Indian-American Businessman Rishi Shah Sentenced to 7.5 Years in $1 Billion Fraud Scheme in the US

Indian-American Businessman Rishi Shah Sentenced to 7.5 Years in $1 Billion Fraud Scheme in the US

Indian-American businessman and former billionaire co-founder of Outcome Health Rishi Shah has been sentenced to seven and a half years in prison by a US court. In this case Goldman Sachs, Google parent Alphabet Inc., and involved in an ₹8,300 crore ($1 billion) fraud scheme that ensnared high-profile investors such as Illinois Governor JP Pritzker's venture capital firm.

The ruling by U.S. District Judge Thomas Durkin marks the end of one of the largest corporate fraud cases in recent history.

What is 'Outcome Health' Fraud?

Mr. Shaw had the idea for Outcome Health while still in college. Founded in 2006 as Context Media Health, the company had the idea of ​​revolutionizing medical advertising by placing televisions in doctor's offices and using those televisions to show patient-focused health ads.

After the visit of co-founder Shraddha Aggarwal, Mr. Shaw's company experienced exponential growth based on valuations. This growth is attributed to the innovative advertising placement strategy used to bridge the communication gap between healthcare providers and patients.

Convicted of Fraud

Along with Shah, the company's CFO Brad Purdy and president and co-founder Shradha Agarwal were found guilty in April 2023. The fraud was found in 2017 when financial backers sued Shah's Result, charging misrepresentation associated with a USD 487.5 million (Rs 4072 crore) gathering pledges crusade that year that brought about a USD 225 million (Rs 1879 crore) profit that Shah and Agarwal saved for themselves.

Judgment

Rishi Shah, the previous prime supporter and President of the organization, got a seven-and-a-half-year jail sentence for his contribution to the extortion. Brad Purdy, the previous CFO and administrator of the organization, was allowed a 27-month jail sentence on Thursday evening.

The previous president and prime supporter of the startup "Result Wellbeing" was viewed as at fault for extortion, and she was condemned to three years in an asylum.