Romance, Lies, and AI: A Startup Scandal Shakes Tel Aviv’s Tech Scene

A storm is sweeping through Tel Aviv’s startup world, mixing high-tech ambition with betrayal, fabricated identities, and AI-generated forgeries. At the center of the chaos is Promai, an artificial intelligence startup once heralded for its promising technology — now in the headlines for a scandal involving its former CEO, millions in lost investment, and a tangled web of personal deception.

Founded in 2022 by AI expert Dr. Dina Olga Goren-Bar, Promai developed a platform aimed at optimizing information transfer to manufacturing lines, a critical efficiency boost in industrial operations. Backed by $7 million in private funding and a team of 40, Promai seemed destined for success.

That dream began to unravel with the revelation that Erez Ben Eshay, Dr. Goren’s romantic partner and appointed CEO, allegedly orchestrated a massive fraud. According to a lawsuit filed in Tel Aviv District Court, Ben Eshay not only misrepresented his military credentials — falsely claiming to be a senior officer and test pilot in the Israeli Air Force — but also used AI tools like ChatGPT to forge major contracts with global corporations like Boeing and Medtronic.

Investigations by the Wizman-Yaar firm found that Promai invested heavily in developing products for these nonexistent contracts, sinking nearly 20 million shekels (approximately $5.4 million) into projects that were never ordered by any client. The alleged deception left the company financially crippled and reputationally damaged.

The complaint further reveals that Ben Eshay received 12% of the company’s shares under false pretenses and that his entire persona — from his military background to his romantic involvement with Dr. Goren — was a calculated façade. To make matters worse, he is reportedly married to another woman and fabricated stories about being away on military duty to maintain his lies.

In the wake of the scandal, Promai has erased its online footprint, shutting down its website and LinkedIn presence. Meanwhile, Ben Eshay’s legal team maintains his innocence, framing the matter as a business dispute unrelated to him.

This case offers a potent reminder of how quickly trust can be weaponized in the high-stakes world of tech startups — especially when personal relationships blur professional judgment.

What Undercode Say:

This scandal is a rare cocktail of romance, digital forgery, and high-level deception in the startup space — and it’s a textbook case of what happens when due diligence falls behind personal trust.

From a cybersecurity and business governance angle, this incident reveals several serious flaws:

Identity Verification Failures: That a CEO could falsely claim military rank and background points to a glaring lapse in background checks — something even seed-stage startups can’t afford to neglect.
Unverified Contracts: The use of ChatGPT to generate forged contracts with major companies like Boeing shows how easily AI can be weaponized when oversight is absent. It’s a wake-up call for investors and boards to verify every high-value contract through direct channels — not just rely on internal reports or flashy presentations.
AI Misuse in Corporate Environments: While AI can enhance productivity, this case exposes a darker side. Tools like ChatGPT, in the wrong hands, can be used to simulate entire business relationships, fool stakeholders, and mislead investors — all with alarming realism.
Corporate Governance at Risk: Ben Eshay’s appointment as CEO was allegedly influenced by a romantic relationship with the founder. This blurs the line between personal loyalty and fiduciary responsibility, a red flag in any corporate structure.
Investor Impact: With nearly $7 million invested and much of it lost, investors now face the reality that insufficient checks and emotionally influenced decisions can destroy not just capital, but entire startups.
The Cost of False Assumptions: Promai developed products based on fake demand. That meant not only wasted resources but missed opportunities to pivot toward real markets — a common risk when decision-making is based on unchecked assumptions.
Reputational Fallout: The erasure of Promai’s digital presence signifies deep reputational damage. In tech, where visibility and trust drive growth, this could be a death sentence.
Lessons for Founders: Passion projects and personal connections are often the glue that forms startups — but without rigorous governance, they can become the fuse that ignites disaster.
ChatGPT’s Legal Risk Factor: The use of generative AI in this case may push courts and regulators to start considering how these tools can be monitored and legally constrained when used in business processes.
The Future of Business Investigations: Firms like Wizman-Yaar are now central to cleaning up messes that should’ve been avoided with upfront diligence. Expect their role to grow as AI forgery tools become more common.

What emerges from this scandal isn’t just the collapse of one company, but a warning signal across the tech ecosystem: trust, while essential, cannot be blind. And when personal relationships enter corporate leadership, checks and balances become not just recommended — but essential for survival.