Indian-American businessman Rishi Shah sentenced to prison by a US court

Indian-American businessman Rishi Shah, the former billionaire co-founder of Outcome Health, has been sentenced to seven and a half years in prison by a US court.

Rishi Shah is an Indian-American businessman

This case involves a ₹8,300 crore ($1 billion) fraud scheme that affected prominent investors such as Goldman Sachs Group Inc., Google parent Alphabet Inc., and Illinois Governor JB Pritzker’s venture capital firm. US District Judge Thomas Durkin delivered the verdict, concluding one of the largest corporate fraud cases in recent memory.

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As reported by Bloomberg, Outcome Health was conceived by Mr. Shah during his university years. Initially known as Context Media Health, the company was established in 2006 with the goal of revolutionising medical advertising by installing televisions in doctors’ offices to broadcast health ads aimed at patients.

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Mr. Shah co-founded the company with Shradha Agrawal, and the company’s valuation soared as they sought to innovatively bridge the communication gap between patients and healthcare providers through targeted ad placements.

This case involves a ₹8,300 crore ($1 billion) fraud scheme

By the mid-2010s, Outcome Health had become a significant player in the tech and healthcare investment sectors. The potential of integrating advanced technology into traditional healthcare marketing attracted high-profile investors.

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During its rapid ascent, Outcome secured substantial funding and a large client base, elevating Mr. Shah’s status in Chicago’s corporate scene.

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However, beneath the success lay a foundation of deceit. Prosecutors revealed that Mr. Shah, 38, along with Ms. Agrawal and another defendant, chief financial officer Brad Purdy, orchestrated a massive fraud scheme against investors, clients, and lenders by misrepresenting the company’s operational and financial status.

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Central to the fraud was selling more advertising inventory than Outcome Health could deliver and fabricating data to conceal the shortfall.