Former CEO Puthugramam Chidambaran and ex-CFO Sayyed Farhan Ali Naqvi of bankrupt AI firm iLearningEngines were indicted in Brooklyn federal court on fraud charges. The indictment says at least 90% of the company's $421 million in reported 2023 revenue was fabricated via forged contracts and "round trip" transfers. The U.S. Attorney said the "truly artificial part" was its customers and revenues.
Workers training Meta's AI told SvD and GP that Meta's smart glasses can capture private moments, such as bathroom visits, which may then appear on screens in Kenya. Four data protection authorities have taken action; Meta says it is ending work with annotation firm Sama, which it says does not meet its standards, and Sama says over 1,000 employees face redundancy.
Warren County Prosecutor David Fornshell says two Ohio high school students were arrested in separate cases involving AI-generated pornography of other students. One allegedly made images from underage classmates' social media photos and shared them, facing nine felony counts; the other faces over 50 child pornography-related charges for allegedly having such images without sharing them. Both are due in juvenile court.
The Jasper County Sheriff's Office opened an investigation after AI-altered images depicting high school girls nude circulated on social media, allegedly made by boys at the same school. Sheriff Chuck Havard says arrests will follow if probable cause exists, "regardless of any student's age"; one parent alleges the school district knew a week before addressing it publicly.
After a Florida family posted about their missing dog online, a caller claimed it had been hit by a vehicle and needed $2,800 for emergency surgery, sending AI-generated photos of it on an operating table. The clinic's address turned out to be city hall; no money was sent, the dog was recovered, and the Volusia County Sheriff's Office is investigating.
Who did it: HYBRID AI Hallucination Cases database
Elementis Specialties confirmed that its use of AI produced several citation errors in a motion to dismiss, including "a completely hallucinated cite". U.S. District Judge Kenly Kiya Kato found no bad faith and denied the plaintiff's sanctions bid, but called the failure to verify "inexcusable" and warned the company and its counsel against similar "mistakes".
Police in Xunhua county, Qinghai, say a man used AI to generate a photo of himself in the Yellow River to frighten his wife after a domestic quarrel. She reported a suicide threat on April 14, prompting a river search; officers found nothing, traced the fake, and he confessed and was given administrative detention.
Optometrist Joseph Allen, who runs the YouTube channel Dr. Eye Health, found AI deepfake videos imitating him that spread false information and sold eyedrops claimed to reverse myopia. He says it took a month to reach TikTok and three more weeks to prove he was genuine; a deplatformed account reappeared within two or three hours with the content reuploaded.
