Former CEO Of Canadian AI Company Charged With Investment Fraud Scheme Targeting U.S. Investors

SAN FRANCISCO – Matthew Derrick Hudson, the former CEO and founder of Invenia Technical Computing Corporation, has been charged with wire fraud in connection with a scheme that raised over $100 million from outside investors.  Hudson was arrested last week in the Northern District of California and appeared in federal court in San Francisco today for a detention hearing.  

According to the criminal complaint filed on Sept. 18, 2025, and unsealed today, Hudson, 42, a Canadian national, is alleged to have lied to Invenia’s investors from 2020 and continuing through 2022.  The complaint alleges that some of the investors were located in or had representatives in the Northern District of California, and that other investors were based elsewhere in the United States.  During the relevant period, Invenia was a private company based in Canada and the United Kingdom that claimed to apply artificial intelligence and machine learning solutions to the North American energy markets.  

Hudson allegedly led investors to believe that Invenia had already achieved significant financial success, with growing revenues and cash balances exceeding hundreds of millions of dollars.  Hudson did so by distributing and causing the distribution of falsified audited financial statements, invoices, and other financial documents.  For example, the complaint alleges that shortly before Invenia closed its Series B fundraising round, Hudson sent an audit report that purported to verify Invenia’s 2019 balance sheet and financial statement that, among other things, claimed Invenia had approximately $218 million CAD in cash and approximately $295 million CAD in revenue.  The real audit report for that year produced by Invenia’s Canadian auditor showed Invenia had approximately $6 million CAD in cash and $26 million CAD in revenue.  

The complaint also describes how Hudson used fake email accounts and invoices to advance the fraud scheme.  Invenia partnered with Energy Company 1, a company based in North Dakota, to engage with North American energy markets.  On multiple occasions, Hudson introduced fake email accounts for an Energy Company 1 employee to representatives of Invenia investors who were conducting diligence on Invenia.  Hudson then told a real person at Energy Company 1 to ignore any outreach from representatives of Invenia’s investors.  Fabricated invoices and other documents were also sent to Invenia investors that included a fake phone number for Energy Company 1 that was associated with an account allegedly paid for by Hudson.

United States Attorney Craig H. Missakian and FBI Acting Special Agent in Charge Matt Cobo made the announcement.  

Hudson was released on bond pending trial.  He is next scheduled to appear in federal court on Nov. 17, 2025, for a status conference before U.S. Magistrate Judge Laurel Beeler.

A criminal complaint merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Hudson faces a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution, for the charge of wire fraud in violation of 18 U.S.C. § 1343.  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  

The U.S. Securities and Exchange Commission has also filed a civil enforcement action in the Northern District of California against Hudson alleging violations of securities laws.  

Assistant U.S. Attorney Patrick O’Brien is prosecuting the case with the assistance of Maryam Beros and Mimi Lam.  The prosecution is the result of an investigation by the FBI.  The U.S. Attorney’s Office thanks the San Francisco Regional Office of the U.S. Securities and Exchange Commission for its assistance in the investigation.