Building a health-technology startup on nothing but hot air may be easier than you’d think — at least, according to a federal indictment unsealed Monday and related civil charges brought by the Securities and Exchange Commission.
Federal prosecutors charge that executives at Outcome Health, a high-flying startup, are guilty of defrauding their clients, lenders, and investors, leading to nearly $1 billion in fraudulently obtained investments and debt. The SEC made its own complaint, alleging that Outcome raised $487 million by falsely portraying itself as a success to its investors, which included Goldman Sachs, Google-affiliated CapitalG, and the Pritzker Group.
Outcome was founded in 2006 as Context Media by two Chicago entrepreneurs: Rishi Shah, now 33, and Shradha Agarwal, 34. According to the SEC, Shah owned 80% of the startup and Agarwal the other 20%.
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There is almost unlimited profit in cheating sick people, harvesting their data and misleading greedy investors. Many of these schemes are not even identified or prosecuted. The failure of the CDC, FDA, and FTC to regulate or enforce the laws that were supposed to protect patients, has not gotten any media attention. The story about Google exploiting patient data, is already old news as our politicians and policy makers, continue to look the other way.
This is the Market Based Healthcare at its full expression, unmitigated greed is the order of the day. Medicare For ALL would have done away with these types of scams, and the further exploitation of sick people.
Some of your points are well taken, but your conclusion is not. Medicare for ALL (and I understand the current en banc position of all remaining Demo prez candidates includes without any limits all “illegal aliens” or “undocumented Democrats” or whomever) will bankrupt this country, a result you know is obvious which is why Liz Warren, for one, refuses to acknowledge it. So, bankrupt but equally miserable, still without sufficient health care, but our data, thank God, is safe even as our children die. Larger families – one response. It seems that those who support Medicare for ALL really want to move backwards, possibly even to the plague-infested Middle Ages, witness the fetid streets of SF or LA or Seattle or Portland.