Outcome Health Executives Convicted in $1B Fraud Scheme
Three former executives of Outcome Health, a Chicago-based health technology start-up, have been convicted for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 billion in fraudulently obtained funds. The scheme involved selling advertising inventory the company did not have to Outcome’s clients, then under-delivering on its advertising campaigns. The executives also lied to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts. The under-delivery to Outcome’s advertising clients resulted in a material overstatement of Outcome’s revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because the executives caused others to fabricate data to conceal the under-deliveries from the auditor.