A US court convicted Rishi Shah, an American businessman of Indian descent, to seven and a half years in jail on fraud charges. Shah scammed investors in prominent firms like Google and Goldman Group out of Rs 8.35 thousand crores. This is the largest swindle in American corporate history.
Shah, 38, established Outcome Health in 2006, according to Bloomberg. The corporation set up televisions in doctors’ offices and advertised for healthcare personnel. Shraddha Aggarwal was Rishi’s co-founder in this company. In 2017, Goldman, Alphabet, and Illinois Gov. Pritzker sued Outcome Health. Shah was indicted in April 2023 on more than twelve charges.
Profits were earned swiftly by Rishi Shah.
According to company records, they profited immediately from this enterprise. By 2010, Outcome Health Company had established itself as a major player in the industry. In its early days, the corporation borrowed money from several significant consumers. As a result, Rishi Shah became a well-known figure in Chicago’s business community. However, while they were making quick money, Rishi, Shraddha, and the company’s CFO were planning to scam their investors and clients.
Money received for lying
The three collected money from various medical businesses but did not promote them on television. Aside from that, he made false statements regarding the company’s profitability. Shah also deceived major American pharmaceutical corporations, such as Novo Nordisk. Rishi was living a comfortable life with a steady flow of money from clients and investors. He frequently went on overseas tours and owned a private plane and yacht. He has recently purchased a home worth Rs. 83 crore.
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According to Bloomberg, the fraud plan involved investors including Goldman Sachs Group Inc., Google parent Alphabet Inc., and Illinois Governor JB Pritzker’s venture capital business. The matter was investigated by the Federal Bureau of Investigation (FBI) and the Federal Deposit Insurance Corporation’s Office of Inspector General. The United States Securities and Exchange Commission assisted with the case.
