Former iLearningEngines Executives Indicted in Multi-Year Revenue Fraud Scheme
Two former iLearningEngines executives, CEO Puthugramam Chidambaran and CFO Sayyed Farhan Ali Naqvi, were indicted in Brooklyn on charges including operating a continuing financial crimes enterprise, securities fraud, and wire fraud for allegedly fabricating customers and revenue to mislead investors and lenders as the NASDAQ-listed company went public; investigators allege sham contracts, round-tripping of funds totaling over $144 million, and a collapse into bankruptcy after a rapid rise to a $1.5 billion market cap. Both were arrested and will appear in federal court in different districts, and, if convicted on the enterprise count, face a minimum of 10 years to life in prison.