"Paul Roberts, the founder and former CEO of Kubient, inflated his company's revenue and lied about the performance of one of its signature products, an AI-powered tool that was supposed to detect ad fraud in the digital advertising industry," said Damian Williams, the U.S. Attorney for the Southern District of New York, in a statement. "To carry out his scheme, Roberts had fake documents created to mislead the independent certified public accountants engaged to audit Kubient's financial statements."
From about October 2019 to March 2021, Roberts allegedly executed 'a scheme to defraud investors and auditors of Kubient,' causing the company to 'improperly recognize more than $1.3 million in fraudulent revenue' in its financial statements at the time of its initial public offering, and 'made material misrepresentations about the efficacy of Kubient's proprietary fraud detection tool, Kubient Artificial Intelligence,' federal prosecutors said in a news release.
The $1.3 million in fraudulent revenue equaled over 94% of Kubient's reported revenue for 2020 at the time of its initial public offering in or about August 2020, according to prosecutors who said Roberts made 'material misrepresentations' to the U.S. Securities and Exchange Commission.
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