CEO of AI ad-tech firm pledging “world free of fraud” sentenced for fraud
In May 2024, the website of ad-tech firm Kubient touted that the company was "a perfect blend" of ad veterans and developers, "committed to solving the growing problem of fraud" in digital ads. Like many corporate sites, it also linked old blog posts from its home page, including a May 2022 post on "How to create a world free of fraud: Kubient's secret sauce."
These days, Kubient's website cannot be reached, the team is no more, and CEO Paul Roberts is due to serve one year and one day in prison, having pled guilty Thursday to creating his own small world of fraud. Roberts, according to federal prosecutors, schemed to create $1.3 million in fraudulent revenue statements to bolster Kubient's initial public offering (IPO) and significantly oversold "KAI," Kubient's artificial intelligence tool.
The core of the case is an I-pay-you, you-pay-me gambit that Roberts initiated with an unnamed "Company-1," according to prosecutors. Kubient and this firm would each bill the other for nearly identical amounts, with Kubient purportedly deploying KAI to find instances of ad fraud in the other company's ad spend.