AI Misconduct.com

The daily rap sheet of the machine age.

Updated Nov 2, 2026
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Wednesday, October 28, 2026

11 items

Florida AG sues AI 'nudification' site over child images

Who did it: HYBRID Florida Politics

Florida Attorney General James Uthmeier has sued A2E, an AI website owned by Nevada-based Rengstorff Consulting, alleging it offers "nudification" that turns real photos into nude and sexualized images, including of children. The complaint cites Florida criminal cases in which the platform was allegedly used to make child sexual abuse material without flagging or reporting it, and seeks an injunction and civil penalties.

Police say hooch accused learned to brew via Google AI

Who did it: HUMAN The Hindu

Police in Madhya Pradesh's Dewas say prime accused Ajay Rathore used the AI search mode in Google to learn how to make liquor at home and find chemical sellers, then slipped fake bottles into cartons of real liquor. Thirteen people have allegedly died in two villages since September 27, though police say a link awaits forensic reports. Eleven people have been arrested.

Seven indicted over alleged Medicaid fraud with belated AI notes

Who did it: HUMAN Medical Daily

A Rhode Island grand jury has indicted seven people tied to U'Nique Diversity Innovations, a Providence community health worker agency, over an alleged scheme to collect about $2 million from Medicaid. Prosecutors say owner Shanee Vega and employee Michael Pete used AI to generate patient notes and treatment records months after services supposedly took place. The defendants are presumed innocent.

Oregon nonprofits accuse GoFundMe of AI-made impersonation pages

Who did it: HYBRID Reuters

Six Oregon nonprofits allege in a class action that GoFundMe used AI to create donation pages bearing their names and logos without telling them, and that claiming donations meant accepting its terms, including a cut. GoFundMe, which has since removed the pages, argues fair use and no harm; Judge Amy Potter heard arguments Oct. 26 on whether the suit can proceed.

Stanford authors opt out of Anthropic deal, join separate suit

Who did it: HUMAN The EDU Ledger

Stanford English professors Tobias Wolff and Chang-rae Lee opted out of the $1.5 billion Bartz v. Anthropic settlement and in May 2026 joined Cruz v. Anthropic, which seeks up to $150,000 per infringed work. Plaintiffs allege Anthropic downloaded books from shadow libraries including LibGen and PiLiMi; Wolff says 10 of his publications were used to train AI without permission.

Judge opens ex-Apple employee's ChatGPT and Claude use to discovery

Who did it: HUMAN Android Headlines

In Apple's trade-secret suit against OpenAI, io Products and former employees Chang Liu and Tang Tan, Judge Edward Davila expanded expedited discovery, letting Apple obtain records of Liu's use of ChatGPT, Claude, Codex, OpenClaw and other AI tools on personal and work devices. He denied requests about OpenAI's own devices, accounts and internal investigations. OpenAI denies the claims.

xAI unit offers home buyouts to neighbors who skip noise suit

Who did it: HUMAN The Guardian

MZX, the xAI subsidiary operating a gas-turbine power plant for its datacenters in Southaven, Mississippi, has offered by letter to buy nearby homes on condition that owners not join a class-action noise lawsuit against the company. DeSoto county records show five homes bought by MZX since 9 October. xAI denies the lawsuit's claims and did not answer questions about its plans.

Mississippi lawyer ordered to pay $5,000 over ChatGPT fake cases

Who did it: HYBRID Darkhorse Press

The Mississippi Court of Appeals ordered defense attorney Michael Crosby to personally pay the state $5,000 after his appeal briefs cited cases that do not exist. Crosby admitted using ChatGPT "to assist in enhancing and revising my work" and apologized; the sum covers about 40 hours a state attorney spent answering his original brief. The order was entered Oct. 21.

Investor suit alleges Alphabet hid Gemini 3.5 Pro delays

Who did it: HUMAN TipRanks

A class action securities lawsuit against Alphabet alleges the company concealed that Gemini 3.5 Pro was delivering disappointing training results and that its launch would be significantly delayed, making its upbeat statements materially misleading. The suit, advertised by law firm Levi & Korsinsky, seeks to recover losses for shareholders affected between May 19, 2026 and July 16, 2026.

Kerala CM vows crackdown on AI-made fake lottery tickets

Who did it: HUMAN The South First

Kerala Chief Minister V D Satheesan told the Assembly that AI-generated counterfeit lottery tickets are being sold on social media, sometimes the same ticket to several buyers, with sellers paying small prizes to win trust and vanishing when a big prize is claimed. He said the racket is particularly prevalent in districts such as Palakkad and promised stringent action.

Startup Cathedral says its AI agents breached Anthropic in under 12 hours

Who did it: HYBRID TechRadar

Cathedral, a startup founded by former DOGE members, says its AI agents broke into Anthropic through third-party business software in under 12 hours, reporting results via Anthropic's bug bounty. Anthropic confirmed access to a "limited set" of sales, HR and IT systems and some customer and partner contact records, and, per Gizmodo, accused Cathedral of not disclosing the full extent of its activity.