An Indian-origin former senior corporate executive in the United States has been sentenced to three years in prison for his role in a fraud scheme that caused more than ₹8.9 crore in losses to healthcare company Optum. Karan Gupta, 48, a California resident and former senior director at Optum, allegedly arranged a job for his longtime friend, allowing him to receive a six-figure salary despite performing little or no work for the company for more than three years.
According to the US Attorney’s Office for Minnesota, Gupta was sentenced on August 24 after being convicted of conspiracy to commit wire fraud, 10 counts of wire fraud and conspiracy to commit money laundering. A federal jury found him guilty on February 17 following a six-day trial.
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Friend Allegedly Given a No-Show Job
Court documents state that Gupta hired his longtime friend, 45-year-old Shangraf Kaul, as a data engineering manager on his team in late 2015. Prosecutors alleged that Kaul lacked the qualifications required for the position but was nevertheless appointed to the role.
According to the prosecution, Kaul performed no work at Optum for more than three years while continuing to receive a six-figure annual salary. Gupta allegedly demanded that Kaul return around 60% of his salary as kickbacks.
The alleged kickback payments were initially made through cash deposits into Gupta’s bank account. Later, the two reportedly used a separate checking account that Gupta could access. Prosecutors alleged that the arrangement was designed to conceal the movement of the money.
Company Investigation Exposed the Scheme
The alleged fraud came to light in November 2019, when Optum terminated Gupta over his involvement in a similar no-show employee fraud scheme. The company subsequently investigated the matter and referred it to federal law enforcement authorities.
US prosecutors argued that fraud against a private company cannot be treated simply as a business loss. They said such conduct can undermine the trust placed in major organisations, particularly those operating in the healthcare sector.
Prosecutors further maintained that fraud involving a healthcare provider can have consequences beyond the immediate financial loss because millions of Americans rely on healthcare services provided through such organisations.
Co-Conspirator Previously Pleaded Guilty
Gupta’s alleged co-conspirator, Shangraf Kaul, pleaded guilty in February 2025 to conspiracy to commit wire fraud. His guilty plea preceded the federal prosecution against Gupta, who was subsequently convicted by a jury.
The three-year prison sentence reflects Gupta’s role in the scheme and the financial harm caused to Optum. The case highlights how federal authorities in the United States are pursuing corporate fraud involving sham employment arrangements, salary kickbacks and concealed financial transactions.
The prosecution alleged that Gupta used his position within the company to facilitate the fraudulent employment arrangement and personally benefit from the salary being paid to Kaul. The case ultimately resulted in criminal convictions involving wire fraud and money laundering conspiracy, bringing the long-running investigation to a conclusion with Gupta’s prison sentence.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
