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Hired friend, 'to do nothing': How Indian-origin man pulled off $1.2 million fraud at a US firm
Karan Gupta hired a lifelong friend for a managerial data engineering role at Optum, despite the friend lacking the required qualifications.
An Indian-origin man has been convicted in the United States for orchestrating a long-running fraud that cost his employer more than $1.2 million.
Karan Gupta, 47, was found guilty after a six-day jury trial at the US District Court in Minneapolis. The verdict was delivered before Judge Kate M. Menendez.
According to a statement issued by the US Department of Justice, Gupta was convicted on one count of conspiracy to commit wire fraud, ten counts of wire fraud, and one count of conspiracy to commit money laundering.
Court records show that Gupta worked as a Senior Director of Data Analytics at Optum, Inc., a subsidiary of UnitedHealth Group based in Minnesota.
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Gupta earned an annual salary exceeding $260,000 at Optum.
Unqualified friend hired for ‘no-show’ job
In 2015, Gupta arranged for a lifelong friend to be hired for a managerial data engineering role at Optum, despite the friend lacking the required qualifications.
Reportedly, Gupta gave a fabricated résumé, which helped his friend secure the job. After the appointment, Gupta became his supervisor.
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Over the next four years, the friend reportedly carried out no meaningful work for the company. Evidence presented in court showed he met no other employees, sent almost no emails and frequently failed to log into his work computer for weeks at a time.
Despite this, he received a starting salary of over $100,000, along with annual raises and bonuses.
Kickbacks and concealment plan
In return, the friend paid Gupta more than half of the salary he received from Optum. The pair devised methods to hide these payments.
Initially, the friend withdrew cash from his bank account in New Jersey and deposited it into a New Jersey branch of Gupta’s bank, allowing Gupta to access the money in California.
Later, the friend opened a separate bank account for his salary deposits and handed the debit card to Gupta. Prosecutors said Gupta used the card to withdraw cash from ATMs in California.
Fraud uncovered after termination
The fraud came to light after Gupta was dismissed in November 2019 for a separate fraud uncovered by Optum. A subsequent internal investigation revealed the wider misconduct, and the company referred the matter to federal authorities.
“Those who manufacture fraudulent schemes to appropriate money from legitimate businesses must be held accountable for their criminal conduct,” said US Attorney Rosen. “Kickback schemes and no-show jobs undermine legitimate businesses, and the perpetrators must suffer the consequences of their actions.”
Officials said Gupta’s fraudulent activities caused losses totalling more than $1.2 million.
