Former Executive Rishi Shah Receives Sentence in Fraud Case

Former Executive Rishi Shah Receives Sentence in Fraud Case

( – The 38-year-old entrepreneur Rishi Shah will spend seven and a half years in prison after being sentenced by U.S. District Judge Thomas Durkin. Shah, a founder of Outcome Health, was found guilty of fraud. The Chicago-based businessman was found to have defrauded investment companies including Goldman Sachs Group Inc., as well as Big Tech companies like Alphabetic Inc. Shah’s company, which provided advertisements on televisions installed in doctor’s offices and medical facilities, also defrauded a venture capital firm owned by Illinois Governor JB Pritzker.

Sentencing took place near the end of June after Shah was convicted of money laundering and fraud charges during a jury trial in 2023. He is one of three executives who were sentenced by Judge Durkin, according to a statement issued by the U.S. Attorney’s Office last week.

At its peak, Outcome Health was valued at $5.6 billion, and Shah’s individual net work reached $3.6 billion thanks to his 80% stake in the firm.

Prosecutors initially sought a 15-year-sentence for Shah, saying he was the “driving force” of the operation and accusing him of lying to everybody involved in the business, from clients and lenders to investors and an audit firm. Shah and the other company executives were also accused of lying to clients in the pharmaceutical industry and taking money for advertisements that were never actually placed on screens in doctors’ offices. The company was also found to have lied about the number of pharmaceutical and medical clients in its network, meaning advertisers paid out for videos and images that were displayed to vastly smaller numbers of patients than claimed.

Shah’s sentencing was a long time coming. The fraud that propelled the company to its great financial success was first revealed in a Wall Street Journal article published in 2017. Shah attracted the attention of the media thanks to his growing involvement in Democratic Party circles in Washington, D.C.

In June, federal authorities announced that they would seize an $8 million mansion owned by Shah near Chicago’s North Side following his sentencing.

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