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Enforcement or court caseFinanceUSConfirmed

SEC fines two investment advisers $400,000 for false claims about using AI

See how this story connects

Source: U.S. Securities and Exchange Commission

The US Securities and Exchange Commission settled charges on 18 March 2024 against Delphia (USA) and Global Predictions for misleading statements about their use of AI. Delphia paid a $225,000 penalty for claiming its models used AI and machine learning on client data when it lacked that capability, and Global Predictions paid $175,000 over claims including that it was the “first regulated AI financial advisor”.

Why it matters

Investment advisers and listed companies were told that claims about using AI fall under the same anti-fraud and marketing rules as any other claim to clients.

When
18 Mar 2024
ID
WTA-N-2024-0084
Who
SEC, Delphia, Global Predictions; Gary Gensler, Gurbir Grewal
Authority
Securities and Exchange Commission
Target
Delphia; Global Predictions
Action
settled charges; $225,000 and $175,000 (imposed)
Status
settled · Enforcement ledger

Summary by wheresthe.ai, from U.S. Securities and Exchange Commission. Checked against the source on 9 Oct 2026.

Read the original at U.S. Securities and Exchange Commission

Source copy: download the page text as saved on 18 Oct 2026 (PDF). Also held by the Internet Archive.

Next stop on this Storyline: What happened nextSEC and SDNY charge Nate founder over claims his shopping app ran on AI

Cite this story

WTA-N-2024-0084: “SEC fines two investment advisers $400,000 for false claims about using AI.” wheresthe.ai, 18 Mar 2024. https://wheresthe.ai/d/us-sec-delphia-global-predictions-ai-washing-2024-03/ (source: U.S. Securities and Exchange Commission).

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