Fraud Indian CEO’s $5 Million Assets To Be Released

Rishi Shah, the co-founder and former CEO of Outcome Health, a health technology startup in Chicago, has been found guilty in a significant corporate fraud case involving a $1 billion scheme that targeted the company’s clients, investors, and lenders.

The US Department of Justice seized approximately $55 million worth of assets, primarily owned by Shah and Shradha Agarwal, the former president of the company.

Recently, a federal judge ruled that $4.9 million of the frozen assets should be released, as they were deemed to have been wrongly restrained. Shah’s legal team argued that this money was required for his legal fees during the sentencing and for a potential appeal.

However, the government aimed to retain the funds for eventual restitution, even though no such restitution order had been issued yet. The judge sided with Shah’s argument, emphasizing that the government’s authority pertains to existing restitution orders, not future ones.

Outcome Health’s fraudulent activities involved installing screens and tablets in doctors’ offices, and selling advertising space to pharmaceutical companies based on inflated financials resulting from overbilling clients. Shah’s sentencing is anticipated to take place in the coming fall.