Former Biofourmis CEO to Face Fraud Charges Over $16.5 Million Falsified Invoices
The founder and former chief executive of healthcare startup Biofourmis Holdings will face criminal charges in Singapore for allegedly orchestrating a scheme involving falsified invoices worth US$16.5 million directed at the country's Ministry of Health. The Singapore Police Force announced Tuesday that the former executive will be charged on Wednesday with multiple financial crimes, including falsification of accounts, fraud by false representation, and forgery.
Background and Context
Biofourmis, founded in Singapore in 2015, emerged as a prominent healthtech company combining artificial intelligence with digital therapeutics. The company secured substantial funding from major venture capital firms including SoftBank, Sequoia Capital, MassMutual Ventures, and Singapore's state-linked EDBI. In 2019, the startup relocated its headquarters to Boston, reflecting its global ambitions. The company specialized in remote patient monitoring and personalized healthcare solutions, positioning itself at the intersection of technology and medicine.
Key Figures and Entities
The accused has been identified by The Business Times as Kuldeep Singh Rajput, Biofourmis's founder and former CEO. Rajput, who reportedly left a neuroscience PhD program at the National University of Singapore to launch the company, stepped down abruptly in August 2023. Following his departure from Biofourmis, Rajput founded OutcomesAI, another healthtech venture that partnered with Singapore's SingHealth cluster in 2024 to integrate artificial intelligence models. As of recent checks, Rajput remains listed as founder and CEO on OutcomesAI's website.
Legal and Financial Mechanisms
According to police allegations, Rajput instigated staff members to falsify company invoices between August 18, 2021, and February 28, 2022. The fraudulent documents allegedly claimed that Biofourmis Singapore had provided services worth nearly US$16.5 million to Singapore's Ministry of Health. Additionally, between March 28 and April 25, 2022, Rajput is accused of making false representations about Biofourmis Holdings and its subsidiaries. The charges also include allegations that Rajput forged an employee stock option plan offer letter to facilitate cheating a bank during a funds transfer. Under Singapore law, convictions for fraud by false representation carry penalties of up to 20 years imprisonment, while charges involving falsification of accounts or forgery for cheating carry maximum sentences of 10 years.
International Implications and Policy Response
The case raises significant questions about governance and oversight within Singapore's vibrant startup ecosystem, particularly in the healthtech sector where companies often handle sensitive patient data and government contracts. The allegations come at a time when regulators worldwide are increasing scrutiny of venture-backed startups and their financial practices. For Singapore's technology sector, which has positioned itself as a hub for innovation and startup growth, the case underscores the importance of robust compliance frameworks even for rapidly scaling companies. The involvement of a major government entity as the alleged victim in the invoice scheme also highlights potential vulnerabilities in public procurement processes.
Sources
This report draws on statements from the Singapore Police Force, reporting by The Business Times, and public information regarding Biofourmis and its investors. The investigation also references corporate records and publicly available information about the companies and individuals involved.
