According to the indictment, SKAEL raised more than $40 million in three rounds of funding between January 2020 and approximately February 2022. Nadimpali allegedly made false claims about SKAEL’s revenue, customer base and other financial information in order to induce potential and existing investors to invest.
Around February 2022, SKAEL raised approximately $30 million in a Series A preferred stock offering, valuing the company at approximately $230 million.
Nadimpali allegedly created an electronic data room that contained materially false information about the company for potential investors in connection with the company’s initial public offering.
A representative for the company previously told VentureBeat that Google is one of its clients. Google did not immediately respond to a request for comment.
Nadinpalli has been charged with three counts of securities fraud and seven counts of wire fraud and faces up to 20 years in prison and a fine if convicted.
The announcement was made by United States Attorney Ismail J. Ramsey and Special Agent in Charge of the Federal Bureau of Investigation Robert K. Tripp. The case is being handled by the Corporate and Securities Fraud Section of the United States Attorney’s Office for the Northern District of California.
