Puthugramam Chidambaran (former CEO) and Sayyed Farhan Ali Naqvi (former CFO) of iLearningEngines, a company specializing in AI-driven business automation, have been indicted on multiple fraud charges. The indictment, revealed in Brooklyn federal court, alleges that they defrauded investors and lenders by fabricating nearly all of the company's customer relationships and revenue. Notably, over 90% of the reported $421 million revenue in 2023 was found to be fabricated, according to prosecutors. The company, which claimed to revolutionize education through AI, went public in April 2024 with a market value that peaked at $1.5 billion. However, it faced scrutiny from short-sellers, leading to its bankruptcy filing under Chapter 11 in December 2024, which was later converted to Chapter 7 liquidation in March 2025. The criminal charges against the executives include running a continuing financial crimes enterprise, securities fraud, wire fraud, and conspiracy to commit these offenses, with the potential for a life sentence for the criminal enterprise charge.