Who was charged in the Mobileum Inc. fraud case?

Andrew Warner, Mobileum's former chief financial officer, and Kishore Vangipuram, the company's former chief of delivery, have been charged.

What was the Mobileum Inc. sale value?

Mobileum Inc. was sold for $915 million in a private equity deal.

What were the alleged methods used to inflate Mobileum's value?

The executives allegedly manipulated employee billing for pending projects to appear closer to completion, creating fake revenue numbers.

Home / Crime and Justice / Telecom Execs Charged in $915M Fraud Scheme

Telecom Execs Charged in $915M Fraud Scheme

18 Feb

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Summary

Two former Mobileum executives face fraud charges.
They allegedly inflated company value for a $915 million sale.
Executives pocketed over $10 million from the deal.

Telecom Execs Charged in $915M Fraud Scheme

Former Mobileum Inc. executives Andrew Warner and Kishore Vangipuram face fraud charges for their alleged role in artificially inflating the company's value. This manipulation occurred during the 2022 sale of the telecom software firm for $915 million.

Prosecutors claim Warner and Vangipuram falsely represented pending projects as nearly complete, generating fraudulent revenue figures. This tactic allegedly enabled them to pocket over $10 million from the transaction. Mobileum, which provided data analytics and network solutions globally, filed for bankruptcy in 2024.

Warner, the former CFO, surrendered to authorities and was released on bond, while Vangipuram, the former chief of delivery, was arrested at San Francisco International Airport. They are charged with securities fraud, wire fraud, and conspiracy, each carrying significant prison terms.

The acquirer, H.I.G. Capital, reportedly discovered the fraud after the sale, which was based on inflated revenue and earnings projections. Audax Group, the seller, has denied knowledge of any wrongdoing.

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