Rishi Shah
Rishi Shah | |
|---|---|
| Born | 1986 Oak Brook, Illinois, U.S. |
| Occupation | Entrepreneur |
| Known for | Founder and former CEO of Outcome Health; convicted of fraud |
Rishi Shah (born 1986) is an American entrepreneur who was found guilty of fraud and formerly served as the chairman and CEO of Outcome Health, a company he helped establish.[1][2]Cite error: The opening <ref> tag is malformed or has a bad name
Early life
Shah was born in 1986 in Oak Brook, Illinois,[3] to Sonal and Dr. Upendra Shah, an endocrinologist.[2] He attended Hinsdale Central High School before enrolling at Northwestern University, which he left early to focus on his business ventures.[2]
Career
While at Northwestern in 2006, Shah collaborated with classmates Derek Moeller and Shradha Agarwal to create a business plan for ContextMedia, a company aimed at delivering health education materials to physicians' offices, funded through pharmaceutical advertising.Cite error: The opening <ref> tag is malformed or has a bad name Under Shah’s guidance, ContextMedia’s revenue surged by 2,965% between 2010 and 2015, reaching $63.5 million and earning it the position of Chicago’s sixth fastest-growing private firm in 2016.Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name The company was renamed Outcome Health in 2017.Cite error: The opening <ref> tag is malformed or has a bad name
In May 2017, Outcome Health raised over $500 million from investors including Goldman Sachs, CapitalG, and Pritzker Group, achieving a valuation of $5.6 billion,[1] representing the largest single funding round since Groupon’s $950 million fundraising in 2011.[2] Forbes valued Shah’s net worth at $3.6 billion based on his 80% ownership stake.[1]
Nevertheless, in November 2017, investors filed a lawsuit against Outcome Health, Shah, and Agarwal alleging fraud and breach of contract after a Wall Street Journal investigation revealed that the company had provided advertisers with falsified data.[4]Cite error: The opening <ref> tag is malformed or has a bad name The dispute was resolved in January 2018 when the founders agreed to reinvest $159 million of their $225 million dividends back into the business.[5] As part of this agreement, Shah stepped down as chairman and CEO.Cite error: The opening <ref> tag is malformed or has a bad name
Legal
In November 2019, Shah along with associates faced charges related to a fraudulent scheme that defrauded clients, lenders, and investors out of roughly $1 billion.
On April 11, 2023, Shah and two other executives from Outcome Health were found guilty on multiple counts including mail fraud, wire fraud, bank fraud, and money laundering.
On June 25, 2024, Shah received a prison sentence of seven and a half years for his involvement in the $1 billion fraud operation. Co-founder Shradha Agarwal and former COO Brad Purdy were also convicted, with their sentencing dates forthcoming.
See also
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