Former Outcome Health Executives Sentenced for $1 Billion Fraud Scheme Involving Clients, Lenders, and Investors “10 Tips for Improving Your Time Management Skills”
Fraud Scheme Involving Outcome Health Results in Sentencing of Former Executives
Three former executives of Outcome Health, a Chicago-based health technology start-up company, have been sentenced for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors, involving approximately $1 billion in fraudulently obtained funds. Rishi Shah, Shradha Agarwal, and Brad Purdy were found guilty of deceiving clients, investors, and lenders over several years.
Shah, a co-founder and former CEO of Outcome, was sentenced to seven years and six months in prison. Agarwal, a co-founder and former president, received a three-year sentence in a half-way house. Purdy, the former COO and CFO, was sentenced to two years and three months in prison.
The executives sold advertising inventory the company did not have to clients and under-delivered on advertising campaigns, but still invoiced clients as if they had delivered in full. They also inflated metrics to show patient engagement with Outcome’s tablets in doctors’ offices. This scheme lasted from 2011 to 2017 and resulted in at least $45 million of overbilled advertising services.
Additionally, the executives defrauded lenders and investors by overstating Outcome’s revenue for the years 2015 and 2016. They used the inflated revenue figures to raise significant amounts of debt and equity financing, resulting in dividends that benefited them personally.
The FBI and FDIC-OIG investigated the case, with assistance from the U.S. Securities and Exchange Commission. The executives were convicted of various counts of fraud, money laundering, and false statements. Three other former employees also pleaded guilty to charges related to the scheme.
The sentencing of these former executives serves as a reminder that fraudulent practices will not be tolerated in the business world, regardless of the company’s size or industry. The Justice Department and U.S. Attorney’s Office are committed to holding individuals accountable for their misconduct and delivering justice for the victims of complex fraud schemes. In a recent case prosecuted by Madden and Saurish Appleby-Bhattacharjee in the Northern District of Illinois, the legal duo successfully navigated the complexities of the trial process to secure justice. The case, which involved intricate legal arguments and a deep understanding of the law, highlighted the expertise and dedication of Madden and Saurish Appleby-Bhattacharjee in the field of law.
Throughout the trial, Madden and Saurish Appleby-Bhattacharjee demonstrated their commitment to upholding the law and seeking justice for their clients. Their strategic approach to the case, combined with their extensive legal knowledge, allowed them to effectively present their arguments in court and ultimately achieve a favorable outcome.
The successful prosecution of the case by Madden and Saurish Appleby-Bhattacharjee in the Northern District of Illinois serves as a testament to their skill and expertise as legal professionals. Their dedication to their clients and commitment to the pursuit of justice have solidified their reputation as top-notch attorneys in the field.
