SEC Files Fraud Charges Against Former Near Intelligence Executives and MobileFuse

USA: SEC Files Fraud Charges Against Former Near Intelligence Executives and MobileFuse

On January 27, 2026, the U.S. Securities and Exchange Commission announced civil charges against two former senior executives of the now‑defunct data‑intelligence firm Near Intelligence, Inc., and the New York‑based company MobileFuse, LLC. The complaint alleges a coordinated effort to inflate Near’s reported revenue and to conceal related misstatements.

Alleged Revenue‑Inflation Scheme

The SEC’s filing states that from May 2021 through September 2023, the former chief executive officer, Anil Mathews, and former chief financial officer, Rahul Agarwal, engaged in a round‑trip accounting arrangement that overstated Near’s revenue by an average of 27 percent for fiscal years 2021 and 2022 and for the first two quarters of 2023. The scheme, which relied on inflated invoices exchanged between Near and MobileFuse, resulted in at least $37.3 million of improperly reported revenue.

Role of MobileFuse and Its CEO

MobileFuse and its former chief executive officer, Kenneth M. Harlan, are accused of aiding and abetting the alleged fraud. According to the complaint, MobileFuse provided substantial assistance to Mathews and Agarwal, including the creation of the inflated invoices that underpinned the revenue‑recognition manipulation.

Misappropriation of Company Funds

In addition to the revenue‑inflation allegations, the complaint asserts that Mathews diverted more than $300,000 of Near’s funds to cover the rental of a luxury single‑family residence for himself and his family. The filing indicates that false invoices were submitted to conceal the misappropriation.

Legal Violations and Penalties Sought

The SEC alleges violations of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and related rules 10b‑5, 13b2‑1, and 13b2‑2. The agency is seeking permanent injunctions, officer and director bars, civil monetary penalties, and disgorgement with prejudgment interest against Mathews and Agarwal, as well as injunctions and penalties against Harlan and MobileFuse.

Investigation and International Cooperation

The investigation was led by SEC staff members David S. Brown and Michael Peterson, under the supervision of Diana K. Tani and Laura D’Allaird of the SEC’s Cyber and Emerging Technologies Unit. The litigation will be overseen by Kathryn C. Wanner, supervised by Stephen Kam of the Los Angeles Regional Office. The SEC acknowledged assistance from the U.S. Attorney’s Office for the Southern District of New York, the FBI, and several foreign regulatory bodies, including the Australian Securities and Investments Commission and the Monetary Authority of Singapore.

Potential Impact

If the court adopts the SEC’s requested remedies, the defendants could face long‑term bans from serving as officers or directors of public companies, significant financial penalties, and mandatory restitution. The case underscores the SEC’s continued focus on enforcing accurate financial reporting and deterring complex accounting fraud.

This report is based on information from SEC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.