Billion Dollar Fraud In US By An Indian 'Rishi Shah'

Two Indian-American executives of a health tech startup 'Outcome Health' in Chicago were convicted of a $1 billion fraud scheme.

[{"selector":"#anim-9417077f-96c5-4df3-9f14-854402ff69b4 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.2574010564290425%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-5afdd276-a8da-406c-adac-05699a353537","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Rishi Shah, the co-founder and former CEO, Shradha Agarwal, the former president, and Brad Purdy, the former COO, were all found guilty.

[{"selector":"#anim-ff386399-29f2-4a8c-9ac0-61126fc408f9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.9225349559431875%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-bddea755-1bd1-4afa-b1b0-1c4e71f16848","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] They were found guilty of defrauding the firm's lenders and investors.

[{"selector":"#anim-2dc227ba-f0a5-41a0-8006-d1494f0bd805 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-17.2161061364638%, 0, 0) translate(12.121212121212121%, 12.012548798738687%) scale(0.7575757575757576)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-e5ac0e26-bb72-42c6-95e0-744f50bd0d2a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Shah was found guilty on several counts of fraud, money laundering, and bank fraud.

[{"selector":"#anim-f62d8484-7a30-4a38-9752-6c2bede1aa94 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.499999772451451%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-0ebcea22-f8a7-4a83-8499-e0a88748cbc7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Agarwal was found guilty on several counts of fraud and bank fraud.

[{"selector":"#anim-9294fff8-c63e-4d99-b3ef-608dfcf09936 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(21.249999604959456%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-81beddb5-892d-4a87-876a-002a4322bd6c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Purdy was found guilty of numerous counts of fraud, bank fraud, and making false statements to a financial institution.

[{"selector":"#anim-0e09fed1-8f47-4ff4-b4b7-113498c07320 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-978cfc7d-30bd-46ff-9f05-6613646b6a29","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] For bank fraud, the defendants face up to 30 years in prison, and for wire and mail fraud, they face up to 20 years.

[{"selector":"#anim-2388750c-8f7f-4cdd-886f-221712af9339 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(2.169467410900303%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-65d384b1-327a-453f-adcf-6ae21edc4f21","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The fraud involved the sale of advertising space that the company did not have and the underperformance of advertising campaigns.

[{"selector":"#anim-c6d39cc3-0ba0-47bb-95dd-5db761417704 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-1.0658141036401503e-14%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-f5471fa0-0a49-46d2-9384-d495bc7d963a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The company continued to bill its customers as if it had delivered in full.

[{"selector":"#anim-1be290a4-4150-439c-9c9a-87f877702283 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-095658bb-6eed-40ee-a828-2e4749dd411d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The trio lied to conceal client under-delivery and inflated engagement metrics to inflate revenue.

[{"selector":"#anim-cf386366-efe6-4bde-94a4-4b5ff68357ea [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-10.645988567171534%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-4e905b60-162f-4ab4-9b03-0dd7f860dc6a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] They raised millions of dollars in financing by inflating revenue figures and lying to investors about the effectiveness of the company's advertising campaigns.