Two Indian-American executives of a health tech startup 'Outcome Health' in Chicago were convicted of a $1 billion fraud scheme.
Rishi Shah, the co-founder and former CEO, Shradha Agarwal, the former president, and Brad Purdy, the former COO, were all found guilty.
They were found guilty of defrauding the firm's lenders and investors.
Shah was found guilty on several counts of fraud, money laundering, and bank fraud.
Agarwal was found guilty on several counts of fraud and bank fraud.
Purdy was found guilty of numerous counts of fraud, bank fraud, and making false statements to a financial institution.
For bank fraud, the defendants face up to 30 years in prison, and for wire and mail fraud, they face up to 20 years.
The fraud involved the sale of advertising space that the company did not have and the underperformance of advertising campaigns.
The company continued to bill its customers as if it had delivered in full.
The trio lied to conceal client under-delivery and inflated engagement metrics to inflate revenue.
They raised millions of dollars in financing by inflating revenue figures and lying to investors about the effectiveness of the company's advertising campaigns.