Bank of America fined $1.2bn for money laundering; OpenAI device found, engineer charged

A Saudi national and former OpenAI engineer, Abdulrahman Alfozan, 35, has been charged after a sophisticated recording device was discovered in an executive meeting room at OpenAI's San Francisco offices. The device, described as a covert audio recorder concealed in toilet paper and plugged into a television's USB port, was found by OpenAI personnel around September 30, 2026. Alfozan was arrested on October 9, 2026, and made his initial court appearance on October 13, facing charges related to the interception of oral communications.

OpenAI utilized its own AI models and internal CCTV footage to identify Alfozan as the individual who allegedly installed the device around September 28. Investigations also revealed that Alfozan, who had been an OpenAI engineer since July 2025, allegedly used a productivity tool to search for internal company information, and a chatbot linked to his spouse reportedly made inquiries about building and hiding recording devices. A second, similar recording device was later found in a bag belonging to Alfozan.

Following the discovery, OpenAI promptly contacted the FBI and terminated Alfozan's employment. While officials emphasized the national security implications of protecting American AI innovation, OpenAI stated there is currently no indication that Alfozan inappropriately accessed or exfiltrated sensitive company data such as model weights, source code, or customer information. If convicted, Alfozan could face up to five years in prison and a $250,000 fine.