Ex-CEO, ex-CFO of bankrupt AI company charged with fraud

The former CEO and CFO of bankrupt AI firm iLearning were indicted for allegedly fabricating customers and revenue.

Prosecutors said at least 90% of the company’s reported 2023 revenue was fake, supported by sham contracts and circular fund transfers.

The case shows how revenue inflation and round-trip financing can distort valuations in hot sectors.

It also highlights the role of short sellers and regulators in exposing alleged accounting fraud.