Dr. Karim Arabi, former vice president of Qualcomm’s Research and Development Department, could receive a severe sentence of up to 20 years in prison. The jury found the ex-Qualcomm executive guilty of fraud and money laundering. Arabi developed and executed an elaborate scheme to defraud the company where he worked.
The case involves $180 million defrauded from Qualcomm, one of the leading developers of ARM processors for smartphones. The former executive obtained this money through fraudulent means, involving a third-party company with which he concealed any relationship.
Ex-Qualcomm executive found guilty of $180 million fraud against company
Arabi’s employment contract stated that any technology developed during his tenure would belong to Qualcomm. However, he secretly founded Abreezio, an external firm, through which he sold microchip technology to Qualcomm itself. Abreezio might have leveraged Qualcomm’s resources to develop the technology it ultimately sold.
Arabi did everything possible to hide his role as Abreezio’s founder and CEO. In fact, he even chose the company’s name and oversaw its operations. The trial revealed that the former Qualcomm executive also used fake email accounts. He also falsely used the identity of his sister, Sheida Alan. The company portrayed Sheida Alan as the creator of the technology that Qualcomm purchased. The scheme even involved changing Sheida Arabi’s name to Sheida Alan to conceal her family relationship.
“The defendant took advantage of the trust placed in him, lining his pockets with millions by orchestrating a scheme to deceive and then bleed his own employer,” said Judge Andrew Haden. “Today’s jury verdict sends a clear message: In the Southern District of California, fraud has consequences,” he added.
The involvement of the FBI and IRS was key to the investigation. “Dr. Arabi perpetrated an elaborate scheme to conceal, deceive, and defraud his own employer out of millions of dollars,” said FBI acting special agent in charge Houtan Moshrefi, as reported by CBS 8.
Others involved
Other participants in the fraudulent schemes pleaded guilty in the case. Ali Akbar Shokouhi—a former Qualcomm employee and Abreezio’s primary investor—and Sanjiv Taneja—Abreezio’s nominal CEO—will be sentenced in August and July, respectively. Meanwhile, Karim Arabi could receive a maximum sentence of up to 20 years in prison.
2025-04-12 15:04:46