• John Pletz On Technology
  • John Pletz On Technology

    Two former Outcome Health employees plead guilty

    The two, who are former analysts, reached plea agreements in the?fraud case involving a onetime?Chicago startup darling.?

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    79彩票注册网址Two former low-level employees at Outcome Health pleaded guilty Thursday to charges of conspiracy to commit wire fraud in a $1 billion scheme that federal authorities say duped high-profile investors.


    Kathryn Choi and Oliver Han, who worked as analysts at the healthcare-advertising company, pleaded guilty and agreed to cooperate with the federal investigation. They face up to five years in prison.

    They reported to Ashik Desai, a former executive at Outcome Health who was at the center of the scheme and previously pleaded guilty to wire fraud He agreed to testify against co-founders Rishi Shah and Shradha Agarwal, and former chief financial officer Brad Purdy.

    Desai faces up to 10 years in prison for his role.Shah, Agarwal and Purdy face 20 to 30 years in prison. They have pleaded not guilty.

    Outcome built a network of television screens in thousands of doctors’ offices that carried educational content and advertising from drug companies. Federal prosecutors claim Outcome charged clients for more advertising than they got and it inflated the results of those advertising campaigns. They also say the fraud resulted in over-billing customers by $25 million to $65 million, which led to inaccurate financial results that the company used to raise and borrow nearly $1 billion in funding, including at least $37.5 million that went to Shah and Agarwal, prosecutors have charged. Among the investors who were duped included 79彩票注册网址man Sachs, Pritzker Group Venture Capital and the investment arm of Google's parent company, Alphabet.

    According to court filings, Han and Choi falsified reports to advertisers that deliberately overstated the number and misstated the identities of locations where their ads were running. Outcome allowed pharmaceutical companies to advertise in the offices of particular doctors. At Desai's direction, Han and Choi also falsified reports that were given to auditors that were hired to verify the company's financial statements, according to their plea agreements.

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    They reported to Ashik Desai, a former executive at Outcome Health who was at the center of the scheme and previously pleaded guilty to wire fraud. He agreed to testify against co-founders Rishi Shah and Shradha Agarwal, and former chief financial officer Brad Purdy.

    Desai faces up to 10 years in prison for his role. Shah, Agarwal and Purdy face 20 to 30 years in prison. They have pleaded not guilty.

    79彩票注册网址Outcome built a network of television screens in thousands of doctors’ offices that carried educational content and advertising from drug companies. Federal prosecutors claim Outcome charged clients for more advertising than it delivered and inflated the results of that advertising.

    The fraud resulted in inaccurate financials results, which the company used to raise and borrow nearly $1 billion in funding, including at least $37.5 million that went to Shah and Agarwal, prosecutors have charged.

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