Summary:
Promai sues ex-CEO Erez Ben-Eshay for NIS 10 million over alleged fraud and forgery.
Ben-Eshay is accused of fabricating documents using ChatGPT, impacting major companies like Boeing and Tesla.
Promai claims to have lost NIS 20 million on projects based on fake contracts.
Ben-Eshay allegedly misrepresented himself as a test pilot and a high-ranking officer in the Israeli Air Force.
The lawsuit follows an investigation revealing the alleged fraud during fundraising efforts.
Promai's Shocking Lawsuit Against Ex-CEO
Israeli startup Promai, known for its innovative AI-based platform for error-free manufacturing, has taken legal action against its former CEO, Erez Ben-Eshay, seeking NIS 10 million (approximately $2.7 million) in damages due to allegations of fraud and forgery.
The Allegations
In a lawsuit filed with the Tel Aviv District Court, Promai claims that Ben-Eshay fabricated documents using ChatGPT, including fake purchase agreements and contracts with major companies like Boeing, Tesla, and Medtronic. These alleged forgeries led Promai to spend around NIS 20 million on developing technologies for non-existent clients, resulting in severe financial losses.
Background of Promai
Founded in 2022 by Dr. Dina Goren-Bar, Promai has developed technology aimed at enhancing the transfer of essential information to production lines, ultimately improving manufacturing processes. The startup has raised $7 million from private investors and currently employs about 40 people.
Ben-Eshay's Deceptive Persona
The lawsuit claims that Ben-Eshay misrepresented himself as a test pilot and a high-ranking officer in the Israeli Air Force to gain the trust of Dr. Goren, with whom he allegedly developed a personal relationship. Promai's lawsuit reveals that he was actually married and fabricated stories about operational duties.
Legal Responses
Ben-Eshay's attorneys, Ariel Shmul and Avital Kidron, have denied all allegations, asserting that the claims are baseless and that he conducted himself lawfully as CEO. They suggest that the matter is a business dispute involving other parties.
Discovery of the Alleged Fraud
The suspicions about Ben-Eshay's activities arose during Promai's efforts to secure new funding, prompting the company to hire Wizman-Yaar for an investigation. Following the investigator's report, Promai filed its lawsuit, determined to take all necessary legal actions to recover damages.
An Israeli Air Force pilot walks to his F-16 fighter jet during a multinational exercise.
Comments