Harish Chidambaran

Puthugramam "Harish" Chidambaran
Born:	c. 1969 (age 57 at time of arrest)
Charges:	Continuing financial crimes enterprise (alleged); Conspiracy to commit securities fraud (alleged); Securities fraud (alleged); Conspiracy to commit wire fraud (alleged); Wire fraud (alleged)
Sentence:
Facility:
Status:	Charged; awaiting trial

Puthugramam "Harish" Chidambaran is an American technology executive and the founder and former chief executive officer of iLearningEngines, Inc., a Nasdaq-listed company that marketed artificial-intelligence business-automation software. On April 17, 2026, federal prosecutors in Brooklyn unsealed a ten-count indictment charging Chidambaran and the company's former chief financial officer, Sayyed Farhan Ali "Farhan" Naqvi, with running a continuing financial crimes enterprise and with multiple counts of securities fraud and wire fraud.

The indictment alleges that, beginning around January 2019, Chidambaran and Naqvi inflated iLearningEngines' reported revenue by hundreds of millions of dollars through sham contracts with entities they and others controlled. Prosecutors allege that at least 90 percent of the company's roughly $421 million in reported 2023 revenue was fabricated, and that the defendants moved more than $144 million in a "round-trip" cycle to make fake customer payments look real.

Chidambaran has been charged, not convicted. Under United States law he is presumed innocent unless and until proven guilty beyond a reasonable doubt. He was arrested at his home in Potomac, Maryland, and the case is pending in the United States District Court for the Eastern District of New York. The allegations described below are drawn from the indictment and from statements by prosecutors. They have not been tested at trial.

Background

Chidambaran founded iLearningEngines and led it as chief executive officer through its growth, its public listing, and its collapse. He was 57 years old at the time of his arrest in April 2026.

The company was based in Bethesda, Maryland. It described itself as a provider of AI-driven "learning automation" and information-intelligence tools sold to large enterprise customers. Public materials tied to the company claimed it served more than 1,000 enterprise end customers and roughly 4.4 million licensed users.

Naqvi, the co-defendant, served as the company's chief financial officer. He was 44 at the time of his arrest in San Jose, California, on the same day as Chidambaran.

iLearningEngines

iLearningEngines became a public company in April 2024 through a merger with a special purpose acquisition company, Arrowroot Acquisition Corp. The combination closed on April 16, 2024, and the stock began trading on the Nasdaq the next day. The deal carried an implied enterprise value of roughly $1.4 billion.

The public listing did not last long. On August 29, 2024, the short-seller Hindenburg Research published a report titled "An Artificial Intelligence SPAC With Artificial Partners And Artificial Revenue." The report claimed that the bulk of iLearningEngines' revenue and expenses ran through an undisclosed related party it called a "Technology Partner," and that much of the reported revenue did not exist. It noted that the company's sole Indian subsidiary reported about $853,471 in revenue for its latest fiscal year, against a claimed Indian run rate of $216 million.

The stock dropped sharply after the report. iLearningEngines disputed the allegations at the time. The company filed for Chapter 11 bankruptcy protection in Delaware on December 20, 2024, then converted to a Chapter 7 liquidation on March 6, 2025, after it failed to secure financing.

The Allegations

The indictment covers conduct from about January 2019 through April 2025. Prosecutors allege that Chidambaran and Naqvi, working with unnamed co-conspirators, ran iLearningEngines through what the U.S. Attorney's office called "systemic fraud," inflating revenue at times by hundreds of millions of dollars a year.

The core mechanic alleged in the indictment is "round-tripping." According to prosecutors, the company took in money from lenders and investors, sent that money to purported customers, and then received the same money back, booking the return as customer revenue. The indictment alleges that the aggregate value of these round-trip transactions topped $144 million. An associate of Chidambaran is alleged to have set up and opened bank accounts in the names of several of the purported customers.

Prosecutors allege that the sham contracts ran into the tens of millions of dollars in some years and that at least 90 percent of the roughly $421 million in revenue iLearningEngines reported for 2023 was fabricated. The company's filings, the indictment alleges, also overstated its customer base and its number of licensed users.

The indictment also describes large personal benefits. In connection with the company going public, Chidambaran is alleged to have received more than $500 million worth of iLearningEngines common stock, and later approximately $12.5 million in restricted stock units. Naqvi is alleged to have received common stock worth about $11.2 million, and the company is alleged to have paid nearly $4.5 million in cash to cover his tax liabilities.

These are allegations. The government bears the burden of proving each charge beyond a reasonable doubt, and the defendants are presumed innocent.

Charges

The grand jury returned a ten-count indictment, which was unsealed in federal court in Brooklyn on April 17, 2026. The charges against Chidambaran and Naqvi include:

• Operating a continuing financial crimes enterprise
• Conspiracy to commit securities fraud
• Securities fraud
• Conspiracy to commit wire fraud
• Wire fraud

The continuing financial crimes enterprise count carries the heaviest exposure. If a defendant is convicted of that charge, it carries a mandatory minimum term of 10 years in prison and a maximum term of life.

Chidambaran was arrested on the morning of April 17, 2026, at his home in Potomac, Maryland. Naqvi was arrested the same day in San Jose, California. The case is being prosecuted by the U.S. Attorney's Office for the Eastern District of New York. Joseph Nocella Jr., the United States Attorney for that district, said in announcing the charges that the defendants misrepresented the company's financial health to exploit growing investor interest in artificial intelligence.

The criminal case followed civil scrutiny of the company. Investors filed class-action complaints accusing iLearningEngines and certain officers of securities fraud, and the company had disclosed that the Securities and Exchange Commission opened an inquiry into its accounting. Those proceedings name Chidambaran and Naqvi among the officers who signed off on the public statements at issue.

As of June 2026, Chidambaran is awaiting trial. No conviction has been entered against him.

Frequently Asked Questions

Q: Who is Harish Chidambaran?

Puthugramam "Harish" Chidambaran is the founder and former chief executive officer of iLearningEngines, Inc., a Nasdaq-listed company that sold artificial-intelligence business-automation software. In April 2026 he was charged in a federal indictment in Brooklyn with securities fraud and related offenses. He has been charged, not convicted, and is presumed innocent.

Q: What is Harish Chidambaran charged with?

A ten-count federal indictment charges Chidambaran with operating a continuing financial crimes enterprise, conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud. Prosecutors allege he and the company's former chief financial officer inflated iLearningEngines' revenue through sham contracts. The charges are allegations that have not been proven at trial.

Q: Has Harish Chidambaran been convicted?

No. Chidambaran has been charged but not convicted. He is presumed innocent unless and until the government proves the charges beyond a reasonable doubt. As of June 2026 the case is pending and he is awaiting trial.

Q: What did prosecutors say iLearningEngines did?

Prosecutors allege that at least 90 percent of the roughly $421 million in revenue the company reported for 2023 was fabricated through sham contracts with purported customers. The indictment alleges the defendants "round-tripped" more than $144 million, sending money out to fake customers and receiving it back to make the payments look like real revenue. These are allegations.

Q: What is round-tripping?

Round-tripping is a fraudulent accounting practice in which a company moves money out to a counterparty and then receives the same money back, recording the return as legitimate revenue. Prosecutors allege iLearningEngines used this method to manufacture the appearance of customer sales.

Q: When was Harish Chidambaran arrested?

Chidambaran was arrested on the morning of April 17, 2026, at his home in Potomac, Maryland. The company's former chief financial officer, Sayyed Farhan Ali Naqvi, was arrested the same day in San Jose, California. A ten-count indictment was unsealed in federal court in Brooklyn that day.

Q: What happened to iLearningEngines?

iLearningEngines went public in April 2024 through a merger with Arrowroot Acquisition Corp. In August 2024, short-seller Hindenburg Research published a report questioning its revenue. The stock fell sharply. The company filed for Chapter 11 bankruptcy in December 2024 and converted to a Chapter 7 liquidation in March 2025.

Q: What penalty does Harish Chidambaran face if convicted?

The most serious charge, operating a continuing financial crimes enterprise, carries a mandatory minimum of 10 years in prison and a maximum of life if a defendant is convicted of it. No conviction has been entered, and the presumption of innocence applies.