The CEO of an AI robotics company she ran from a Miami apartment was better at hiding truths about the company’s progress, herself, and where investors’ money was being spent than guiding the company in producing the service robot that promised it to investors.
At least that’s what a Securities and Exchange Commission complaint against Destiny Robotics and CEO Megi Kavtaradze alleged. Kavtaradze legally does not admit to the accusations, but does not deny them either. And she declined comment when reached by phone on Sunday.
However, money talks. The case settlement, approved Thursday by Judge K. Michael Moore of federal court in Miami, says Kavtaradze agreed to pay the SEC a total of $64,384: $12,990, indicating how much she benefited from the “misrepresentations” in the SEC -complaint; interest of $1,394; and a $50,000 civil penalty.
Although Destiny Robotics is also listed as a defendant in the civil suit, it is a defunct company and therefore has not suffered any penalty or loss.
The SEC complaint stated that in raising $141,000 from investors through crowdfunding, Kavtaradze and Destiny “made material misrepresentations” about:
▪ what Destiny Robotics products could do;
▪ when they would be released;
▪ praised “the completion of the hologram prototype, while omitting that it had been abandoned;”
▪ “the personal and business relationship of a major investor with Kavtaradze while taking advantage of his support and role as a shareholder;
▪ Kavtaradze is “an experienced manager of a technology company”;
▪ Kavtaradze misappropriated some of investors’ money for personal use,” including “meals, travel and application fees for MBA programs.”
Kavtaradze’s LinkedIn page states that she is currently enrolled in an MBA program at the University of California’s Berkeley campus. Despite proudly being named founder and CEO of Destiny in company social media posts in 2021 and 2022, she no longer lists Destiny Robotics under Experience on her LinkedIn page as of Sunday. But she does mention time at a “Stealth Startup” from July 2021 to August 2023.
That’s her time at Destiny Robotics.
The address on Destiny Robotics’ still-active website is 201 SE Second Ave., Monarc at Met, a downtown apartment complex where Kavtaradze lived.
“I started Destiny Robotics to solve the problem of people feeling lonely,” said Kavtaradze’s quote on the Wefunder page. “My mission is to give everyone the humanoid home assistant.”
The SEC complaint stated that beginning July 21, Kavtaradze used various media outlets to tell potential investors that Destiny was “developing next-generation technology that would allow it to produce the world’s first humanoid robot that could serve as assistant and companion in the home. ”
Destiny’s campaign on the crowdsourcing site Wefunder raised $141,455.
Both there and on the website, the SEC complaint said, Kavtaradze was touted as an “experienced technology manager” and “responsible for managing large-scale projects and leading diverse teams.”
The SEC said: “In fact, Kavtaradze had no significant experience as an executive at a technology company, making these statements materially misleading. Before Destiny Robotics, Kavtaradze was never a CEO or executive in a functioning technology company.”
Also: “Kavtaradze has since stated that she had no background in technology other than what she taught herself.”
Destiny told investors they were targeting a humanoid hologram in 2022 and a humanoid robot in 2023. But when Destiny presented the first robot prototype in February 2023, “It was a far cry from the socially intelligent ‘humanoid’ robot that investors represented. Rather, the actual ‘robot’ was merely a shoulder-raised bust with a head that could swivel with a white plastic shell with no human facial features or hair…’
“The prototype shoulder-up robot did not have human-like skin, legs or arms, and looked different from what was advertised to potential investors or depicted in Destiny Robotics’ offering materials. It also didn’t feature advanced AI as shown. Instead, AI software that was widely available on the market was used.”
A month earlier, Kavtaradze had applied to “six prominent MBA programs, using investor funds to pay application fees.”
A TruCrowd crowdfunding offering was canceled after Kavtaradze learned in April 2023 that the Financial Industry Regulatory Authority was investigating Destiny.
Eric Morales., Julia D’Antonio and Russell Koonin conducted the SEC’s investigation. Morales and Koonin handled the lawsuit.
