Dr. Karim Arabi, a former vice president at Qualcomm, has been found guilty by a federal jury on charges of fraud and money laundering. The charges stem from an elaborate $180 million scheme that targeted Qualcomm, his previous employer. The jury, after a four-week trial, took less than two days to convict Dr. Arabi.
The verdict revealed that Dr. Arabi developed microchip technology while at Qualcomm. However, instead of acknowledging it as Qualcomm's property, he allegedly marketed the invention through Abreezio, a company he established to obscure his involvement. Qualcomm eventually purchased Abreezio's technology, paying $180 million.
Dr. Arabi had contractually agreed that all technologies developed during his employment belonged to Qualcomm. To carry out the fraud, he reportedly left traces of deceit, including assuming the identity of his sister as the technology's inventor. Evidence in court indicated Dr. Arabi's continued concealment tactics even after Qualcomm unknowingly transferred almost $92 million to his sister.
Acting U.S. Attorney Andrew Haden stated, "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."
FBI San Diego's Acting Special Agent in Charge, Houtan Moshrefi, commented, “Dr. Arabi perpetrated an elaborate and exhaustive scheme to conceal, deceive, and defraud his own employer out of millions of dollars.”
IRS Criminal Investigation's Los Angeles Special Agent, Tyler Hatcher, noted the breach of trust: "As vice president of Research and Development, Mr. Arabi was entrusted with protecting Qualcomm’s intellectual property rights."
The jury's decision also disclosed that Qualcomm had paid $150 million to accomplices before uncovering the deceit. The case elucidated three defendants' involvement, with two co-conspirators—Ali Akbar Shokouhi and Sanjiv Taneja—having pled guilty earlier. Shokouhi will be sentenced in August, followed by Taneja in July 2025.
Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra, and Eric R. Olah are prosecuting the case.
Dr. Arabi faces multiple charges, each carrying severe penalties, and his conviction marks a significant verdict in the Southern District of California, emphasizing the crackdown on corporate fraud. Various federal agencies, including the FBI, IRS Criminal Investigation, and the U.S. Marshals Service, investigated the case.
Karim Arabi, now 58, resides in San Diego, CA.