Ashik Desai, former chief growth officer of healthcare technology startup Outcome Health, settled a lawsuit filed by the U.S. Securities and Exchange Commission alleging he had joined several former coworkers in defrauding clients to the tune of $487 million, the Chicago Tribune reports.
The lawsuit, filed in November, alleged Mr. Desai was not only aware of but also participated in the fraudulent activities, and demanded he repay the illegally obtained funds, along with interest and other penalties.
The settlement was filed in Chicago federal court on Feb. 4, the Tribune reports, with monetary relief and penalties to be decided at a later date. The SEC lawsuit still stands against the other three former executives named alongside Mr. Desai.
Additionally, all four executives are currently facing criminal charges for their alleged participation in the fraudulent activity; the company's new leadership has admitted to the illegal activity and pledged to reimburse victims. Mr. Desai reportedly pled guilty to the criminal charges in December, while former CEO Rishi Shah, former president Shradha Agarwal and former CFO and COO Brad Purdy have all pled not guilty.
View a timeline of the Outcome Health fraud scheme and its aftermath here.
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