Indian-American Businessman and Harvard alumni Rishi Shah jailed for Rs 8300 Crores fraud in US. Along with Shah, three former executives of Outcome Health (Outcome), a Chicago-based health technology start-up company, were sentenced for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 (Rs 8300 Cr) billion in fraudulently obtained funds.
Big Scam Rocked Wall Street:
Going into details a scam of One Billion Dollars as unearthed in America, this shook top US investors. What’s even more shocking is that an Indian-American was found guilty and slapped with a jail term of seven and a half years.
Rishi Shah, 38, a co-founder and former CEO of Outcome, was sentenced on June 26 to seven years and six months in prison.
Shradha Agarwal, 38, a co-founder and former president of Outcome, was sentenced yesterday to three years in a half-way house.
Brad Purdy, 35, the former chief operating officer and chief financial officer of Outcome, was also sentenced yesterday to two years and three months in prison.
Multiple Fraud Charges on Tech Startup:
Harvard alumni Rishi Shah started tech startup company ‘Outcome Health’ to bring big changes in how medical advertising is done. Having an interest in his idea companies like Goldman Sachs Group Inc., Alphabet, and others put investment in his idea and firm. However, there are a few irregularities in the issue. It is said that Rishi Shah and co-founder Shradha Agrawal indulged in wrongdoings and misused the funds. Luxury trips were planned and properties were also brought reportedly.
How Google & Goldman Sachs Get Ripped Off:
As part of the fraud, Rishi Shah and Shradha Agarwal duo targeted the company's clients, lenders, and investors. They used false data and under delivered the screens to the clients who bought the screens for the medical advertisement. The firm rose to fame and marked its space in the sector in 2010.
Billionaire to Behind the BARS:
From 2011 to 2017 the accused indulged in the scam and went for overbilling involving many billion dollars. The Court found three people guilty and slapped them with jail terms. While Rishi Shah was slapped with a seven-and-a-half-year jail term, Shradha Agarwal was awarded a three-year term. On the other hand, Brad Purdy, who is the former chief operating officer of the firm, was awarded a two years and three months
