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Founder of SKAEL, Inc. Pleads Guilty to Defrauding Investors of Over $40 Million
San Francisco, CA – Baba Nadimpalli, the 42-year-old founder and former CEO of SKAEL, Inc. (SKAEL), has pleaded guilty to one count of securities fraud and one count of wire fraud in connection with a massive scheme to defraud investors.
According to court documents, Nadimpalli, a citizen of Australia who previously resided in San Francisco, defrauded investors out of over $40 million by providing false information about SKAEL’s revenue, annual recurring revenue (ARR), and customer adoption. SKAEL, a software-as-a-service company, provided corporate clients with automation software to assist with mundane tasks.
Between January 2020 and February 2022, SKAEL raised over $40 million in three rounds of financing. In order to induce prospective and existing investors to invest, Nadimpalli provided false information regarding SKAEL’s customer and sales information, revenue, and ARR. In or around 2021, Nadimpalli provided materially false information to investors, including representing that SKAEL was receiving ARR from certain companies that did not subscribe to its software and services.
In or around February 2022, SKAEL raised approximately $30 million in a Series A preferred stock offering that valued the company at approximately $230 million after closing. Nadimpalli directed the creation of an electronic data room for potential investors that contained false information about the company’s ARR and customers.
Nadimpalli further 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. He faces a maximum penalty of 20 years in prison and a $5 million fine for the count of securities fraud, and 20 years in prison and a $250,000 fine for the count of wire fraud.
Nadimpalli is scheduled to be sentenced by Senior U.S. District Judge Charles R. Breyer on September 17, 2025. The U.S. Attorney’s Office and the FBI thank the San Francisco Regional Office of the Securities and Exchange Commission, which also filed a civil enforcement action against Nadimpalli in the Northern District of California.
Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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