- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jeff Dale2024-10-11T13:44:00
The Securities and Exchange Commission (SEC) ordered the owner of Rimar Capital and a board member of its holding company to pay nearly $524,000 in penalties for defrauding investors with false and misleading statements about its use of artificial intelligence (AI).
Itai Liptz, CEO of Rimar Capital and Rimar Capital USA, agreed to pay more than $202,000 in disgorgement, more than $11,000 in prejudgment interest, a $250,000 fine, and be subject to a five-year officer and director bar, the SEC announced in a press release Thursday. Clifford Boro, a Rimar USA board member, agreed to pay a $60,000 fine, and Rimar agreed to cease and desist from further violations and be censured, the agency noted.
Between May 2022 and April 2023, Rimar purported to use AI to perform automated trading for advisory client accounts for a range of products including equities, futures, and crypto assets, the SEC said in its order.
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