Two former senior executives of the Silicon Valley telecom company Mobileum, Inc. have been charged in connection with an alleged accounting fraud scheme that purportedly inflated the company’s financial value. The indictment, announced by the U.S. Attorney for the Southern District of New York, Jay Clayton, names Andrew Warner, former CFO, and Kishore Vangipuram, former Chief of Delivery, according to the U.S. Attorney’s Office.
The alleged fraud was discovered prior to Mobileum’s 2022 sale to an investment firm, which valued the company at $915 million. Following the discovery of the alleged misconduct, Mobileum filed for bankruptcy in 2024. Prosecutors claim that the executives manipulated financial records, which they say harmed investors, creditors, and employees.
U.S. Attorney Jay Clayton stated that Andrew Warner and Kishore Vangipuram allegedly manipulated Mobileum’s financial metrics to secure a higher sale price for the company. The FBI, through Assistant Director in Charge James C. Barnacle, Jr., noted that the executives are accused of exaggerating the company’s financial performance using altered billable hours and invoices, which allegedly resulted in nearly one billion dollars being misrepresented to the investment firm.
Investigations indicate that Warner and Vangipuram allegedly altered revenue records and encouraged employees to adjust billable hours, presenting the company as more financially successful than it was. Prosecutors claim they also submitted invoices for milestones that were not achieved, which was part of a broader effort to conceal the company’s financial situation from potential buyers and clients. After these practices were uncovered and Mobileum’s true financial condition became known, the company subsequently filed for bankruptcy.
Warner, from Morgan Hill, California, and Vangipuram, from Pleasanton, California, face charges including conspiracy to commit securities and wire fraud, as well as securities fraud and wire fraud. The potential penalties for these offenses include up to five years for conspiracy and up to twenty years each for securities and wire fraud, with the final sentences determined by the presiding judge. The case is being handled by the Office’s Securities and Commodities Fraud Task Force, with Assistant U.S. Attorneys Peter J. Davis, Alexander Li, and Samuel P. Rothschild leading the prosecution. The proceedings are taking place in the Southern District of New York.
