NEW YORK - The former chief executive and chief financial officer of iLearningEngines, an AI-driven business automation company, have been indicted on charges of defrauding investors and lenders. Prosecutors allege they fabricated nearly all of the company's customer relationships and revenue.
Former CEO Puthugramam Chidambaran and ex-CFO Sayyed Farhan Ali Naqvi face charges including securities fraud, wire fraud, and conspiracy. These charges stem from allegations that they created fake contracts and used circular money transfers to manufacture revenue.
At least 90% of iLearning's reported $421 million in revenue for 2023 was allegedly fabricated. The company, which claimed to revolutionize training and education through AI, went public in April 2024. Its market value on the Nasdaq once peaked at $1.5 billion before a short-seller raised doubts about its reported revenue.
iLearningEngines filed for bankruptcy protection in December 2024 and is now in liquidation.