An Indian national executive has been convicted in the United States for orchestrating a $1.2 million fraud scheme that involved placing an unqualified “lifelong friend” on his employer’s payroll.
According to the U.S. Department of Justice, Karan Gupta was charged with fraud and conspiracy to commit money laundering in connection with the scheme. Prosecutors said Gupta abused his position as senior director of data analytics at Optum, a subsidiary of UnitedHealth Group, to funnel company funds through the fraudulent hiring.
Authorities allege that Gupta used his leadership role to secure employment and payments for the associate despite the individual lacking the qualifications required for the job. The arrangement ultimately cost the company approximately $1.2 million.
In a statement, the U.S. Attorney’s Office for the District of Minnesota said that Gupta “gave the friend a false resume, which the friend used to secure the position.”
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The release added, “Gupta became his friend’s supervisor. Then, for almost four years, the friend did no work at all for Optum, all while collecting a salary that began 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 hiring was made in 2015.
Court documents state that “At Optum, Gupta earned an annual salary of more than $260,000 at the height of his career,” underscoring the seniority of the role he held within the company.
Prosecutors also allege that the scheme involved kickbacks. Authorities said the friend funneled more than half of his salary back to Gupta.
Detailing how the payments were handled, the U.S. Attorney’s Office for the District of Minnesota said the friend, who lived in New Jersey, initially withdrew cash from his own bank account and deposited it at a New Jersey branch of Gupta’s bank. That allowed Gupta, who was based in California, to access the funds.
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Investigators said the scheme evolved over time as the two men sought to move the money more directly.
“Later, the friend opened a new checking account, designated that checking account to receive the Optum direct deposits, and sent Gupta the debit card, which Gupta then used to withdraw the fraud proceeds in cash from ATMs in California.”
The arrangement came to light after Gupta was terminated by Optum in 2019 in connection with a separate fraud matter. The company subsequently referred the case to federal authorities for investigation.
Rick Evanchec, Acting Special Agent in Charge of the Federal Bureau of Investigation Minneapolis Field Office, said Gupta abused his position of trust by hiring what amounted to a ghost employee and using the role to siphon company funds.