Federal prosecutors in New York have charged three executives from data intelligence and mobile advertising companies with conspiracy and securities fraud. The indictment, unsealed Thursday, accuses Anil Mathews and Rahul Agarwal—former CEO and CFO of Near Intelligence, Inc.—and Kenneth Harlan, CEO of MobileFuse LLC, of orchestrating a scheme to inflate Near’s revenue by about $25 million through a series of circular transactions between the two companies.
According to the U.S. Attorney for the Southern District of New York, Jay Clayton, Mathews and Agarwal allegedly arranged for Near to make inflated payments to MobileFuse. MobileFuse would then return the funds to Near, allowing Near to record these returns as legitimate revenue. “As alleged, executives from Near and MobileFuse ran a circular payment scheme to inflate revenue and increase Near’s value,” said U.S. Attorney Jay Clayton. “Our investors, businesses and employees depend on the integrity of our capital markets. Market integrity is one of America’s great competitive advantages, and this Office will hold those who undermine that essential integrity to account.”
The indictment further alleges that Mathews and Agarwal also embezzled company funds for personal use. Mathews is accused of using fake invoices created with stolen identities to disguise payments made for personal expenses such as rent on a luxury home in Laguna Beach, California. Agarwal allegedly transferred more than $1 million from Near into a Singaporean company he owned.
FBI Assistant Director in Charge Christopher G. Raia commented on the case: “These defendants not only allegedly recycled more than $25 million through each other’s businesses, but two of them also stole even more funds to maintain their personal lifestyles,” Raia said. “These defendants allegedly manipulated their executive positions within their respective companies to create a mirage of financial success and attract prospective buyers. The FBI is determined to apprehend any individual who relies on fraudulent misrepresentations to improve their economic portfolio.”
Court documents state that the fraudulent activity began before Near became a public reporting company in 2023. The intent was partly to make Near appear more attractive for acquisition by a Special Purpose Acquisition Company (SPAC). After going public via SPAC merger in March 2023, it was later revealed that revenue had been overstated; by October 2023, Near announced its financial statements could not be relied upon and filed for bankruptcy in December 2023.
Mathews was arrested in France after fleeing during the investigation; his extradition is being sought by U.S authorities. Agarwal remains at large in India while Harlan was arrested Thursday morning in New Jersey.
The Justice Department’s Office of International Affairs is managing extradition proceedings related to this case.
The prosecution is being handled by Assistant U.S. Attorneys Nicholas Chiuchiolo and Allison Nichols from the Securities and Commodities Fraud Task Force.
All charges are allegations at this stage; the defendants are presumed innocent unless proven guilty.
