Matthew Derrick Hudson, the former CEO and founder of Invenia Technical Computing Corporation, a Canadian AI company, has been charged with wire fraud after allegedly deceiving investors to raise over $100 million. The U.S. Department of Justice, led by United States Attorney Craig H. Missakian, announced Hudson’s arrest last week in the Northern District of California, where he appeared in federal court in San Francisco for a detention hearing.
According to the criminal complaint filed on September 18, 2025, Hudson, 42, is accused of misleading investors from 2020 through 2022. Some investors were located in or had representatives in the Northern District of California, while others were based elsewhere in the United States. During this period, Invenia was a private company based in Canada and the United Kingdom, claiming to apply artificial intelligence and machine learning solutions to the North American energy markets.
FBI Acting Special Agent in Charge Matt Cobo confirmed that the investigation involved both U.S. investors and representatives of Invenia in North America.
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Alleged Fabrication of Financial Documents and Misrepresentation
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. He is accused of distributing falsified audited financial statements, invoices, and other financial documents to support these claims.
For example, shortly before Invenia closed its Series B fundraising round, Hudson allegedly sent an audit report that purported to verify Invenia’s 2019 balance sheet and financial statement. This report claimed Invenia had approximately $218 million CAD in cash and approximately $295 million CAD in revenue. However, 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.
Additionally, Hudson allegedly 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 allegedly introduced fake email accounts for an Energy Company 1 employee to representatives of Invenia investors conducting due diligence. He then allegedly instructed a real employee at Energy Company 1 to ignore any outreach from investors. Fabricated invoices and other documents were also sent to investors, including a fake phone number for Energy Company 1 associated with an account allegedly paid for by Hudson.
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Legal Actions and Potential Consequences
Matthew Derrick Hudson was released on bond pending trial and is scheduled to appear in federal court on November 17, 2025, for a status conference before U.S. Magistrate Judge Laurel Beeler. If convicted, he faces a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution, for wire fraud in violation of 18 U.S.C. § 1343. Any sentence would be imposed after consideration of the U.S. Sentencing Guidelines and federal sentencing statute 18 U.S.C. § 3553.
In addition to the criminal charges, the U.S. Securities and Exchange Commission has filed a civil enforcement action in the Northern District of California against Hudson, alleging violations of securities laws. The prosecution is being led by Assistant U.S. Attorney Patrick O’Brien with the assistance of Maryam Beros and Mimi Lam, based on an FBI investigation.
The case has drawn significant attention due to the scale of the alleged fraud and its impact on investors. Matthew Derrick Hudson is presumed innocent until proven guilty beyond a reasonable doubt, and legal proceedings are ongoing.