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Former executives of Outcome Health convicted in $1B corporate fraud scheme

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Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#31

Post by boeingUH60 »

rchaud wrote: post #10
gnatman wrote: post #7

Earlier quoted context omitted.

The CEO, Rishi Shah, was a major rising star and was profiled by the Wall Street Journal in 2017. The journalist on the story thought something seemed fishy and started pulling threads, leading to an expose published in October of that year. https://www.wsj.com/articles/outcome-a-hot-tech-startup-misl...

Such is the conundrum with the WSJ. The op-ed section is beyond parody at this point (see the recent article attempting to pin SVB's collapse on 'wokeness'). But at least the journalists remain committed to digging into stories. The Theranos fraud was also discovered by a WSJ journalist who wasn't wowed by their ex-Pentagon and Beltway board members and puff pieces written about Holmes.

Ironically, WSJ is owned by Rupert Murdoch, who invested $100 million in Theranos. According to the famous book, Bad Blood, Elizabeth Holmes tried to get Murdoch to kill the story but he refused.

Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#32

Post by NickC25 »

boeingUH60 wrote: post #31
rchaud wrote: post #10

Earlier quoted context omitted.

Such is the conundrum with the WSJ. The op-ed section is beyond parody at this point (see the recent article attempting to pin SVB's collapse on 'wokeness'). But at least the journalists remain committed to digging into stories. The Theranos fraud was also discovered by a WSJ journalist who wasn't wowed by their ex-Pentagon and Beltway board members and puff pieces written about Holmes.

Ironically, WSJ is owned by Rupert Murdoch, who invested $100 million in Theranos. According to the famous book, Bad Blood, Elizabeth Holmes tried to get Murdoch to kill the story but he refused.

Ironic indeed. Surprisingly ethical behavior from Murdoch - I wouldn't have expected such a person to take that kind of a hit on his $100 million investment.

Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#33

Post by stickfigure »

NickC25 wrote: post #32
boeingUH60 wrote: post #31

Earlier quoted context omitted.

Ironically, WSJ is owned by Rupert Murdoch, who invested $100 million in Theranos. According to the famous book, Bad Blood, Elizabeth Holmes tried to get Murdoch to kill the story but he refused.

Ironic indeed. Surprisingly ethical behavior from Murdoch - I wouldn't have expected such a person to take that kind of a hit on his $100 million investment.

He paid 50X that for the WSJ in 2007.

Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#34

Post by 1vuio0pswjnm7 »

"Following the widely publicized prosecution of Theranos Inc. founder Elizabeth Holmes, the Outcome Health trial was another example of the government taking on what prosecutors in the trial called the technology world's "fake-it-till-you-make-it" culture."

https://www.wsj.com/amp/articles/former-outcome-health-execu...

Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#35

Post by paulpauper »

Shah was convicted of five counts of mail fraud, 10 counts of wire fraud, two counts of bank fraud, and two counts of money laundering. Agarwal was convicted of five counts of mail fraud, eight counts of wire fraud, and two counts of bank fraud. Purdy was convicted on five counts of mail fraud, five counts of wire fraud, two counts of bank fraud, and one count of false statements to a financial institution. The defendants face a maximum penalty of 30 years in prison for each count of bank fraud and 20 years in prison for each count of wire fraud and mail fraud. Purdy faces a maximum penalty of 30 years in prison for the count of false statements to a financial institution. Shah faces a maximum penalty of 10 years in prison for each count of money laundering. A sentencing hearing will be scheduled at a date to be determined. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

damn. they better hope Elon Musk invents life extension or something ..that is a loooong time. Excessive even.

Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#36

Post by ijustwanttovote »

gnatman wrote: post #7
PragmaticPulp wrote: post #3

They installed displays in medical buildings that sold as space. Then they oversold the ad space, billing customers for ads that were never displayed from 2011 to 2017 and took investment based on the fake numbers. I wonder how the scheme unraveled. It takes a lot of people to cover up a fraud at this scale, so presumably someone noticed and reported it? I really dislike this company. I went to a doctor who had adver…

The CEO, Rishi Shah, was a major rising star and was profiled by the Wall Street Journal in 2017. The journalist on the story thought something seemed fishy and started pulling threads, leading to an expose published in October of that year. https://www.wsj.com/articles/outcome-a-hot-tech-startup-misl...

archive: https://archive.is/Iq0J2

Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#37

Post by paulpauper »

sidewndr46 wrote: post #25

Any jail time for any of them? Until then it's just posturing by the Justice department.

did you read the release? How is jail not an option?

>Shah was convicted of five counts of mail fraud, 10 counts of wire fraud, two counts of bank fraud, and two counts of money laundering. Agarwal was convicted of five counts of mail fraud, eight counts of wire fraud, and two counts of bank fraud. Purdy was convicted on five counts of mail fraud, five counts of wire fraud, two counts of bank fraud, and one count of false statements to a financial institution. The defendants face a maximum penalty of 30 years in prison for each count of bank fraud and 20 years in prison for each count of wire fraud and mail fraud. Purdy faces a maximum penalty of 30 years in prison for the count of false statements to a financial institution. Shah faces a maximum penalty of 10 years in prison for each count of money laundering. A sentencing hearing will be scheduled at a date to be determined. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#38

Post by gvb »

skeeter2020 wrote: post #11

The thing I noticed was that everyone convicted or pleading guilty was from the soft, BS parts of the company. How come none of the Engineers ever get rich in these schemes? What are we doing wrong?

How come none of the Engineers ever get rich in these schemes?

"These schemes" were fraud. It is better, and wiser, to eschew fraudulent riches and stay out of jail.

Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#39

Post by phlipski »

FireBeyond wrote: post #27
gnatman wrote: post #7

Earlier quoted context omitted.

The CEO, Rishi Shah, was a major rising star and was profiled by the Wall Street Journal in 2017. The journalist on the story thought something seemed fishy and started pulling threads, leading to an expose published in October of that year. https://www.wsj.com/articles/outcome-a-hot-tech-startup-misl...

Forbes 30 Under 30 has a similar issue... I think over the last 10-15 years, people featured in that list have been convicted or accused of scamming more money than they've made, including Elizabeth Holmes, SBF and at least a couple more.

It would be fascinating to see the full numbers on this statement. Almost sounds like an ideal arbitrage opportunity - just short the 30 under 30 list and profit!

Re: Former executives of Outcome Health convicted in $1B corporate fraud scheme

#40

Post by eldavido »

FireBeyond wrote: post #27
gnatman wrote: post #7

Earlier quoted context omitted.

The CEO, Rishi Shah, was a major rising star and was profiled by the Wall Street Journal in 2017. The journalist on the story thought something seemed fishy and started pulling threads, leading to an expose published in October of that year. https://www.wsj.com/articles/outcome-a-hot-tech-startup-misl...

Forbes 30 Under 30 has a similar issue... I think over the last 10-15 years, people featured in that list have been convicted or accused of scamming more money than they've made, including Elizabeth Holmes, SBF and at least a couple more.

Meredith Perry from uBeam comes to mind https://www.vanityfair.com/news/2016/05/another-red-hot-tech...

I met this woman through friends of friends. Just kinda felt weird, and off.

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