The U.S. Securities and Exchange Commission’s crusade against “AI washing” has led to charges against the founder and former CEO of a now-defunct recruiting firm that claimed to use artificial intelligence to match businesses with diverse job candidates.

The agency says Ilit Raz pitched Joonko as “the only automated sourcing platform focused solely on underrepresented candidates,” a tactic the agency says helped draw in millions of dollars from customers and financial backers.