Albert Saniger, the founder of Nate, an AI shopping app, has been charged with defrauding investors after it was revealed that the app relied on human contractors in the Philippines rather than AI technology. Despite raising over $50 million, including a recent $38 million Series A, the app's automation rate was reportedly 0%. The Department of Justice claims Saniger misled investors by claiming the app could complete transactions without human intervention. Nate's financial troubles led to asset sales earlier this year. Saniger is now a managing partner at Buttercore Partners.