Minneapolis, Feb 19 (.) A California man has been found guilty of orchestrating a years-long fraud scheme that siphoned more than $1.2 million from Optum, Inc., federal prosecutors announced Wednesday.
US Attorney Daniel N. Rosen of the District of Minnesota said that Karan Gupta, 47, was convicted following a six-day jury trial in US District Court in Minneapolis. The jury found Gupta guilty of one count of conspiracy to commit wire fraud, 10 counts of wire fraud, and one count of money laundering conspiracy. The case was presided over by US District Court Judge Kate M. Menendez.
According to court documents and trial evidence, Gupta served as a senior director of data analytics at Optum, a subsidiary of UnitedHealth Group headquartered in Minnesota. At the peak of his career, Gupta earned an annual salary exceeding $260,000.
Prosecutors said that in 2015, Gupta recruited a lifelong friend for a managerial data engineering position at Optum, despite the friend being unqualified. Gupta provided the friend with a falsified résumé, which helped secure the job. Gupta then became his supervisor.
For nearly four years, the friend performed no work for the company while collecting a salary that started above $100,000 and increased annually through raises and bonuses. Evidence presented at trial showed the friend met virtually no colleagues, sent almost no emails, and frequently failed to log into his company computer for extended periods.
In exchange, the friend paid Gupta more than half of his salary in kickbacks. The pair devised methods to conceal the payments. Initially, the friend withdrew cash from his New Jersey bank account and deposited it into a New Jersey branch of Gupta’s bank, allowing Gupta to access the funds from California. Later, the friend opened a separate checking account to receive direct deposits from Optum and sent Gupta the associated debit card, which Gupta used to withdraw cash from ATMs in California.
The scheme came to light after Gupta was terminated in November 2019 for a separate fraud uncovered by Optum. The company launched an internal investigation and referred the matter to federal authorities. Prosecutors said the total losses to Optum exceeded $1.2 million.
“Those who manufacture fraudulent schemes to appropriate money from legitimate businesses must be held accountable for their criminal conduct,” Rosen said in a statement. “Kickback schemes and no-show jobs undermine legitimate businesses, and the perpetrators must suffer the consequences of their actions.”
Rick Evanchec, Acting Special Agent in Charge of the FBI’s Minneapolis Field Office, said Gupta abused his position of trust to create a “ghost employee” arrangement for personal gain.
“The FBI is committed to holding those in positions of power accountable, particularly when the cost of their actions are ultimately passed along to hardworking Americans,” Evanchec said.
The case was investigated by the Federal Bureau of Investigation. Assistant US Attorneys Matthew D. Forbes and Rebecca E. Kline prosecuted the case.
Gupta’s sentencing hearing has not yet been scheduled. . .