SEC charges Rimar Capital over false claims of an AI-driven trading platform

What happened?

Rimar Capital, LLC, a state-registered investment adviser in Burlingame, California, marketed automated trading strategies "purportedly driven by the use of artificial intelligence". Its owner Itai Liptz was its sole employee and only investment manager. To fund its development, Liptz and board member Clifford Boro sold Simple Agreements for Future Equity (SAFEs) in the holding company Rimar Capital USA, raising $3.725 million from 45 investors between May 2022 and April 2023, according to the SEC order.[2]

Pitch decks, posts in a members-only investment group and emails repeatedly described Rimar LLC as having an artificial intelligence-driven platform for trading stocks and crypto assets. The SEC found that "the firm had no trading application at all at the time of the fundraising, and has never had a trading platform for stock or crypto assets", and that claims about coders and data processing referred to overseas entities Rimar did not own. The materials also claimed $16–20 million in assets under management when Rimar LLC had less than $2 million in 2022, when about three quarters of the SAFEs were sold, and showed returns such as "46% CAGR since 2015" that were not Rimar LLC's.[2]

At least 20 of the 45 SAFE investors also became advisory clients, recruited with the same claims and an offer of half-price management fees. Liptz used some SAFE proceeds for personal expenses. The SEC found Liptz knew or was reckless in not knowing the statements were false, and that Boro should have known had he exercised reasonable care as a board member.[2]

"Through entities he controlled, Liptz lured investors and clients with multiple fabrications, including with buzzwords about the latest AI technology," said Andrew Dean, co-chief of the SEC's Asset Management Unit, who said the agency would pursue firms that "engage in 'AI washing'". Cointelegraph and Decrypt reported the settlement on its announcement.[1][4][5]

When did it happen?

1. May 2022

   Liptz and Boro begin selling SAFEs in Rimar Capital USA using claims of an AI-driven trading platform.[2]

2. Apr 2023

   The SAFE fundraising ends after $3.725 million is raised from 45 investors.[2]

3. Oct 10, 2024

   The SEC announces settled antifraud orders against Rimar USA, Rimar LLC, Liptz and Boro, with $310,000 in penalties and an industry bar for Liptz.[1][2]

4. Apr 30, 2026

   The SEC approves a plan to distribute the $310,000 Fair Fund to SAFE investors based on their out-of-pocket losses.[3]

What was the impact?

• Financial: $3.725 million raised from investors on false claims; $310,000 in civil penalties; $213,611.25 in disgorgement and prejudgment interest · ≈ $3.7 million[2][3]
• Customers: 45 SAFE investors, at least 20 of whom also became advisory clients[2][3]
• Other: The SEC order does not state total investor losses; the distribution plan pays SAFE investors based on their out-of-pocket losses.[2][3]

Severity 3 of 5: Rubric 3 (regulatory finding with material harm): settled SEC antifraud findings over $3.725m raised from 45 investors on false AI and performance claims, $310,000 in penalties and an industry bar for the owner; not large losses or many customers.

How did Rimar Capital USA, Inc. / Rimar Capital, LLC respond?

No public statement found as of 2026-10-21 from Rimar Capital, Itai Liptz or Clifford Boro (searched the SEC release and news coverage of the settlement). All four respondents consented to the order without admitting or denying the SEC's findings.[1]

What was the outcome, and did regulators act?

All respondents were ordered to cease and desist. Liptz was barred from association with brokers, dealers and investment advisers, with the right to reapply after five years, ordered to pay $202,604 in disgorgement plus $11,007.25 in interest (deemed satisfied by offsets against his capital advances) and a $250,000 civil penalty. Boro paid a $60,000 penalty and Rimar LLC was censured. The SEC placed the $310,000 in penalties in a Fair Fund and approved its distribution plan on 30 April 2026.[1][2][3]

1. SEC Charges Rimar Capital Entities and Owner Itai Liptz for Defrauding Investors by Making False and Misleading Statements About Use of Artificial Intelligence (2024-167) official
   U.S. Securities and Exchange Commission · Oct 10, 2024
   “"Through entities he controlled, Liptz lured investors and clients with multiple fabrications, including with buzzwords about the latest AI technology," said Andrew Dean, Co-Chief of the SEC's Asset Management Unit.”
2. Order Instituting Administrative and Cease-and-Desist Proceedings, In the Matter of Rimar Capital USA, Inc., Rimar Capital, LLC, Itai Royi Liptz, and Clifford Todd Boro (33-11316) official
   U.S. Securities and Exchange Commission · Oct 10, 2024
   “The marketing materials and solicitation communications also repeatedly referred to Rimar LLC as having an artificial intelligence-driven platform for trading, among other products, stock and crypto assets. But the firm had no trading application at all at the time of the fundraising, and has never had a trading platform for stock or crypto assets.”
3. Order Approving Plan of Distribution, In the Matter of Rimar Capital USA, Inc., et al. (34-105345) official
   U.S. Securities and Exchange Commission · Apr 30, 2026
   “The Proposed Plan provides for the distribution of the Net Available Fair Fund to investors based on their out-of-pocket losses on SAFEs purchased between May 1, 2022, and April 30, 2023.”
4. SEC settles with trading firm in $4M 'AI-washing' scheme news
   Cointelegraph · Oct 10, 2024
   “A trading firm has settled charges with the United States Securities and Exchange Commission, after the agency accused it of faking its artificial intelligence capabilities and misleading investors to raise almost $4 million.”
5. SEC Settles Charges With Trading Firm It Says Tricked Investors With AI 'Buzzwords' news
   Decrypt · Oct 10, 2024