By David Swan
Publication Date: 2026-05-15 06:17:00
The former chief executive of a Sydney startup that falsely claimed to have built a revolutionary artificial intelligence platform is facing prison for falsifying financial records to defraud investors of $39 million.
David Fairfull, 59, appeared in the Federal Court in Sydney on Friday morning where he pleaded guilty to two counts under the Corporations Act: making false and misleading statements to entice investors and dishonestly exploiting his position as a director.
Violations of the law carry a maximum penalty of 15 years in prison. Fairfull’s lawyer said a sentence of three years or less was appropriate, while prosecutors argued Fairfull’s actions amounted to “very serious crimes at the upper limit of the sentence.”
The prosecutor told the court…