In 2017, Outcome Health was valued at over $5 billion and had a staff of over 500 employees. The company specialized in advertising campaigns for pharmaceutical companies, placing ads on televisions and tablets in doctors’ offices and waiting rooms. However, the executives were accused of fabricating information about the reach of these advertisements in order to overcharge clients and secure additional funding.
Former Outcome Health CEO Rishi Shah was sentenced to 7½ years in prison by a federal judge for his role in the fraud scheme. During his multiday trial, along with co-defendants former Outcome President Shradha Agarwal and former Chief Operating Officer Brad Purdy, prosecutors described Shah as the mastermind behind the billion-dollar fraud that involved numerous lies and deceptions. They requested a 15-year sentence for Shah, stating that anything less would not adequately uphold the rule of law.
Shah’s attorney argued that many of the victims in the case have been partially or fully repaid for their losses due to the fraud. Agarwal and Purdy are also scheduled to receive their sentences this week as well. However, defense attorneys for all three accused individuals argued that another official who had previously admitted to wire fraud and cooperated as a witness against them should be held responsible instead. The trial revealed communications between the defendants and this individual, Ashik Desai, which prosecutors used as evidence of their knowledge of the company’s issues.
Desai is scheduled to receive his sentence in September, leaving behind a corrupt foundation at Outcome Health that has caused significant damage to both its reputation and its financial stability.
