A former Qualcomm vice president has been convicted of fraud and money laundering for orchestrating a $180 million scheme that involved concealing ownership of a tech startup, the U.S. Attorney’s Office for the Southern District of California announced Tuesday.
Dr. Karim Arabi, 58, of San Diego, was found guilty of defrauding Qualcomm by secretly developing microchip technology while employed as the company’s vice president of the Research and Development Department. Arabi sold this technology to Qualcomm through a front business he controlled, Abreezio.
Arabi created Abreezio to market the microchip technology he invented while working at Qualcomm—technology that, according to his employment agreement, belonged to the company. He concealed his involvement by acting as the company’s shadow CEO, selecting its name, directing operations, and communicating under fake email aliases, the U.S. Attorney’s Office said.
In addition to these deceptive tactics, Arabi impersonated his sister, Sheida Alan, using fake emails and documents to present her as the founder and inventor of the company, despite her lack of involvement. Sheida legally changed her surname from “Arabi” to “Alan” in 2015, which further obscured her connection to the defendant before Qualcomm acquired Abreezio.
Qualcomm paid $150 million for the technology before uncovering the fraud, including nearly $92 million to Arabi’s sister. Arabi then laundered the proceeds through international real estate investments and shell companies while concealing his involvement.
The office confirmed that two co-defendants, Ali Akbar Shokouhi and Sanjiv Taneja, have pleaded guilty and are awaiting sentencing later this year.
