‘A fraud of staggering scope’: Closing arguments begin in fraud trial against Outcome Health founders

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The founders of the once-lauded Chicago start-up Outcome Health lied to clients for years as part of “a fraud of staggering scope and ambition,” a government prosecutor alleged during closing arguments in the federal trial of three former executives.

CEO Rishi Shah, former President Shradha Agarwal and former Chief Operating Officer and Chief Financial Officer Brad Purdy, who are accused of perpetrating a $1 billion fraud scheme. The closing arguments come after more than eight weeks of testimony and more than five years after the once high-flying company began to unravel.Outcome was once one of the most talked about tech companies in Chicago, at one point rising to a reported valuation of more than $5 billion.

Johnston, however, spent Tuesday morning describing how Shah and Agarwal were involved in email discussions in 2012 and 2013 about giving pharmaceutical companies lists of offices where their ads could run that included offices with no screens. Those discussions pre-dated Desai’s start at the company in late 2013, when he was 20 years old, Johnston argued.

Johnston also took aim at Purdy, highlighting an email between Purdy and Desai in 2013, in which Desai tells Purdy he “heavily inflated” metrics related to ads running on tablets and asked Purdy to “let me know whether we should stay away from that.” Purdy responded, four days later, saying they should discuss it further the following week.

 

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