Rishi Shah, the founder and former CEO of Outcome Health, has been found guilty of mail fraud, wire fraud, bank fraud, and money laundering. Outcome Health, a health tech unicorn, was once valued at $5.5 billion and raised funding from investors such as Goldman Sachs and Alphabet's CapitalG. Shah and two other former executives could face decades in jail, with sentencing to come later. The company's downfall began in 2017 when it was accused of misleading pharma companies by charging them for ad placements on more video screens than it had installed.
Three former executives of Outcome Health, a Chicago-based health technology startup, have been found guilty of a $1 billion corporate fraud scheme. The executives sold advertising inventory they did not have, inflated metrics, and underdelivered on advertising campaigns. The scheme lasted between 2011 and 2017 and resulted in at least $45 million of overbilled advertising services. The three executives convicted include the co-founder and former CEO, who was convicted of five counts of mail fraud, 10 counts of wire fraud, two counts of bank fraud, and two counts of money laundering. They have yet to be sentenced but face years in prison.
Two Indian-origin executives of Outcome Health, a Chicago-based start-up, have been convicted of running a $1 billion corporate fraud scheme that targeted the company's clients, lenders, and investors. Rishi Shah, the co-founder and former CEO, was found guilty on 19 of 22 counts, while co-founder and former president Shradha Agarwal and former chief operating officer Brad Purdy were also convicted. The company installed television screens and tablets in doctors' offices around the US and then sold advertising space on those devices to clients, most of whom were pharmaceutical companies. The trio lied to investors and lenders to conceal their ongoing under-delivery of advertising campaigns for clients.
Three former executives of Outcome Health, a Chicago-based health technology start-up, have been convicted for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 billion in fraudulently obtained funds. The scheme involved selling advertising inventory the company did not have to Outcome’s clients, then under-delivering on its advertising campaigns. The executives also lied to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts. The under-delivery to Outcome’s advertising clients resulted in a material overstatement of Outcome’s revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because the executives caused others to fabricate data to conceal the under-deliveries from the auditor.
Former Outcome Health executives, Rishi Shah, Shradha Agarwal, and Brad Purdy, have been found guilty of multiple counts of fraud by a jury in Chicago. The three were accused of lying about the number of doctors' offices that had screens and tablets running their content, which they used to overcharge drug companies for advertising and inflate revenue figures used to get loans and raise money from investors. Outcome Health, which sold advertising to pharmaceutical companies, grew from a 16-employee operation in 2011 to a company with more than 500 employees and a reported valuation of more than $5 billion by 2017.
Former executives of Outcome Health, a healthcare technology company, have been found guilty of fraud. The executives were accused of misleading investors and advertisers by providing false information about the company's financial performance. The verdict comes after a lengthy legal battle and could result in significant penalties for the individuals involved.
Outcome Health co-founders and former COO were convicted of defrauding customers and investors, facing up to 30 years in prison. The Chicago-based startup was valued at over $5 billion and raised nearly half a billion dollars from investors, including Goldman Sachs and Google, before allegations of overbilling pharma companies and falsifying reports of prescription increases led to its downfall. The convictions serve as a warning to startup entrepreneurs to approach the line between "fake it till you make it" and fraud cautiously and remind investors to do their homework.
Closing arguments have begun in the federal trial of three former executives of Outcome Health, a once-lauded Chicago startup that placed screens and tablets in doctors' offices and waiting rooms. The founders are accused of perpetrating a $1bn fraud scheme by lying about how many doctors' offices had screens and tablets running their content and then using those exaggerated numbers to overcharge drug companies for advertising and inflate revenue figures used to get loans and raise money from investors. The defendants face charges of mail fraud, wire fraud and bank fraud, and all three have pleaded not guilty to the charges.
