Baba Nadimpalli, the founder and former CEO of San Francisco-based artificial intelligence startup SKAEL Inc., is facing serious charges for allegedly defrauding investors out of millions. Federal prosecutors have charged Nadimpalli with securities and wire fraud, accusing him of providing false financial information to mislead investors.
Nadimpalli, an Australian citizen, founded SKAEL in 2016, marketing the company as a provider of “digital employees” — AI-powered automation software aimed at helping corporate clients with time-consuming, repetitive tasks. He led the company until July 2022. However, an indictment filed on January 17, which was unsealed this week, reveals that Nadimpalli allegedly manipulated financial and sales data to inflate the company’s success, deceiving investors.
According to the indictment, Nadimpalli used exaggerated claims about SKAEL’s revenue and performance to secure significant investment, costing investors millions of dollars. Now facing federal charges, the 41-year-old could face severe penalties if convicted.
This case highlights the growing concerns around fraud in the AI startup sector, emphasizing the need for investors to exercise caution when assessing new ventures.
