Individual Action
SEC v. Global Predictions (AI-Washing)
In the Matter of Global Predictions, Inc.
Where it stands
Settled cease-and-desist order entered March 18, 2024. The firm falsely claimed to be the 'first regulated AI financial advisor' and to offer 'Expert AI-driven forecasts.' Censured, ordered to cease and desist, and assessed a $175,000 civil penalty payable in four installments of $43,750 (at entry and at 120, 240, and 360 days).
Key ruling
Violations found of Advisers Act § 206(2) and § 206(4) and Rules 206(4)-1(a), 206(4)-1(b), 206(4)-1(d) and 206(4)-7; order also addressed an improper hedge clause in advisory contracts. Entered by settled cease-and-desist order, without the respondent admitting or denying the findings.
Note on this record
Regulatory enforcement action, not a private class action. No private securities class action against Global Predictions was located.The record
- Court
- U.S. Securities and Exchange Commission (administrative proceeding)
- Case number
- Admin. Proc. File No. 3-21895 (Advisers Act Release No. 6574)
- Filed
- 2024-03-18
- Defendants
- Global Predictions, Inc.
- Plaintiffs
- Plaintiff class not established
- Technology at issue
- Global Predictions PortfolioPilot AI-driven investment forecasting platform
- Relief sought
- Censure, cease-and-desist order, and civil monetary penalty
- Settlement
- $175,000 civil penalty
Claims pleaded
Sources (2)
- Order Instituting Administrative and Cease-and-Desist Proceedings — Global Predictions, Inc., Advisers Act Release No. 6574U.S. Securities and Exchange Commission · 2024-03-18
- SEC Charges Two Investment Advisers with Making False and Misleading Statements About Their Use of Artificial IntelligenceU.S. Securities and Exchange Commission · 2024-03-18
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