United States SEC Charged Artificial Intelligence Recruitment Startup Joonko CEO Ilit Raz for $21 Million Fraud with False & Misleading Statements of Using Buzzwords Including Artificial Intelligence to Help Clients Find Candidates to Fulfil Diversity Hiring Goals, Inflating Revenue, Clients & No. of Job Candidates on Recruitment Platform, Provided False Information to Investors of More than 100 Clients Including Fortune 500 Companies, $1 Million Revenue & 100,000 Active Job Candidates
12th June 2024 | Hong Kong
The United States Securities & Exchange Commission (SEC) has charged artificial intelligence (AI) recruitment startup Joonko CEO Ilit Raz for $21 million fraud with false & misleading statements of using buzzwords including artificial intelligence to help clients find candidates to fulfil diversity hiring goals, inflating revenue, clients & no. of job candidates on the recruitment platform (Joonko). Joonko CEO Ilit Raz had provided false information to investors of more than 100 clients including fortune 500 companies, $1 million revenue & 100,000 active job candidates. United States SEC (11/6/24): “The Securities and Exchange Commission today charged Ilit Raz, CEO and founder of the now-shuttered artificial intelligence recruitment startup Joonko, with defrauding investors of at least $21 million by making false and misleading statements about the quantity and quality of Joonko’s customers, the number of candidates on its platform, and the company’s revenue. According to the SEC’s complaint, Joonko claimed to use artificial intelligence to help clients find diverse and underrepresented candidates to fulfill their diversity, equity, and inclusion hiring goals. To raise money for Joonko, the complaint alleges that Raz falsely told investors that Joonko had more than 100 customers, including Fortune 500 companies, and provided investors with fabricated testimonials from several companies expressing their appreciation for Joonko and praising its effectiveness. Raz also allegedly lied to investors that Joonko had earned more than $1 million in revenue and was working with more than 100,000 active job candidates. When an investor grew suspicious of Raz’s claims, Raz allegedly provided the investor with falsified bank statements and forged contracts in an effort to conceal the fraud. According to the complaint, the scheme unraveled in mid-2023 when the investor confronted Raz, who admitted to forging bank statements and contracts and lying about Joonko’s revenue and number of customers. The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Raz with violating the antifraud provisions of the federal securities laws and seeks a permanent injunction, civil money penalties, disgorgement with prejudgment interest, and an officer-and-director bar against Raz. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Raz. The SEC’s investigation was conducted by Alicia Guo, Ariel Atlas, Neil Hendelman, and Lindsay S. Moilanen and was supervised by Sheldon L. Pollock of the New York Regional Office. The litigation will be led by Ms. Guo and Ms. Atlas, and supervised by Daniel Loss and Mr. Pollock. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York and the FBI.”
“ United States SEC Charged Artificial Intelligence Recruitment Startup Joonko CEO Ilit Raz for $21 Million Fraud with False & Misleading Statements of Using Buzzwords Including Artificial Intelligence to Help Clients Find Candidates to Fulfil Diversity Hiring Goals, Inflating Revenue, Clients & No. of Job Candidates on Recruitment Platform, Provided False Information to Investors of More than 100 Clients Including Fortune 500 Companies, $1 Million Revenue & 100,000 Active Job Candidates “
![](https://www.caproasia.com/wp-content/uploads/2025/08/Air-Charter-Service-728x90-1.png")
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement: “We allege that Raz engaged in an old school fraud using new school buzzwords like ‘artificial intelligence’ and ‘automation. As more and more people seek out AI-related investment opportunities, we will continue to police the markets against AI-washing and the type of misconduct alleged in today’s complaint. But at the same time, it is critical for investors to beware of companies exploiting the fanfare around artificial intelligence to raise funds.”
United States SEC Charged Artificial Intelligence Recruitment Startup Joonko CEO Ilit Raz for $21 Million Fraud with False & Misleading Statements of Using Buzzwords Including Artificial Intelligence to Help Clients Find Candidates to Fulfil Diversity Hiring Goals, Inflating Revenue, Clients & No. of Job Candidates on Recruitment Platform, Provided False Information to Investors of More than 100 Clients Including Fortune 500 Companies, $1 Million Revenue & 100,000 Active Job Candidates
Caproasia Users
- Manage $20 million to $30 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2026 Investment Day
- March - Hong Kong
- March - Singapore
- April - Hong Kong
- April - Singapore
- July - Hong Kong
- July - Singapore
- Sept- Hong Kong
- Sept - Singapore
- Oct- Hong Kong
- Nov - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
