ANIL MATHEWS, Accounting Fraud, New York 2023

Executives of Data Intelligence and Mobile Advertising Companies Charged in Connection With Accounting Fraud Scheme

Two high-ranking executives from Near Intelligence, Inc. and MobileFuse LLC have been charged with conspiracy and securities fraud for their alleged roles in an accounting fraud scheme that saw Near's revenue inflated by approximately $25 million.

ANIL MATHEWS, the former Chief Executive Officer of Near Intelligence, Inc., and RAHUL AGARWAL, the former Chief Financial Officer, along with KENNETH HARLAN, the Chief Executive Officer of MobileFuse LLC, have been charged with conspiracy and securities fraud in connection with the scheme.

According to the indictment, the defendants caused Near to fraudulently inflate its reported revenue by $25 million through a series of 'round trip' transactions with MobileFuse. The scheme involved exchanging fake invoices along with inflated payments that allowed Near's revenue from MobileFuse's business to appear more than 10 times higher than it actually was.

MATHEWS and AGARWAL are also charged with wire fraud in connection with their separate schemes to embezzle money from Near, and MATHEWS is charged with aggravated identity theft in connection with his appropriation of the identities of others that he used to generate fake invoices to disguise his embezzlement.

MATHEWS was previously arrested in connection with these charges in France, where he fled during the pendency of this criminal investigation. The United States is seeking his extradition. AGARWAL, an Indian citizen and resident, is at large. HARLAN was arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger.

As alleged, executives from Near and MobileFuse ran a circular payment scheme to inflate revenue and increase Near's value. Our investors, businesses and employees depend on the integrity of our capital markets. Market integrity is one of America's great competitive advantages, and this Office will hold those who undermine that essential integrity to account.

These defendants not only allegedly recycled more than $25 million through each other's businesses, but two of them also stole even more funds to maintain their personal lifestyles. These defendants allegedly manipulated their executive positions within their respective companies to create a mirage of financial success and attract prospective buyers. The FBI is determined to apprehend any individual who relies on fraudulent misrepresentations to improve their economic portfolio.

Source: https://www.justice.gov/usao-sdny/pr/executives-data-intelligence-and-mobile-advertising-companies-charged-connection