Karan Gupta, an Indian American former director at health care company Optum, has been sentenced to three years in prison for his role in a scheme that defrauded the company of more than $950,000.
Gupta, who is based in California, was sentenced Aug. 24 after being convicted of conspiracy to commit wire fraud, 10 counts of wire fraud and conspiracy to commit money laundering, according to the U.S. Attorney’s Office for the District of Minnesota. He was found guilty by a federal jury Feb. 17 following a six-day trial.
According to court documents, Gupta arranged a no-show job for his longtime friend, Shagraf Kaul of Pennsylvania. He hired Kaul as a data engineering manager in 2015 despite Kaul’s lack of the necessary qualifications. Prosecutors said Kaul performed no work at Optum for more than three years while receiving a six-figure salary.
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Gupta allegedly demanded that Kaul return 60% of his salary. The payments were initially made through cash deposits. Later, the two used a separate checking account that Gupta could access to conceal the money transfers.
The scheme was uncovered after Optum terminated Gupta in November 2019 over his involvement in a similar no-show employee fraud scheme. The company investigated the matter and referred it to federal law enforcement.
“Defrauding a private company is not a victimless crime. Gupta’s actions ultimately undermine a healthcare provider that millions of Americans depend on, and today’s sentencing reflects the seriousness of his crimes,” said U.S. Attorney Daniel N. Rosen.
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“The FBI is committed to investigating complex fraud schemes that exploit trust and defraud victims through deliberate deception, including schemes in which the defendant creates a no-show position at the very company that employs him, using that position to victimize his own employer. The jury’s verdict and today’s sentencing demonstrate the seriousness with which our justice system treats fraud,” said FBI Minneapolis Special Agent in Charge Christopher D. Dotson. “The FBI, in strong partnership with the U.S. Attorney’s Office, is sending a clear message that those who use their positions of trust to orchestrate sophisticated schemes, conceal criminal proceeds, and defraud the companies that employ them will be held accountable.”
Gupta’s co-conspirator, Kaul, pleaded guilty Feb. 26, 2025, to one count of conspiracy to commit wire fraud and is currently awaiting sentencing.