Indian American Ex-Billionaire 38 Rishi Shah Prisoned for 7.5 years, Fraud of $ 1 Billion
38 Rishi Shah, founder of Chicago based tech company was sent to jail for 7.5 years, Sharadha Agrawal for 3.5 years and 35 Purdy was sent to jail for "masterminding" the $1 billion dollar fraud.
Indian Origin American Businessman 38 Rishi Shah with Sharadha Agarwal Jailed for 7.5 and 3.5 Years, Respectively
Thirty eight year old Indian American businessman Rishi Shah has recently been sent to jail for seven and a half years. On Wednesday Last month Rishi Shah was sentenced to Jail for his involvement in $1 billion fraud case involving visual advertisements in doctors' offices.
The accused have deceived their clients as well as all the lenders for years. The Principal Deputy Assistant Attorney General for the Criminal Division marked,
"Lying about your revenue to obtain customers or financing is fraud, plain and simple. The Criminal Division is committing to holding companies and their executives accountable for their misconduct,” Argentieri said."
"fake it until you make it" Marked the Criminal Department of US
As per the allegation, the people involved in this fraud had the mindset that "fake it until you make it". All accused lied to their customers and all external dealers about their revenue and Profits.
"Outcome’s former executives deceived their clients, their auditor, their lenders, and their investors for years,” Nicole M. Argentieri Principal Deputy Assistant Attorney General and head of the United States Justice Department’s Criminal Division Mentioned.
According to the Justice Department, All the Three Co founders of Company, "lied or caused others to lie to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts.
In April 2023, Outcome Health’s managers and co-founders Rishi Shah, Purdy and Shradha Agarwal were charged for Huge money laundering, wire fraud, for misleading in advertisemant and for Misleading Customers and Dealers.
In 2017, The Company was so reputed in the market that Goldman Sachs and Pritzker Group had also invested $600 million in it.
"Their sentences should serve as yet another reminder that ‘faking it until you make it’ is not an acceptable practice for any business, whether that company is a technology start-up or a well-established corporation." Argentieri added.
Lawsit Filed by Giant Business Tycoons Goldman Sachs and Pritzker
The case against the co-founder of Outcomes Health was filed by its biggest investors Goldman Sachs, Pritzker and CapitalG. In 2017, Goldman Sachs and Pritzker together invested a total of $500 million in Outcome Health. In the latest release the Department mentioned,
“According to the trial evidence, the scheme targeting Outcome’s clients began in 2011 and lasted until 2017, and resulted in at least $45 million of overbilled advertising services,”
The case of $1 billion fraud with people is very serious so it is being investigated by the Federal Bureau of Investigation (FBI) and the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG). Apart from this, in this case the United States Securities and Exchange Commission will also provide the required assistance.
This was an elaborate, billion-dollar fraud scheme by three people who were supposed to be leaders of the company,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, Services Branch. “
Who is Rishi Shah and Sharadha Agarwal ?
38 year old Rishi Shah is an Indian American Businessman and is the CEO or Co-founder of Outcome Health. According to Forbes, in 2017 Rishi Shah's net worth was $3.6 Billion.
Rishi and co-founder Shradha Agarwal started a startup named Context Media in Chicago in 2006 which provided health related information and training to doctors. In 2016 this company became 'Chicago's 6th Fastest Growing Company', in 2017 Context Media changed its name to Outcome Health.
"Misled Advertisers With Manipulated Information" marked Wall street Journal in 2017
This case is not going on against Rishi and Outcome Health's co-founder Sharadha Agarwal from today but since 2017. When The Wall Street Journal accused them of $1 billion fraud. Wall Street Journal said in its publication that Outcome Health misleads people and customers.
The Wall Street Journal titled that publication in 2017 as, "Outcome, a Hot Tech Startup, Misled Advertisers With Manipulated Information, Sources Say."
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