Michael Cole, a Lakewood radiologist, faces civil fraud charges from Colorado for allegedly defrauding 14 investors of $5.2 million through his company Sage Income LLC. Cole claimed the firm used proprietary AI software to trade securities, promising annual returns of 9% to 15%. Instead, the fund lost money every month from November 2019 through December 2024. He allegedly paid earlier investors with new investors' money in a Ponzi-like pattern and used funds for personal expenses, including a $1.2 million payment to a company he controlled. By February 2025, investors had lost more than $3.9 million.
Cole admitted to investigators that investor funds went toward developing and training the AI software. He is not licensed to sell securities in Colorado, and the case remains ongoing. He also owed $1.3 million to former business partners and family members from a previous venture called Cole Capital LLC.
On the investment front, UBS strategist Matthew Carter urges investors to diversify AI exposure beyond a handful of big tech companies. UBS raised its AI capital spending forecasts to $1 trillion in 2026, $1.4 trillion in 2027, and $1.5 trillion in 2028. He recommends looking at semiconductors, cloud providers, power companies, and geographic diversification across Asia and Europe.
The broader AI stock sell-off has hit hard, with the Nasdaq Composite plunging 5.5% in one session and AI-related companies losing $1 trillion in market value. Over 500 data center projects are under construction in the US, but opposition has already forced cancellation of 46 projects worth $170 billion. Data center spending contributed to 30% of US growth in 2025 and 2026, with spending surging 150%.
Apple is racing to make Siri more agentic, with fine-grained control over its own apps expected in iOS 27.3. Integration with third-party apps like Grubhub and OpenTable is likely coming in the Spring. Apple ultimately wants Siri to handle ongoing tasks rather than one-off requests, possibly as early as next year.
Jeff Bezos said AI-driven productivity could eventually allow workers to earn enough with a three-day work week. Amazon continues to invest billions in data centers and cloud computing for AI demand. Nvidia's Jensen Huang and JPMorgan's Jamie Dimon also predict shorter workweeks in the future.
Nothing is preparing to launch its first AI-native hardware product in December 2026. CEO Carl Pei confirmed the device will have no new screen and cannot be replicated through a mobile app. He described it as a productivity tool that captures useful information from everyday conversations without interrupting the moment.
Research from Carnegie Mellon University and Microsoft surveyed 319 white-collar workers and found that higher confidence in AI was linked to less critical thinking effort. Managers should encourage employees to question and verify AI output rather than accepting it as correct.
ServiceNow spent over $9 billion on acquisitions in the first nine months of 2026, shifting from net cash to net debt. Major deals included Armis for about $7.6 billion and Veza for roughly $1.2 billion. Subscription costs rose 58% year over year while revenue grew 21%, pressuring margins.
Key Takeaways
- Colorado alleges Michael Cole defrauded 14 investors of $5.2 million through fake AI trading scheme at Sage Income LLC
- UBS forecasts AI capital spending reaching $1 trillion in 2026, $1.4 trillion in 2027, and $1.5 trillion in 2028
- AI-related companies lost $1 trillion in market value in a single session as Nasdaq Composite plunged 5.5%
- Apple is making Siri more agentic with third-party app integration coming in iOS 27.3 and Spring updates
- Jeff Bezos predicts AI-driven productivity could eventually support a three-day work week
- Nothing plans to launch its first AI-native hardware product in December 2026, a screenless productivity tool
- Research from Carnegie Mellon and Microsoft shows overconfidence in AI reduces critical thinking among workers
- ServiceNow spent over $9 billion on acquisitions including Armis ($7.6B) and Veza ($1.2B)
- 46 data center projects worth $170 billion have been cancelled due to opposition, with 10% of planned centers unlikely to be built
- Cole allegedly used investor funds to develop AI software and pay earlier backers in a Ponzi-like scheme
Lakewood radiologist faces $5 million AI investment fraud lawsuit
Colorado alleges that Michael Cole, a Lakewood radiologist, took over $5 million from 14 investors through a fake AI trading scheme. His company Sage Income LLC claimed to use an AI algorithm to trade securities and promised high returns. Bank records show the company lost money every month from November 2019 to December 2024. Cole used new investor money to pay earlier backers in a Ponzi-like pattern. He also transferred some funds into his personal accounts. By February 2025, investors lost more than $3.9 million total.
Colorado files fraud charges against Michael Cole over AI scheme
Colorado Securities Commissioner Tung Chan filed civil fraud charges against Lakewood man Michael Cole. The complaint says Cole defrauded 14 investors of $5.2 million through his company Sage Income LLC. He allegedly used the money for personal expenses, including a $1.2 million payment to a company he controlled. Cole is not licensed to sell securities in Colorado. The case is ongoing and Cole has not commented on the allegations.
Lakewood radiologist sued over alleged AI trading scheme
Michael Cole, a Lakewood radiologist, is accused of running a fraudulent AI investment fund through Sage Income LLC. He reportedly convinced 14 investors to invest $5.2 million through promissory notes. The company claimed its AI software could generate yearly returns between 9% and 15%. Instead, the fund lost money every month for five years. Cole allegedly used fresh investor cash to pay earlier backers. He also owed $1.3 million to former business partners, including family members, from a previous company called Cole Capital LLC.
Complaint filed against Lakewood man for AI investment fraud
Colorado Securities Commissioner Tung Chan filed civil fraud charges against Michael Cole and Sage Income LLC. The complaint says Cole solicited $5.2 million from 14 investors through promissory notes. He claimed the company used proprietary AI software to trade securities for high returns. However, the company had negative returns from November 2019 through December 2024. Cole admitted to investigators that investor funds were used to develop and train the AI software. Bank records also showed he used money to pay earlier investors in a Ponzi-like scheme.
How to invest in AI amid spending concerns
UBS strategist Matthew Carter says investors should spread their AI exposure beyond a few big tech companies. He remains positive about AI's contribution to global equities in 2027. UBS raised its AI capital spending forecasts to $1 trillion in 2026, $1.4 trillion in 2027, and $1.5 trillion in 2028. Investors should review their portfolio concentration and consider diversifying into semiconductors, cloud providers, power companies, and other sectors. Geographic diversification also matters, with Asian and European companies offering potential benefits.
How to invest in AI amid spending concerns
UBS strategist Matthew Carter says investors should spread AI investments beyond a few big tech companies. Rising capital spending has raised questions about returns, with some companies reporting negative cash flow. UBS raised its AI spending forecast to $1 trillion in 2026, $1.4 trillion in 2027 and $1.5 trillion in 2028. Investors should consider semiconductors, cloud providers, power companies and geographic diversification across Asia and Europe.
AI stock sell-off impacts go beyond Wall Street
The recent sell-off in AI and technology stocks has raised concerns about the four-year bull market. Data center spending contributed to 30 percent of US growth in 2025 and 2026, with spending surging 150 percent. Forty-three percent of household wealth is now exposed to the stock market, and the richest 10 percent of Americans account for half of consumer spending. Rising interest rates also increase borrowing costs for AI companies that rely heavily on debt financing.
Wall Street AI trade faces biggest test yet
The AI trade on Wall Street is losing momentum as investors worry about costs, debt and political uncertainty. The Nasdaq Composite plunged 5.5 percent in one of the worst days for tech stocks, with AI-related companies losing $1 trillion in market value in a single session. Over 500 data center projects are under construction in the US, and opposition has already forced cancellation of 46 projects worth $170 billion. Democrats controlling Congress from January could bring tighter regulation on data centers.
Nothing to launch first AI hardware product in December
Nothing is preparing to launch its first AI-native hardware product in December 2026. CEO Carl Pei confirmed the device will have no new screen and cannot be replicated through a mobile app. He described it as a productivity tool that captures useful information from everyday conversations without interrupting the moment. Pei said the industry should focus on making AI useful for productivity tasks before searching for a revolutionary consumer gadget.
Businesses should use applied intelligence not artificial
Businesses should train employees to use AI with applied intelligence rather than relying on it to do all the work. Employees who trust AI too much may stop thinking critically, leading to reduced innovation and competitive disadvantage. Research from Carnegie Mellon University and Microsoft surveyed 319 white-collar workers and found that higher confidence in AI was linked to less critical thinking effort. Managers should encourage employees to question and verify AI output rather than accepting it as correct.
Hyperscale Cloud Providers to Keep AI Investments Steady
An investment bank economist expects hyperscale cloud providers to maintain current AI investment plans in the near term. This comes despite market expectations of tighter U.S. oversight after the Democrats' election win. These tech giants are also major players in the investment-grade bond market. The traditional relationship between credit ratings and bond spreads only partly applies to them.
Who Gets Hit in the Great Data Center Slowdown
Experts say the AI industry's planned 10 trillion dollar data center build-out will face more slowdown than total collapse. Following recent elections, existing and proposed state moratoriums extend to about 40 percent of planned US data center projects. Some developers plan to move to friendlier territories like Florida or foreign countries. Analysts estimate 10 percent of data centers will not happen now, but a national moratorium appears remote.
Apple Racing to Make Siri More Agentic
Apple is working to make Siri able to control third-party apps and perform more complex tasks. Fine-grained control over Apple's own apps is expected with iOS 27.3. Integration with third-party apps like Grubhub and OpenTable is likely coming in the Spring. Apple ultimately wants Siri to become an agent that can handle ongoing tasks, not just one-off requests, possibly as early as next year.
Jeff Bezos Agrees With Three-Day Week in AI Age
Jeff Bezos said AI-driven productivity could eventually allow workers to earn enough with a three-day work week. He painted an optimistic picture of an AI-powered economy with greater wealth and flexibility. Amazon continues to invest billions in data centers and cloud computing for AI demand. Other leaders like Nvidia's Jensen Huang and JPMorgan's Jamie Dimon also predict shorter workweeks in the future.
ServiceNow AI Ambitions Bring 9 Billion Balance Sheet Shift
ServiceNow spent over 9 billion dollars on acquisitions in the first nine months of 2026, shifting from net cash to net debt. Major deals included Armis for about 7.6 billion dollars and Veza for roughly 1.2 billion dollars. The company also acquired four Israeli startups including Sweep and Traceloop. Subscription costs rose 58 percent year over year while revenue grew 21 percent, pressuring margins.
Sources
- Lakewood radiologist took $5 million in ‘Ponzi-like’ AI investment scheme, lawsuit alleges
- Complaint filed against Colorado man for AI-related investment scheme
- Lakewood Radiologist Michael Cole Sued Over AI Scheme
- Complaint Filed Against Lakewood, Colorado, Man for AI-Related Investment Scheme
- How to invest in AI amid AI spending worries?
- How to invest in AI amid AI spending worries?
- Why the AI stock sell-off could matter far beyond Wall Street
- Wall Street’s AI trade faces its biggest test yet
- Nothing to launch its first AI-native hardware product next month: Here’s what to expect as CEO reveals ‘no new screen’
- Business Should Use Applied Intelligence Not Artificial for Competitive Advantage
- Hyperscale Cloud Providers Expected to Keep AI Investment Steady Near Term
- Who Gets Hit in the Great Data Center Slowdown?
- Apple is racing to make Siri more agentic
- Jeff Bezos 'agrees' with three-day-week in AI age; says: Some people will decide, I can support my family by ...
- ServiceNow's AI ambitions come with a $9 billion balance-sheet reversal
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