Destiny Robotics Corp., et al.

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26157 / October 15, 2024

Securities and Exchange Commission v. Destiny Robotics Corp., et al., Civil Action No. 1:24-cv-23958-KMM (S.D. Fla., filed Oct. 15, 2024)

Start-Up AI and Robotics Company and CEO Settle SEC Charges

The Securities and Exchange Commission today charged Destiny Robotics Corp., an artificial intelligence (“AI”) and robotics start-up company formerly based in Miami, Florida, and Megi Kavtaradze, its founder and CEO, (collectively “Defendants”) with making false and misleading statements regarding the company’s operations and products, including a robot that would be manufactured and sold as a home companion.

The SEC’s complaint alleges that from February 2022 through March 2023, the Defendants obtained approximately $141,000 from investors by claiming to be developing the world’s first humanoid AI robot at-home assistant and companion for delivery by 2023.  In truth, the Defendants were allegedly developing a robot that would have been much less sophisticated and capable than what was described to investors and had no realistic possibility of delivering the robot described to consumers by 2023.  The complaint also alleges that the Defendants falsely described Kavtaradze’s qualifications and failed to disclose Kavtaradze’s personal relationship with the lead investor, while touting his endorsement of the company.  Additionally, as alleged, the Defendants failed to disclose to investors that Kavtaradze used some investor funds for personal expenses. 

The SEC’s complaint, filed in U.S. District Court for the Southern District of Florida, charges the Defendants each with violating the antifraud provisions of Sections 17(a)(2) and (3) of the Securities Act of 1933.  

The Defendants have each consented, without admitting or denying the allegations, to the entry of judgments which permanently enjoin them from violating the charges levied against them. In addition, Kavtaradze has offered to pay disgorgement of $12,990.63 plus prejudgment interest of $1,394.06, and a civil penalty of $50,000.  The settlement is subject to court approval.  

The SEC’s investigation was conducted by Eric E. Morales and Julia D’Antonio, with assistance from Russell Koonin in the Miami Regional Office.  The case was supervised by Thierry Olivier Desmet, Teresa J. Verges, and Glenn S. Gordon.  The SEC appreciates the assistance of the Financial Industry Regulatory Authority.