Ismail J. Ramsey, U.S. Attorney | U.S. Attorney for the Northern District of California
Baba Nadimpalli, the founder and former CEO of SKAEL, Inc., has pleaded guilty to securities fraud and wire fraud in a federal court. The charges stem from misleading investors about the company's financial health. Nadimpalli, 42, an Australian citizen who lived in San Francisco, was indicted by a grand jury on January 17, 2024.
Nadimpalli founded SKAEL in 2016 and led the company until July 2022. The San Francisco-based firm provided artificial intelligence and automation software to businesses. From January 2020 to February 2022, SKAEL raised over $40 million through three financing rounds. Nadimpalli misled investors with false information about SKAEL's revenue and annual recurring revenue (ARR), a key metric for investors.
In early 2022, SKAEL secured approximately $30 million in a Series A stock offering that valued the company at $230 million. Nadimpalli provided potential investors with false data about ARR and customer information. He also gave an investor and an employee incorrect bank account details.
The announcement was made by U.S. Attorney Craig H. Missakian and FBI Special Agent Sanjay Virmani. Nadimpalli is set to be sentenced on September 17, 2025, by Senior U.S. District Judge Charles R. Breyer. He faces up to 20 years in prison for each count of fraud and significant fines.
Assistant U.S. Attorneys Noah Stern and Ilham Hosseini are handling the prosecution with help from Mark DiCenzo and Lynette Dixon following an FBI investigation. The Securities and Exchange Commission's San Francisco office has also filed a civil enforcement action against Nadimpalli.
