Former Outcome Health CEO Rishi Shah has been sentenced to 7½ years in prison by a federal judge for participating in a significant fraud scheme. The sentencing occurred during a multiday hearing for Shah, as well as his co-defendants, former Outcome President Shradha Agarwal, and former Chief Operating Officer Brad Purdy.
Prosecutors described Shah as the mastermind behind a billion-dollar fraud that involved numerous lies and deceptions, resulting in a corrupt foundation at Outcome Health. They requested a 15-year sentence for Shah, noting that anything less would not adequately uphold the rule of law.
Shah’s attorney argued that the majority of the victims in the case have been partially or fully repaid for the losses they suffered due to the fraud. Agarwal and Purdy are also slated to receive their sentences this week as well.
Outcome Health specialized in advertising campaigns for pharmaceutical companies, promoting ads on televisions and tablets installed in doctors’ offices and waiting rooms. The executives were accused of fabricating information about the reach of these advertisements in order to overcharge clients and secure additional funding.
The company expanded rapidly from a small team to over 500 employees, reaching a valuation of more than $5 billion in 2017. Defense attorneys for the accused individuals argued that the blame should rest on another official who had previously admitted to wire fraud and cooperated as a witness against them. 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.