Outcome Health collected $500M in mail, wire fraud, FBI alleges

Outcome Health and its former executives committed fraud for years to secure around $500 million in funding, the FBI claims in an affidavit that was unsealed July 24, according to the Chicago Tribune.

Outcome Health co-founders Rishi Shah and Shradha Agarwal as well as other former executives are claimed to have "conspired to commit wire fraud… and committed mail and wire fraud," the affidavit reads. No charges have been filed against Outcome Health or its past executives.

The FBI searched a laptop that was owned by Outcome Health and used by former CFO and COO Brad Purdy. After an investigation, the FBI claims that between 2014 and 2017 former company employees engaged in fraudulent practices.

According to the affidavit, Outcome Health "defrauded some its pharmaceutical clients by, and among other things, falsely representing to clients that it had in its network specific doctors that the pharma clients were targeting for advertising, lying to clients about how many TVs and tablets the clients' advertisements were running on," and "fraudulently alerting key performance metrics."

The affidavit goes on to claim that "certain Outcome employees utilized false and misleading performance studies and accounting records to raise money on at least two separate occasions: (1) a $300 million loan in 2016, and (2) a $500 million capital raise in March 2017."

Mr. Shah and Ms. Agarwal stepped down from managing the company in January 2018. Six months later, the two resigned from the board. Outcome Health cut ties with its co-founders in May.

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