Federal prosecutors charged former executives of Outcome Health with allegedly falsifying data in a nearly $1 billion scheme to defraud the company’s clients and investors, including Goldman Sachs Group Inc., Alphabet Inc. and an investment firm founded by Illinois Gov. J.B. Pritzker (D), the Wall Street Journal reported. The criminal indictments of the startup’s former chief executive, Rishi Shah, as well as ex-president Shradha Agarwal and previous finance chief Brad Purdy, conclude a two-year investigation by the Justice Department. In the indictment unsealed yesterday, the three executives were each charged with multiple counts of mail and wire fraud and two counts of bank fraud. Shah also faces two counts of money laundering and Purdy faces one count of making a false statement to a bank. On the most serious charges, the three each face a maximum prison sentence of 30 years if convicted. The Securities and Exchange Commission yesterday also sued the three former executives, alleging they committed civil securities fraud.
