New Delhi:

Indian-American businessman Rishi Shah has been sentenced. Seven and a half years in prison 8,300 crore ($1 billion) in fraud involving its advertising launch. The fraud scheme defrauded high-profile investors such as Goldman Sachs Group Inc., Google parent Alphabet Inc. and Illinois Gov. J.B. Pritzker’s venture capital firm.

Mr. Shah, the co-founder of Outcome Health, was indicted on more than 12 counts of fraud and money laundering. He was convicted in April 2023 along with his company’s co-founders Shraddha Aggarwal and Brad Purdy. The judge sentenced Aggarwal to three years in a halfway house and Purdy to two years and three months.

The US Securities and Exchange Commission also filed a civil suit against Shah, Aggarwal, Purdy and former chief growth officer Ashk Desai, who pleaded guilty before trial.

Who is Rishi Shah?

1. Rishi Shah is a technology investor and entrepreneur who co-founded Jumpstart Ventures in 2011. As the company’s chairman and managing director, he made more than 60 direct investments in health technology, education technology and media.

2. Rishi Shah, son of a doctor attended Harvard’s summer economics program in 2005. He then attended Northwestern University for a year before starting his own business.

3. In 2006, Shah founded Outcome Health, formerly known as Context Media Health. The company installed TVs in doctors’ offices to run health ads targeted at patients. Under his leadership, Outcome Health grew significantly in value and became a major player in the tech and healthcare investment communities by the mid-2010s.

4. The 38-year-old serves on the board of directors of the Young Presidents Organization (YPO), 1871 and MATTER, a community incubator for healthcare innovators and ideas. He also advises technology startup accelerator/incubator programs, non-profits and universities.

5. Rishi Shah’s net worth was falsely inflated to over $4 billion in 2016. The truth came out in 2017 when The Wall Street Journal exposed fraudulent activities at Outcome Health. Investors including Goldman Sachs and Alphabet sued the company for fraud, revealing that Shah and his co-founders made profits while investors were left with worthless shares.

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