Summary:
10 million shekel lawsuit filed against Promai's former CEO for fraud.
CEO allegedly forged contracts using ChatGPT and lied about military service.
Promai spent 20 million shekels on products that were never ordered.
Legal representatives claim allegations are baseless and a mere commercial dispute.
The Allegations Against Promai's Former CEO
Promai, a Tel Aviv-based startup, is embroiled in a scandal that has led to a 10 million shekel lawsuit against its former CEO, Erez Ben Eshay. The company alleges that Ben Eshay posed as a senior officer in the Israeli Air Force, engaging in a web of forgery, deceit, and defraudation.
Key Findings from the Investigation
An investigation conducted by Wizman-Yaar revealed that Ben Eshay allegedly forged contracts, including one fabricated with Boeing, utilizing ChatGPT for document creation. This act of deception has raised serious concerns about the integrity of Promai's operations.
About Promai
Founded in 2022 by Dr. Dina Olga Goren-Bar, Promai aims to enhance the flow of vital information to production lines, reducing operational errors. The startup has raised $7 million from private investors and employed around 40 people before the scandal erupted.
The Personal Deception
The lawsuit states that Dr. Goren was misled into a personal relationship with Ben Eshay, who falsely claimed to be a test pilot and lieutenant colonel. It was later discovered that he was married and had fabricated stories about military duties to gain her trust.
Financial Implications of the Fraud
Promai claims that over the past year, it manufactured products under the impression that they were ordered by Medtronic and Boeing. However, it was revealed that all documentation related to these contracts was falsified, leading to the company spending approximately 20 million shekels on products that were never ordered.
Legal Response
Ben Eshay's attorneys have denied all allegations, asserting that their client acted lawfully and ethically. They claim that the lawsuit is merely a commercial dispute among other parties and that he has suffered personal and financial harm due to the situation.
The Aftermath
As a result of these events, Promai's website and LinkedIn presence have been removed, leaving the future of the startup uncertain amidst the fallout of this scandal.
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