An Indian-origin man has been convicted in the US for defrauding his employer of over $1.2 million (approximately ₹11 crore) by hiring a lifelong friend for a high-paying role despite the individual being “unqualified”.
According to the US Attorney’s Office in Minneapolis, Karan Gupta, 47, was found guilty of one count of conspiracy to commit wire fraud, ten counts of wire fraud, and one count of money laundering conspiracy.
The 47-year-old worked as a Senior Director at Optum, a subsidiary of UnitedHealth Group headquartered in Minnesota. At the peak of his career, Gupta earned an annual salary of more than $260,000 (around ₹2.3 crore).
As per the press release, the scheme began in 2015, when Gupta recruited and approved the hiring of a lifelong friend for a managerial data engineering role at Optum. The friend allegedly used a false resume provided by Gupta to secure the position.
Once hired, Gupta became his supervisor. Authorities said that for nearly 4 years, the friend did no work for the company while drawing a salary that started above $100,000 and increased with raises and bonuses each year. “The friend met no one else at Optum, sent almost no emails, and regularly did not log into his Optum computer for weeks on end,” the press note read.
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Kickbacks routed through cash withdrawals
At Gupta’s direction, the friend paid more than half of his salary back to Gupta as kickbacks. To conceal the payments, the two allegedly devised multiple methods. Initially, the friend, who lived in New Jersey, withdrew cash from his account and deposited it into a New Jersey branch linked to Gupta’s bank so Gupta could access the money in California.
Later, the friend opened a separate checking account to receive salary deposits and handed Gupta the debit card, which he allegedly used to withdraw cash from ATMs in California.
The fraud came to light after Gupta was terminated in November 2019 for a separate fraud discovered by Optum. The company launched an internal investigation and later referred the case to federal law enforcement. Officials said Gupta’s fraudulent schemes against the company totalled more than $1.2 million.
US Attorney Rosen said in a statement that individuals who create fraudulent schemes to siphon money from legitimate businesses must be held accountable, adding that kickback schemes and no-show jobs undermine companies.
Rick Evanchec, Acting Special Agent in Charge of the FBI’s Minneapolis Field Office, said Gupta abused his position of trust by creating a “ghost employee” arrangement to collect hundreds of thousands of dollars in kickbacks over several years.
“The FBI is committed to holding those in positions of power accountable, particularly when the cost of their actions are ultimately passed along to hard working Americans,” he said.
