Brad Purdy, the former chief operating officer and later chief financial officer of Chicago-based Outcome Health, was convicted in April 2023 on thirteen federal fraud counts for his role in a scheme that generated roughly $1 billion by deceiving advertisers, lenders, and investors. He was sentenced in June 2024 to two years and three months in federal prison.1U.S. Department of Justice. Three Former Executives Sentenced in $1B Corporate Fraud Scheme
His Role at Outcome Health
Purdy met co-founder and CEO Rishi Shah when the two were in college.2U.S. Securities and Exchange Commission. SEC Amended Complaint, Shah et al. He joined Outcome Health in 2012 as COO and picked up the CFO title in April 2015. In those roles he oversaw financial reporting, managed communications with the accounting staff, and presented financial information to institutional investors during the company’s 2017 capital raise. He was forced to resign in February 2018 after the fraud came to light.3U.S. Securities and Exchange Commission. SEC Complaint, Shah et al.
Outcome Health installed television screens and tablets in doctors’ offices around the country and sold advertising on those devices, mainly to pharmaceutical companies pitching drugs at the point of care. By May 2017, the company had raised nearly $600 million from investors including Goldman Sachs, Alphabet’s CapitalG fund, and the Pritzker family, reaching a reported valuation of $5 billion.4Business Insider. Outcome Health Raises $500 Million at $5.5 Billion Valuation
What the Fraud Involved
Federal prosecutors said Outcome Health executives ran a multi-year scheme from 2011 through 2017 with two connected sides. First, the company sold advertising inventory on screens it did not actually have and consistently under-delivered on campaigns. Employees falsified affidavits and “proofs of performance” so contracts appeared to be fully delivered, and executives inflated patient engagement metrics on the tablets to make campaigns look more effective than they were. Prosecutors estimated the overbilling of pharmaceutical clients came to at least $45 million.5U.S. Department of Justice. Former Executives of Outcome Health Convicted in $1B Corporate Fraud Scheme
Second, the inflated ad revenue flowed into Outcome Health’s audited financials. The SEC found revenue was overstated by at least $14.3 million in 2015 and $30 million in 2016.6U.S. Securities and Exchange Commission. SEC Litigation Release No. 24675 Prosecutors alleged Purdy specifically directed the fabrication of data so the company’s outside auditor would sign off on the overstated numbers.5U.S. Department of Justice. Former Executives of Outcome Health Convicted in $1B Corporate Fraud Scheme Those numbers were then used to raise roughly $110 million in debt in April 2016, $375 million in debt in December 2016, and $487.5 million in equity in early 2017 from Goldman Sachs, CapitalG, and others.1U.S. Department of Justice. Three Former Executives Sentenced in $1B Corporate Fraud Scheme
Much of the money went to the founders. The April 2016 debt round paid a $30.2 million dividend to Shah and $7.5 million to co-founder Shradha Agarwal. The 2017 equity round produced a combined $225 million dividend to the two.5U.S. Department of Justice. Former Executives of Outcome Health Convicted in $1B Corporate Fraud Scheme
Charges, Trial, and Verdict
On November 25, 2019, a federal grand jury in the Northern District of Illinois returned a superseding indictment charging Purdy alongside Shah, Agarwal, and former executive vice president Ashik Desai.7U.S. Department of Justice. Former Executives and Employees of Health Technology Start-Up Charged in $1 Billion Scheme to Defraud Purdy pleaded not guilty on December 9, 2019, and was released on bond after surrendering his passport.8Chicago Tribune. Former Outcome Health Executive Enters First Guilty Plea Desai pleaded guilty to wire fraud in 2019 and cooperated with prosecutors; two former analysts, Kathryn Choi and Oliver Han, pleaded guilty to conspiracy to commit wire fraud in 2020.9Yahoo Finance. Second Former Outcome Health Analyst Sentenced
Purdy, Shah, and Agarwal stood trial together before U.S. District Judge Thomas Durkin in a proceeding that lasted about ten weeks.10Courthouse News Service. Disgraced Chicago Tech Star Gets 7 1/2 Years in Jail Desai was the government’s central witness. Judge Durkin later said his cooperation was “vital” and that the other three likely would not have been convicted without it.11Yahoo News. Former Outcome Health Exec Ashik Desai Sentenced
Purdy’s defense argued he did not know about the fraud. His attorney, Theodore Poulos, told jurors Desai was the one falsifying reports and that Purdy’s COO and CFO titles overstated his actual authority given his youth and lack of an accounting background. Poulos also argued that fluctuations in screen availability were a normal part of how contracts were sold, not fraud.12Chicago Tribune. Attorney for Former Outcome Exec Defends Him Against Fraud Charges
On April 11, 2023, the jury convicted all three defendants. Purdy was found guilty on thirteen counts: five counts of mail fraud, five counts of wire fraud, two counts of bank fraud, and one count of making false statements to a financial institution.5U.S. Department of Justice. Former Executives of Outcome Health Convicted in $1B Corporate Fraud Scheme Shah was convicted on 19 counts and Agarwal on 15.13FDIC Office of Inspector General. Former Executives of Outcome Health Convicted in $1B Corporate Fraud Scheme
Purdy’s Sentence
Prosecutors sought $455 million in restitution from the three convicted executives and asked for substantial prison terms.14Chicago Tribune. Prosecutors Recommend 15 Years in Prison for Former Outcome Health CEO Judge Durkin sentenced Purdy to two years and three months in prison.1U.S. Department of Justice. Three Former Executives Sentenced in $1B Corporate Fraud Scheme Shah received seven and a half years plus three years of supervised release.10Courthouse News Service. Disgraced Chicago Tech Star Gets 7 1/2 Years in Jail Agarwal received three years of confinement at a halfway house.15Chicago Tribune. Former Outcome Health Leaders Appeal Their Fraud Convictions
Restitution has not been finalized. The defendants argue that recent Supreme Court precedent requires jury findings that were never made in their case, and Judge Durkin has yet to set a final amount.16Law360. Outcome Execs Argue High Court Ruling Ends Restitution Bid
The Parallel SEC Case
On the same day as the criminal indictment, the Securities and Exchange Commission filed a civil fraud complaint against Purdy, Shah, Agarwal, and Desai, charging violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, along with aiding and abetting Outcome Health’s violations of those provisions. The SEC sought disgorgement, penalties, injunctive relief, and officer-and-director bars.17U.S. Securities and Exchange Commission. SEC Litigation Release No. 24735 Desai settled with the SEC in early 2020. Reporting after the criminal convictions indicated the remaining defendants were likely to settle the SEC case as well, though a final resolution for Purdy has not been confirmed in available records.18Crain’s Chicago Business. Outcome Health Execs Likely to Settle SEC Case
Where the Case Stands Now
Shah and Agarwal filed notices of appeal with the U.S. Court of Appeals for the Seventh Circuit in July 2024.15Chicago Tribune. Former Outcome Health Leaders Appeal Their Fraud Convictions Shah retained former acting U.S. Solicitor General Neal Katyal for the appeal, which focuses in part on what the defense describes as the government’s improper over-restraint of millions of dollars in unrelated property, an issue the defense argues impaired Shah’s ability to hire his preferred counsel. During oral arguments on February 10, 2026, the Seventh Circuit panel questioned the Department of Justice about the asset restraint and the introduction of certain grand jury statements, and the judges appeared critical of the government’s handling of those issues.19Law360. 7th Circ. Mulls Outcome Health Execs’ $1B Fraud Convictions Available records do not confirm whether Purdy joined that appeal.