Don’t risk your business cred through engaging in fraudulent scheming. In this post, we will tell you how a former health-advertising company bamboozled their customers by engaging them in fake schemes. And how fast this company becomes “Unicorn” company in its startup days.
The former company “Outcome Health” executives, Rishi Shah and Shraddha Agarwal along with two co-executives Bard Purdy and Ashik Desai have been accused by the U.S. prosecuting attorney on fraud charges, they obtain nearly $1 billion concerning a scheme to overbill clients of the healthcare-advertising company and became one of the most eminent companies in Chicago.
The company’s former Chief Executive Officer, Rishi Shah, charged with 26-counts, including wire fraud, money laundering, bank fraud, and mail fraud.
Shraddha Agarwal, the company’s former president, charged with 17-counts, including mail fraud, wire fraud, and bank fraud.
Ashik Desai, a former Executive Vice President of the company, charged with wire fraud.
The former CFO, Brad Purdy, charged with 15-counts including, mail fraud, wire fraud, bank fraud and making a false statement to a bank.
The U.S. prosecutors define an intricate scheme that devoted by the accused executives of the former company to bill clients for advertising portfolio they didn’t get. The scheme, which stretched back to 2011, allowed the company to raise nearly $1 billion in equity and debt, as well as $487 million from well-known investors.
Brian Hayes, the assistant U.S. Attorney, said in a statement, “The fraud assumed to have been committed by the offenders and fooled clients into paying for advertising it. Botched to deliver and obliged to dishonestly bloat the worth of the company.”
The lawyers of Rishi Shah said in a statement, “Shah did not constrain these crimes and disagreed with the charges that government charges him. He is being blamed for the offense of others who have cut compacts with the government to diminish their revelation”.
Shraddha Agarwal’s lawyer stated, “She never take part in any scheme never committed any scam. Agrawal was dedicated to transparency and reliability of the company.”
Theodore Poulos, the lawyer of Brad Purdy, said, “The government charges against him are wrong and erroneous. Poulos also said, “Purdy represented the company in integrity and confidently said that was a well-run company.”
Rishi Shah, Shraddha Agarwal, and Brad Purdy could be condemned to 30 years in custodial, and Ashik Desai faces up to 20 years. The official authorities will also seize any assets the offenders have. For the most part, the money that went to Jumpstart Ventures, run by Rishi Shah, Shraddha Agarwal, and Brad Purdy. $30 million that went to Rishi Shah, Shraddha Agarwal and the startups also identified by the government.
Rishi Shah detained the attention in May 2017 and announcing the $487 million investment that maintained the worth of his company at more than $5 billion and driving into the group of founders of self-owned “unicorn” companies, Like Airbnb and Uber these companies’ worth is more than $1 billion.
The official authorities say that a deal of $110 million in 2016 and fundraising allowed Rishi Shah and Shraddha Agrawal to pay themselves $262 million.