Some current and former staffers at Builder.ai, a once-promising AI start-up, have been issued subpoenas from the US Attorney’s office in Manhattan days after the company declared insolvency.
A former high-level employee at the Microsoft-backed company confirmed that, on the advice of counsel, some employees have been asked to preserve documents and other evidence related to a potential criminal investigation.
“They’re looking into inflated sales numbers and round tripping,” a former staffer said, referring to a method for evading taxes. Regardless of whether or not the investigations lead to any litigation or prosecutions, the London-based Builder.ai’s days as a high-flying start-up are done.
“They’re entering insolvency and…
