Baba Nadimpalli, the founder and former CEO of SKAEL, Inc., has pleaded guilty to securities fraud and wire fraud in a federal court. The charges relate to misleading investors about the financial health of his company. Nadimpalli was indicted by a grand jury in January 2024.
Nadimpalli established SKAEL in 2016, serving as CEO until July 2022. The San Francisco-based company provided artificial intelligence and automation software for corporate clients. From January 2020 to February 2022, SKAEL raised over $40 million through three financing rounds. During this period, Nadimpalli misled investors with false information regarding revenue and annual recurring revenue (ARR), which is an important metric for potential investors.
In February 2022, SKAEL conducted a Series A preferred stock offering that valued the company at approximately $230 million post-closing. Nadimpalli directed the creation of an electronic data room containing materially false financial documents to attract investment.
United States Attorney Craig H. Missakian and FBI Special Agent Sanjay Virmani announced the plea agreement. Nadimpalli is scheduled for sentencing on September 17, 2025, by Senior U.S. District Judge Charles R. Breyer. He faces up to 20 years in prison and significant fines for each count of fraud.
The case is prosecuted by Assistant U.S. Attorneys Noah Stern and Ilham Hosseini with support from Mark DiCenzo and Lynette Dixon following an FBI investigation. The Securities and Exchange Commission’s San Francisco Regional Office also filed a civil enforcement action against Nadimpalli.
