Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Federal prosecutors in New York have charged three executives from data intelligence and mobile advertising companies with conspiracy and securities fraud. The indictment alleges that Anil Mathews, former CEO of Near Intelligence, Inc., Rahul Agarwal, former CFO of Near, and Kenneth Harlan, CEO of MobileFuse LLC, participated in a scheme to fraudulently inflate Near’s revenue by about $25 million through a series of “round trip” transactions between the two companies.
Mathews and Agarwal are also accused of wire fraud related to separate embezzlement schemes involving company funds. Mathews faces an additional charge of aggravated identity theft for allegedly using others’ identities to create fake invoices as part of his embezzlement.
Mathews was previously arrested in France after leaving the United States during the investigation. U.S. authorities are seeking his extradition. Agarwal remains at large in India. Harlan was arrested earlier today and is scheduled to appear before U.S. Magistrate Judge Robert W. Lehrburger.
“As alleged, executives from Near and MobileFuse ran a circular payment scheme to inflate revenue and increase Near’s value,” said 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.”
“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,” said FBI Assistant Director in Charge Christopher G. Raia. “These defendants allegedly manipulated their executive positions within their respective companies to create a mirage of financial success and attract prospective buyers. The FBI is determined to apprehend any individual who relies on fraudulent misrepresentations to improve their economic portfolio.”
According to court documents unsealed in Manhattan federal court, from 2021 through December 2023 the defendants caused Near Intelligence to overstate its revenue by executing transactions with MobileFuse that lacked economic substance. These transactions were intended in part to make Near appear more attractive for acquisition by a Special Purpose Acquisition Company (SPAC) ahead of its public listing.
The indictment claims that senior executives at both firms exchanged fake invoices along with inflated payments so that Near could report higher revenue figures than it actually earned from legitimate business activity with MobileFuse. At times these practices inflated reported revenues by up to 28 percent—especially prior to Near going public—and were relied upon by the SPAC evaluating whether or not to acquire the company.
The fraudulent accounting continued after Near became a public company listed on Nasdaq in March 2023, according to prosecutors. By October 2023, less than nine months after merging with the SPAC, Near announced concerns about overstated revenues and advised investors not to rely on its financial statements; it filed for bankruptcy that December.
In addition to orchestrating round-trip payments between the companies, Mathews and Agarwal are accused of enriching themselves through embezzlement schemes involving hundreds of thousands or millions diverted from corporate accounts for personal benefit—including luxury home rent payments and transfers through Singaporean entities owned by them or other executives.
Mr. Clayton commended the FBI’s efforts as well as support from the U.S. Securities and Exchange Commission (SEC). The Justice Department’s Office of International Affairs is handling extradition matters related to this case.
Assistant U.S. Attorneys Nicholas Chiuchiolo and Allison Nichols are prosecuting this matter under the Securities and Commodities Fraud Task Force.
All charges outlined in the indictment remain allegations; all defendants are presumed innocent unless proven guilty.
