FOX News San Diego 

A former Qualcomm executive was convicted by a federal jury Tuesday on charges of fraud and money laundering, following his involvement in a massive $180 million scheme, the Department of Justice announced in a press release.

After a four-week trial, the jury deliberated for less than two days before finding Dr. Karim Arabi, 58, guilty of orchestrating an elaborate fraud that deceived Qualcomm into paying millions of dollars for a microchip technology he created under false pretenses.

Dr. Arabi, who was serving as vice president of Qualcomm’s Research and Development Department at the time, had agreed that any technology developed during his tenure at Qualcomm would belong to the company, the DOJ explained. However, he violated this agreement by creating a company, Abreezio, to market and sell a technology that Qualcomm had unknowingly paid for.

The jury found that Dr. Arabi secretly ran Abreezio, even choosing its name and being heavily involved in its operations, all while concealing his role from Qualcomm. He also created fake email accounts to impersonate his sister, Sheida Alan, who was presented as the purported inventor of the microchip technology, the press release explained. In reality, Sheida had no involvement in the creation or development of the technology, and she even changed her last name in 2015 as part of the effort to further conceal Dr. Arabi’s connection to the company.

Qualcomm ended up paying nearly $92 million to Dr. Arabi’s sister. He then used this money to invest in real estate in Canada and Norway, and also laundered the proceeds through intermediary companies. The scheme continued even after Qualcomm launched a civil fraud lawsuit, with Dr. Arabi repeatedly lying, according to the DOJ, and funneling more money through shell companies until his arrest.

“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 Acting U.S. Attorney Andrew Haden. “His actions weren’t just a betrayal of the company—they were a direct attack on the very principles of fairness and integrity that keep business honest. Today’s jury verdict sends a clear message: In the Southern District of California, fraud has consequences.”

FBI San Diego Acting Special Agent in Charge, Houtan Moshrefi, also weighed in on the conviction, stating, “Dr. Arabi perpetrated an elaborate and exhaustive scheme to conceal, deceive, and defraud his own employer out of millions of dollars. With today’s verdict, Dr. Arabi will now face the consequences of this massive fraud, sending the clear message that corporate executives who facilitate fraud will be held accountable for their crimes.”

Tyler Hatcher, Special Agent in Charge of the IRS Criminal Investigation Los Angeles Field Office, emphasized the breach of trust, saying, “As vice president of Research and Development, Mr. Arabi was entrusted with protecting Qualcomm’s intellectual property rights. Mr. Arabi executed a scheme to swindle Qualcomm out of $180 million for what was rightfully their own technology. This guilty verdict is reflective of outstanding investigative work by IRS-CI and our partners at the FBI and U.S. Marshal’s Service.”

Dr. Arabi’s conviction comes after Qualcomm was initially duped into paying $150 million to Abreezio and other coconspirators before the fraud was uncovered.

Two other individuals involved in the scheme have already pleaded guilty. Ali Akbar Shokouhi, a former Qualcomm employee and primary investor in Abreezio, pleaded guilty to money laundering and is scheduled for sentencing on Aug. 1, 2025. Sanjiv Taneja, Abreezio’s nominal CEO, also pleaded guilty to money laundering and will be sentenced on July 11, 2025.

Dr. Arabi now faces legal consequences, with sentencing set for a later date. He’s facing up to 20 years in prison for wire fraud and conspiracy to launder money.