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Baba Nadimpalli, Founder of SKAEL, Pleads Guilty to Securities and Wire Fraud Charges
SAN FRANCISCO – In a shocking turn of events, Baba Nadimpalli, the founder and former Chief Executive Officer of SKAEL, Inc., pleaded guilty to one count of securities fraud and one count of wire fraud in federal court yesterday.
According to court documents, Nadimpalli, 42, a citizen of Australia who previously resided in San Francisco, engaged in a scheme to defraud investors by misleading them about SKAEL’s revenue, annual recurring revenue (ARR), and other financial and sales information.
The scheme, which took place from January 2020 until about February 2022, involved Nadimpalli providing false information to prospective and existing investors in order to induce them to invest. This included representing that SKAEL was receiving ARR from certain companies that did not subscribe to its software and services, overstating ARR from certain customers who were SKAEL customers, and representing that customers who had terminated their subscriptions were current customers with ARR.
In or around February 2022, SKAEL raised approximately $30 million in a Series A preferred stock offering that valued SKAEL at approximately $230 million after closing. Nadimpalli directed the creation of an electronic data room for potential investors that contained materially false information about the company’s ARR and customers, as well as false financial statements and an investor presentation that contained materially false information about the company’s ARR, revenue, and customer adoption.
Nadimpalli also admitted to providing an investor and a financial employee with false bank account information that included purported customer payments that had not actually been deposited.
The guilty plea comes after Nadimpalli was indicted by a federal grand jury on January 17, 2024. He is scheduled to be sentenced by Senior U.S. District Judge Charles R. Breyer on September 17, 2025, and faces a maximum penalty of 20 years in prison and a $5 million fine for the count of securities fraud, as well as 20 years in prison and a $250,000 fine for the count of wire fraud.
The investigation into Nadimpalli’s scheme was conducted by the FBI, with the assistance of the Securities and Exchange Commission. Assistant U.S. Attorneys Noah Stern and Ilham Hosseini are prosecuting the case.
The case serves as a reminder of the importance of transparency and accuracy in financial dealings, and the serious consequences that can result when these principles are ignored.
Baba Nadimpalli, Securities and Wire Fraud, California 2025: Mandatory Facts
Defendant/Respondent: Baba Nadimpalli
Criminal Charges: One count of securities fraud and one count of wire fraud
City and State: San Francisco, California
Date: January 17, 2024 (indictment) and September 17, 2025 (sentencing)
Sentence or Outcome: Pleaded guilty, scheduled to be sentenced on September 17, 2025
Dollar Amounts: $40 million (raised in three rounds of financing), $30 million (raised in Series A preferred stock offering), and $230 million (valuation of SKAEL after closing)
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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