In a significant development for the tech industry, three high-ranking officials from data intelligence and mobile advertising firms have been indicted on charges linked to an alleged accounting fraud scheme. The U.S. Attorney for the Southern District of New York, Jay Clayton, and FBI Assistant Director Christopher G. Raia, announced the charges against Anil Mathews, Rahul Agarwal, and Kenneth Harlan.
The executives from Near Intelligence, Inc. and MobileFuse LLC are accused of artificially inflating Near's revenue by approximately $25 million through deceptive round-trip transactions, and the scheme was purportedly designed to make Near more appealing to potential acquirers, including a Special Purpose Acquisition Company (SPAC), according to a press release from the U.S. Attorney's Office. Harlan, former CEO of MobileFuse, was taken into custody, whereas charges against Mathews, Near's CEO, follow his earlier arrest in France, with the U.S. seeking his extradition, and Agarwal remains at large.
As alleged by prosecutors, the scheme involved Near making inflated payments to MobileFuse, which were then returned to Near, artificially inflating its revenue figures. The indictment states that these transactions occurred between May 2021 and September 2023 and resulted in a significant misrepresentation of Near's actual financial condition.
FBI’s Raia highlighted the defendants' alleged abuse of executive authority for personal benefit and the manipulation of revenue to create a misleading portrayal of financial performance. "These defendants allegedly manipulated their executive positions within their respective companies to create a mirage of financial success and attract prospective buyers," Raia stated in the press release. The charges also include separate embezzlement allegations, with Mathews accused of using fraudulent invoices to cover personal expenses, and Agarwal allegedly transferring company funds to a business he controls in Singapore.
The case has now entered the judicial process, with the indictment unsealed and publicly disclosed. While the charges currently remain allegations, the defendants could face significant penalties if found guilty.
