A federal jury in Minnesota has found Karan Gupta, a former senior executive of Optum, guilty of orchestrating a multi-year fraud scheme that siphoned more than US$1.2mn (million) from the healthcare services company through a 'no-show' job and kickback arrangement.
Rick Evanchec, acting special agent in charge of the federal bureau of investigation’s (FBI's)Minneapolis field office, says Mr Gupta abused his position of trust within a subsidiary of UnitedHealth Group, one of the largest healthcare providers in the US.
“Mr Gupta abused his position of trust as the senior director of a subsidiary of the largest healthcare provider in the US to defraud his company by hiring a ghost employee for a fictitious position, so that he could collect hundreds of thousands of dollars in kickbacks over many years,” Mr Evanchec says.
The verdict against Mr Gupta, is returned after a six-day trial in the US district court in Minneapolis. Mr Gupta is convicted on one count of conspiracy to commit wire fraud, 10 counts of wire fraud and one count of money laundering conspiracy, the
US attorney's office for the district of Minnesota announced.
According to court documents and evidence presented at trial, Mr Gupta served as senior director of data analytics at Optum, a subsidiary of UnitedHealth Group headquartered in Minnesota. At the peak of his tenure, Mr Gupta earned an annual salary exceeding US$260,000.
Prosecutors told the court that in 2015, Mr Gupta recruited and approved the hiring of a lifelong friend for a managerial data engineering position at Optum. The friend was unqualified for the role.
Evidence showed that Mr Gupta provided the friend with a fabricated résumé, which was used to secure the position. Once hired, the friend reported directly to Mr Gupta.
Over nearly four years, the friend allegedly performed no meaningful work for the company. Trial evidence revealed that he met no other Optum employees, sent almost no emails and, at times, did not log into his company-issued computer for weeks.
Despite this, the friend drew a salary that started at more than US$100,000 annually and rose with periodic raises and bonuses.
Federal prosecutors established that Mr Gupta demanded more than half of his friend’s unearned salary as kickbacks.
To conceal the arrangement, the pair devised a scheme to move funds across state lines. Initially, the friend, who lived in New Jersey, withdrew portions of his salary in cash and deposited the money at a New Jersey branch of Mr Gupta’s bank, enabling Mr Gupta to access the funds in California.
Later, the friend opened a new checking account to receive his Optum salary via direct deposit. He then provided Mr Gupta with the debit card linked to that account. Mr Gupta used the card to withdraw cash from ATMs in California, effectively accessing the fraud proceeds without direct electronic transfers between them.
Prosecutors say this structure was designed to obscure the financial trail and avoid detection.
The fraudulent arrangement came to light in November 2019, when Optum terminated Mr Gupta after uncovering a separate instance of fraud. A subsequent internal investigation exposed the ghost employment and kickback scheme, and the matter was referred to federal law enforcement authorities.
Authorities say Mr Gupta’s combined fraudulent activities against the company totalled more than US$1.2mn.
US attorney Daniel N Rosen, in a statement says that individuals who engineer fraudulent schemes against legitimate businesses must face consequences.
“Kickback schemes and no-show jobs undermine legitimate businesses, and the perpetrators must suffer the consequences of their actions,” Mr Rosen says.
Sentencing is expected at a later date. Mr Gupta now faces potential federal prison time, financial penalties and possible restitution orders linked to the US$1.2mn fraud.
