A Spanish-born entrepreneur who once promised a “one-tap” AI shopping experience is now facing serious fraud charges in the United States. Albert Saniger, founder and former CEO of Nate, a US-based fintech startup, has been accused of deceiving investors by claiming his app used cutting-edge artificial intelligence. In truth, the app depended on teams of human workers in the Philippines to manually complete user transactions.
The charges, announced by the US Department of Justice (DoJ) on Wednesday, allege that Saniger built a false narrative around innovation to lure over $50 million in funding. If convicted, he could face up to 20 years in prison.
"Magic shopping app" that wasn't
Nate, which Saniger launched in 2018 after working briefly at Amazon in London, was marketed as a universal shopping cart app. Its pitch was bold: users could browse any e-commerce site and buy products with a single tap, skipping the checkout entirely. The app claimed to handle everything—from choosing sizes to entering billing and shipping details—using proprietary AI.
In reality, it did no such thing.
Behind the sleek user interface, there were hundreds of contractors—referred to as “purchasing assistants”—based in a call centre in the Philippines. These workers manually carried out every part of the shopping process that the app was supposed to automate.
The FBI described Nate as a “scheme filled with smoke and mirrors.”
"Misled investors by exploiting AI hype"
“As alleged, Albert Saniger misled investors by exploiting the promise and allure of AI technology to build a false narrative about innovation that never existed,” said Matthew Podolsky, acting US attorney for the Southern District of New York.
“This type of deception not only victimises innocent investors, it diverts capital from legitimate startups, makes investors skeptical of real breakthroughs, and ultimately impedes the progress of AI development,” Podolsky added. “This Office and our partners at the FBI will continue to pursue those who seek to harm investors by touting false innovation.”
According to the DoJ, Nate’s actual automation rate was “effectively zero per cent”. The app, which presented itself as a frictionless AI-powered experience, was instead driven by outsourced manual labour. The Verge was the first to report that Nate never used AI to autonomously navigate the checkout process.
The Illusion of automation
To the outside world, Nate was on the cutting edge of AI. To its users, it seemed like magic. But that illusion was built on human hands.
When a user tapped to buy a product, it wasn’t a machine handling the rest—it was a real person, working quietly and anonymously behind the scenes. The DoJ says this “covert employment” was central to maintaining the façade.
The app's central promise—that AI could seamlessly complete online purchases across multiple retailers—was never delivered. And yet, investors poured money in, believing they were backing a genuine technological breakthrough.
What went wrong
By early 2023, Nate had run out of cash. The company was forced to sell its assets, and many investors were left with near-total losses. Saniger had already stepped down as CEO, according to his LinkedIn profile, and is now listed as a managing partner at a New York-based firm.
His education includes an MBA from London Business School, and his career trajectory once looked promising. But now, he faces allegations that could end it altogether.
The DoJ has not specified a court date yet, but the charges carry a maximum sentence of 20 years.
A wider reckoning for AI startups?
The case against Saniger arrives at a time when AI claims are being scrutinised more closely than ever. From venture capital firms to everyday consumers, trust in tech promises is increasingly fragile. This story, of a startup that faked its AI credentials while burning through millions in funding, may only deepen that mistrust.
For now, Saniger maintains his silence. The charges stand. And the gap between what Nate claimed to be and what it really was is now at the heart of a federal criminal case.
The charges, announced by the US Department of Justice (DoJ) on Wednesday, allege that Saniger built a false narrative around innovation to lure over $50 million in funding. If convicted, he could face up to 20 years in prison.
"Magic shopping app" that wasn't
Nate, which Saniger launched in 2018 after working briefly at Amazon in London, was marketed as a universal shopping cart app. Its pitch was bold: users could browse any e-commerce site and buy products with a single tap, skipping the checkout entirely. The app claimed to handle everything—from choosing sizes to entering billing and shipping details—using proprietary AI.
In reality, it did no such thing.
Behind the sleek user interface, there were hundreds of contractors—referred to as “purchasing assistants”—based in a call centre in the Philippines. These workers manually carried out every part of the shopping process that the app was supposed to automate.
The FBI described Nate as a “scheme filled with smoke and mirrors.”
"Misled investors by exploiting AI hype"
“As alleged, Albert Saniger misled investors by exploiting the promise and allure of AI technology to build a false narrative about innovation that never existed,” said Matthew Podolsky, acting US attorney for the Southern District of New York.
“This type of deception not only victimises innocent investors, it diverts capital from legitimate startups, makes investors skeptical of real breakthroughs, and ultimately impedes the progress of AI development,” Podolsky added. “This Office and our partners at the FBI will continue to pursue those who seek to harm investors by touting false innovation.”
According to the DoJ, Nate’s actual automation rate was “effectively zero per cent”. The app, which presented itself as a frictionless AI-powered experience, was instead driven by outsourced manual labour. The Verge was the first to report that Nate never used AI to autonomously navigate the checkout process.
The Illusion of automation
To the outside world, Nate was on the cutting edge of AI. To its users, it seemed like magic. But that illusion was built on human hands.
When a user tapped to buy a product, it wasn’t a machine handling the rest—it was a real person, working quietly and anonymously behind the scenes. The DoJ says this “covert employment” was central to maintaining the façade.
The app's central promise—that AI could seamlessly complete online purchases across multiple retailers—was never delivered. And yet, investors poured money in, believing they were backing a genuine technological breakthrough.
What went wrong
By early 2023, Nate had run out of cash. The company was forced to sell its assets, and many investors were left with near-total losses. Saniger had already stepped down as CEO, according to his LinkedIn profile, and is now listed as a managing partner at a New York-based firm.
His education includes an MBA from London Business School, and his career trajectory once looked promising. But now, he faces allegations that could end it altogether.
The DoJ has not specified a court date yet, but the charges carry a maximum sentence of 20 years.
A wider reckoning for AI startups?
The case against Saniger arrives at a time when AI claims are being scrutinised more closely than ever. From venture capital firms to everyday consumers, trust in tech promises is increasingly fragile. This story, of a startup that faked its AI credentials while burning through millions in funding, may only deepen that mistrust.
For now, Saniger maintains his silence. The charges stand. And the gap between what Nate claimed to be and what it really was is now at the heart of a federal criminal case.
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