Former Outcome Health Executives Face Charges Of Allegedly Falsifying Data In $1B Fraud Scheme
The case was sparked by reports that the company—which displays pharmaceutical ads in doctors’ offices—had misled some customers with inflated data and fake reports.
The Associated Press:
4 Health Company Executives Accused In $1B Fraud Scheme
Four former executives of a Chicago-based health-information company are accused in a $1 billion fraud scheme. An indictment unsealed Monday in Chicago federal court says Outcome Health billed clients for full ad campaigns when only some ads were placed. The company allegedly falsified ad performance statements, later using them to help secure millions in loans. (11/25)
The Wall Street Journal:
Former Outcome Health Executives Charged In Alleged $1 Billion Fraud Scheme
The criminal indictments of the startup’s former chief executive, Rishi Shah, as well as ex-president Shradha Agarwal and previous finance chief Brad Purdy, conclude a two-year investigation by the Justice Department. The case was sparked by a 2017 Wall Street Journal report that the company—which displays pharmaceutical ads in doctors’ offices—had misled some customers with inflated data and fake reports. In the indictment unsealed Monday, the three executives were each charged with multiple counts of mail and wire fraud and two counts of bank fraud. Mr. Shah, 33 years old, also faces two counts of money laundering and Mr. Purdy, 30, one count of making a false statement to a bank. On the most serious charges, the three each face a maximum prison sentence of 30 years if convicted. (Winkler, 11/25)
Reuters:
U.S. Charges Former Outcome Health Executives In $1 Billion Fraud
Prosecutors said the defendants maintained a facade of “extraordinary revenue growth” through a scheme from 2011 to 2017 in which Outcome overstated its industry connections, billed clients for ads that never ran and inflated revenue. They said this enabled Chicago-based Outcome to raise $487.5 million of equity financing and borrow $485 million, with investors that included affiliates of Goldman Sachs Group Inc, Google parent Alphabet Inc and Pritzker Group. (Stempel, 11/25)
