Related Federal Cases
Near & MobileFuse Execs Accused of $25M ‘Round Trip’ Fraud
NEW YORK – Federal prosecutors today unsealed an indictment charging three executives with orchestrating a brazen $25 million accounting fraud at data intelligence firm Near Intelligence, Inc. and mobile advertising company MobileFuse LLC. ANIL MATHEWS, RAHUL AGARWAL, and KENNETH HARLAN are accused of a complex “round trip” scheme designed to artificially inflate Near’s revenue and attract investors.
According to the indictment, MATHEWS, the former Chief Executive Officer of Near, and AGARWAL, the company’s ex-Chief Financial Officer, conspired to fraudulently boost Near’s reported revenue. They allegedly funneled inflated payments to MobileFuse, headed by CEO HARLAN, only for MobileFuse to kick the money back to Near. This circular scheme, spanning from 2021 to December 2023, aimed to make Near appear more valuable, especially as it sought a deal with a Special Purpose Acquisition Company (SPAC) to go public.
“As alleged, executives from Near and MobileFuse ran a circular payment scheme to inflate revenue and increase Near’s value,” stated U.S. Attorney Jay Clayton. “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.” The indictment further alleges that MATHEWS and AGARWAL weren’t content with just inflating revenue – they also engaged in separate embezzlement schemes to line their own pockets.
The FBI’s Assistant Director in Charge, Christopher G. Raia, added, “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.” The scheme involved exchanging fake invoices and inflated payments, allowing Near’s revenue from MobileFuse to appear over ten times higher than reality. MobileFuse, meanwhile, “netted” out the fraudulent amounts, paying Near only what was legitimately owed for services rendered. The defendants allegedly knew the revenue being reported was entirely fabricated.
MATHEWS, already under fire, was previously arrested in France and is currently awaiting extradition to the United States. AGARWAL, an Indian citizen and resident, remains at large. HARLAN was arrested today and is scheduled to appear before U.S. Magistrate Judge Robert W. Lehrburger. MATHEWS also faces charges of aggravated identity theft, accused of using stolen identities to create fake invoices to conceal his embezzlement. The total amount of the alleged embezzlement has not been disclosed.
The government alleges that the fraudulent accounting practices resulted in Near overstating its revenue by at least $25 million. This case underscores the relentless pursuit of financial crimes by federal authorities and serves as a stark warning to those who attempt to manipulate the markets for personal gain. The investigation remains ongoing, and further arrests are possible. The United States Attorney’s Office for the Southern District of New York is prosecuting the case.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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