2024-07-03 14:30:01
NEW DELHI: An Indian-American businessman has been convicted for seven and a half years in prison for orchestrating a billion advertisement fraud. The scheme deceived high-profile investors such as Goldman Sachs Group Inc, Google parent Alphabet Inc, and Illinois Governor JB Pritzker’s venture capital firm.
Shah, co-founder of Outcome Health, was found guilty on multiple counts of fraud and money laundering in April 2023, alongside his company co-founders Shradha Agarwal and Brad Purdy.Agarwal received a three-year sentence in a halfway house, while Purdy was sentenced to two years and three months in prison.
The US Securities and Exchange Commission also filed a civil lawsuit against Shah, Agarwal, Purdy, and former chief growth officer Ashik Desai, who pleaded guilty prior to trial.
Who is Rishi Shah?
Rishi Shah is a technology investor and entrepreneur who co-founded JumpStart Ventures in 2011, where he served as Chairman and Managing Director, focusing on investments in health technology, education technology, and media.
Born into a family of doctors, Shah attended Harvard’s summer economics program in 2005 before briefly studying at Northwestern University and subsequently dropping out to pursue entrepreneurship.
In 2006, Shah founded Outcome Health (formerly Context Media Health), which installed TVs in doctors’ offices to display health-related advertisements to patients. Under his leadership, Outcome Health grew significantly and became a prominent player in the tech and healthcare investment sectors by the mid-2010s.
The 38-year-old serves on the Board of Directors of Young Presidents Organisation (YPO), 1871, and MATTER, a community of healthcare innovators and incubator for ideas. He also advises technology startup accelerators/incubators, nonprofits, and universities.
Shah’s net worth was falsely inflated to over $4 billion in 2016. The truth emerged in 2017 when fraudulent activities at Outcome Health were exposed by the Wall Street Journal. Investors, including Goldman Sachs and Alphabet, filed lawsuits against the company, revealing that Shah and his co-founder had profited while investors suffered losses.
Shah, co-founder of Outcome Health, was found guilty on multiple counts of fraud and money laundering in April 2023, alongside his company co-founders Shradha Agarwal and Brad Purdy.Agarwal received a three-year sentence in a halfway house, while Purdy was sentenced to two years and three months in prison.
The US Securities and Exchange Commission also filed a civil lawsuit against Shah, Agarwal, Purdy, and former chief growth officer Ashik Desai, who pleaded guilty prior to trial.
Who is Rishi Shah?
Rishi Shah is a technology investor and entrepreneur who co-founded JumpStart Ventures in 2011, where he served as Chairman and Managing Director, focusing on investments in health technology, education technology, and media.
Born into a family of doctors, Shah attended Harvard’s summer economics program in 2005 before briefly studying at Northwestern University and subsequently dropping out to pursue entrepreneurship.
In 2006, Shah founded Outcome Health (formerly Context Media Health), which installed TVs in doctors’ offices to display health-related advertisements to patients. Under his leadership, Outcome Health grew significantly and became a prominent player in the tech and healthcare investment sectors by the mid-2010s.
The 38-year-old serves on the Board of Directors of Young Presidents Organisation (YPO), 1871, and MATTER, a community of healthcare innovators and incubator for ideas. He also advises technology startup accelerators/incubators, nonprofits, and universities.
Shah’s net worth was falsely inflated to over $4 billion in 2016. The truth emerged in 2017 when fraudulent activities at Outcome Health were exposed by the Wall Street Journal. Investors, including Goldman Sachs and Alphabet, filed lawsuits against the company, revealing that Shah and his co-founder had profited while investors suffered losses.
