Baba Nadimpalli, Securities & Wire Fraud, California 2024

A San Francisco-based entrepreneur has been charged with securities and wire fraud in connection with his company SKAEL.

Baba Nadimpalli, the founder and former Chief Executive Officer of SKAEL, Inc., was indicted by a federal grand jury on three counts of securities fraud and seven counts of wire fraud.

The indictment alleges that Nadimpalli made false claims to prospective and existing investors about SKAEL’s revenue and annual recurring revenue (ARR), as well as customer and sales information.

According to the indictment, Nadimpalli provided materially false information to investors, including representing that SKAEL was receiving ARR from certain companies that did not subscribe to SKAEL’s software and services, overstating ARR from certain customers, and representing that customers who had terminated their SKAEL subscriptions were current customers with ARR.

The indictment also alleges that in or around February 2022, SKAEL raised approximately $30 million in a Series A preferred stock offering, which valued SKAEL at approximately $230 million after closing.

Nadimpalli is charged with three counts of securities fraud, which carries a maximum sentence of 20 years in prison and a fine of $5,000,000. He is also charged with seven counts of wire fraud, which carries a maximum sentence of 20 years in prison and a fine of $250,000.

Nadimpalli is presumed innocent unless and until proven guilty.

The case is being handled by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California.

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