The CEO and CFO of iLearningEngines were indicted April 17 on charges they defrauded investors by fabricating virtually all customer relationships and revenue—at least 90% of the company's reported $421 million in 2023 revenue was fake. The company collapsed into bankruptcy in late 2024 after going public via SPAC, and prosecutors say the defendants exploited investor excitement over AI hype by using forged contracts and fake customer payments to create the appearance of legitimate revenue. This case highlights broader risk in AI-branded companies getting premium valuations before real business fundamentals are proven.