Baba Nadimpalli, the founder and former CEO of SKAEL, Inc., admitted guilt in a federal court to securities fraud and wire fraud. The charges stem from a scheme where Nadimpalli misled investors about SKAEL’s financial status, including revenue and annual recurring revenue (ARR).
Nadimpalli, 42, an Australian citizen formerly based in San Francisco, was indicted on January 17, 2024. He founded SKAEL in 2016 and led the company until July 2022. SKAEL provided artificial intelligence software solutions for corporate clients to automate routine tasks through “Digital Employees.”
Between January 2020 and February 2022, SKAEL secured over $40 million through three financing rounds. To attract investments, Nadimpalli reportedly falsified customer data and sales figures. He overstated ARR by claiming subscriptions from non-existent customers and representing terminated subscriptions as active.
In February 2022, during a Series A preferred stock offering that valued SKAEL at $230 million post-closing, Nadimpalli created an electronic data room for potential investors. This data room contained false information regarding ARR and customer details.
He also admitted to providing incorrect bank account information showing non-existent customer payments.
United States Attorney Craig H. Missakian and FBI Special Agent Sanjay Virmani announced these developments.
Nadimpalli is set to be sentenced on September 17, 2025, by Senior U.S. District Judge Charles R. Breyer. The maximum penalties include up to 20 years in prison for each count of securities fraud and wire fraud along with substantial fines.
Assistant U.S. Attorneys Noah Stern and Ilham Hosseini are leading the prosecution with support from Mark DiCenzo and Lynette Dixon following an FBI investigation. The U.S. Attorney’s Office acknowledged the assistance of the SEC’s San Francisco Regional Office which has filed a civil action against Nadimpalli.
