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Tech CEO accused of running $420M AI business scam

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by Sean Noone - 04/17/26 8:47 PM ET

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by Sean Noone - 04/17/26 8:47 PM ET

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(NewsNation) — A tech CEO accused of running a company that claimed to provide AI-driven business solutions has been indicted on 10 counts for multiple financial crimes.

Puthugramam “Harish” Chidambaran, the founder and former CEO of iLearning, and CFO Sayyed Farhan Ali “Farhan” Naqvi are accused of running a continuing financial crimes enterprise, conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud and wire fraud.

According to the U.S. Justice Department, iLearning billed itself as a company that could “generate and infuse insights in the flow-of-work to drive mission critical business outcomes.”

The department alleges that iLearning claimed to earn revenue by selling licenses for its platforms, reporting more than $420 million in revenue in 2023. iLearning became a publicly traded company in 2024.

iLearning, according to the Justice Department, “fabricated virtually all its customer relationships and revenues.”

“As alleged, the defendants exploited investor excitement over the AI boom and presented a rosy financial outlook to investors and lenders that was built on lies. While the two defendants pitched iLearning as a way to revolutionize training and education through AI, the truly artificial part of the defendants’ story was iLearning’s customers and revenues,” U.S. Attorney Joseph Nocella Jr. said in a news release. “Our Office is committed to protecting investors and holding accountable corporate executives who undermine the integrity of our financial markets for personal gain.”

The FBI’s recent Internet Crime Report detailed over 22,000 complaints about AI-related scams last year, with total losses exceeding $893 million.

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