Dr. Karim Arabi, a former Qualcomm executive, has been found guilty of fraud and money laundering by a federal jury over a scheme involving $180 million. Arabi, who served as vice president of Qualcomm’s Research and Development Department, was prosecuted for developing microchip technology and covertly selling it to Qualcomm through a company, Abreezio, which he established to hide his involvement.
The jury's decision came after less than two days of deliberation following a four-week trial. Evidence indicated that Arabi created false email accounts and impersonated his sister, who was falsely presented as the inventor of the microchip technology. Additionally, she legally changed her last name to distance her connection to Arabi.
Acting U.S. Attorney Andrew Haden emphasized the seriousness of the fraud: “The defendant took advantage of the trust placed in him, lining his pockets with millions by orchestrating a scheme to deceive and then bleed his own employer.” He added, “Today’s jury verdict sends a clear message: In the Southern District of California, fraud has consequences."
FBI San Diego Acting Special Agent in Charge Houtan Moshrefi highlighted that the verdict reinforces accountability for corporate misconduct, saying “With today’s verdict, Dr. Arabi will now face the consequences of this massive fraud."
Special Agent in Charge Tyler Hatcher of IRS Criminal Investigation noted Arabi's breach of trust, remarking that he "executed a scheme to swindle Qualcomm out of $180 million for what was rightfully their own technology."
Before Qualcomm identified the fraud, the company had already paid $150 million to Arabi and his coconspirators. Two other individuals involved, Ali Akbar Shokouhi and Sanjiv Taneja, have pleaded guilty to money laundering and are awaiting sentencing.
The prosecution team consists of Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra, and Eric R. Olah. The case was investigated by the FBI, IRS Criminal Investigation, and the United States Marshals Service.
Dr. Arabi, aged 58, faced charges including wire fraud conspiracy, wire fraud, and conspiracy to launder monetary instruments, carrying a potential sentence of up to 20 years in prison and substantial fines.
