Indian-originExecutive Karan Gupta Convicted in $1.2 Million Salary Kickback Fraud in US
An Indian-origin corporate executive has been convicted in the United States for orchestrating a multi-million-dollar salary fraud scheme involving a close friend.
Karan Gupta, 47, was found guilty of stealing more than $1.2 million (approximately ₹11 crore) from his employer through an elaborate kickback arrangement. Gupta served as a Senior Director at Optum, a Minnesota-based subsidiary of UnitedHealth Group, where he earned an annual salary exceeding $260,000 (around ₹2.3 crore).
How the Scheme Worked
According to federal investigators, the fraud began in 2015 when Gupta hired a lifelong friend for a high-paying managerial data engineering role at Optum. The friend allegedly secured the position using a fake resume prepared by Gupta.
After being hired, the friend reported directly to Gupta. Authorities said that for nearly four years, the friend performed little to no legitimate work. He reportedly had minimal interaction with colleagues, sent very few emails, and at times did not log into his work computer for weeks — all while collecting a six-figure salary, raises, and bonuses.
Kickbacks and Concealment
Prosecutors revealed that Gupta instructed his friend to return more than half of his salary as kickbacks.
Initially, the friend — who lived in New Jersey — withdrew cash from his bank account and deposited it into a New Jersey branch linked to Gupta’s bank, allowing Gupta to access the funds from California.
Later, to avoid detection, the friend opened a separate checking account to receive his paychecks and handed the debit card to Gupta, who used it to withdraw cash from ATMs in California.
Investigation and Conviction
The scheme unraveled in late 2019 when Optum terminated Gupta over a separate misconduct issue. A subsequent internal review exposed the kickback arrangement, prompting the company to alert federal authorities.
Investigators determined that Gupta’s various fraudulent activities cost the company over $1.2 million.
Following a federal trial, Gupta was convicted on fraud-related charges. Sentencing details are expected to follow.
The case highlights growing scrutiny over corporate governance and internal fraud in major multinational firms operating in the United States.