Home / Business and Economy / MIT Professor's Startup Accused of $27M Fraud
MIT Professor's Startup Accused of $27M Fraud
26 Mar
Summary
- Faiz Chowdhury's DTI raised nearly $27 million from investors.
- SEC alleges funds were used as a personal piggy bank.
- Chowdhury faces penalties in an ongoing SEC lawsuit.
Faiz Chowdhury's startup, Disruptive Technology Innovations (DTI), attracted nearly $27 million from investors with promises of groundbreaking advancements in artificial intelligence, personalized medicine, and electric vehicle batteries. These claims, often supported by associations with academics like MIT's Professor Ian Hunter, proved to be largely unsubstantiated.
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit in September 2023, alleging Chowdhury diverted over $27 million in investor funding across more than 40 accounts. These funds were reportedly used as a personal "piggy bank" for luxury items and gambling.
Chowdhury has consented to a court judgment to determine monetary penalties, though he denies wrongdoing. The SEC's case highlights how academic prestige and over-the-top claims can mislead investors, with the technology transfer process at universities being exploited.
While Chowdhury rebranded his company to Quantum Age Corp. and continued to solicit funds, the SEC's investigation unraveled the alleged scheme. A final court hearing in March 2026 is expected to decide the extent of Chowdhury's penalties.
