SEC AI Washing Enforcement (Delphia/Global Predictions)
System Description
Investment advisory services marketing AI-powered trading and prediction capabilities
Authoritative Output Type
Investment recommendations marketed as AI-generated with superior predictive capabilities
Missing Required State
Actual functional AI implementation, substantiated performance claims, truthful capability descriptions
Why This Is SAF
Companies marketed AI capabilities they did not actually possess - Delphia claimed AI could 'predict which companies are about to make it big' while Global Predictions claimed to be 'the first regulated AI financial advisor' using 'expert AI-driven forecasts'
Completeness Gate Question
Do marketed AI capabilities accurately reflect actual implemented technology and demonstrated performance?
Documented Consequence
$400,000 combined penalties (Delphia $225K, Global Predictions $175K), first SEC 'AI washing' enforcement actions
Primary Sources
Notes
- **Verified**: 2025-12-19 - **Sec Action Date**: March 18, 2024 - **Total Penalties**: $400,000 - **Notes**: First-ever SEC enforcement actions for 'AI washing' - making false claims about AI capabilities
Prevent this in your system.
The completeness gate question above is exactly what Ontic checks before any claim gets out. No evidence, no emission.