A top federal prosecutor is reportedly targeting startups that defraud investors ahead of going public. Ismail Ramsey, U.S. attorney for the Northern District of California, said on Tuesday (March 19) that his office’s proximity to Silicon Valley and its investor community makes it uniquely positioned to go after artificial intelligence and other tech startups that dupe backers before their initial public offering (IPO). “These ‘fake it till you make it’ pre-IPO frauds erode the integrity of public and private financial markets,” said Ramsey, per the report. He added that startup founders could be tempted to mislead investors about their revenue base, product readiness, and customer reach to drive up interest in a potential IPO. “As with any such emerging technologies, AI is fertile ground for fraudsters to make false and exaggerated claims,” said Ramsey, per the report. The Federal Trade Commission has reportedly seen a jump in AI scam advertisements on social media.