A former senior director of data analytics at Optum has been sentenced to three years in federal prison for creating a no-show job for a friend and pocketing kickbacks from their salary.
Karan Gupta, 48, of Walnut Creek, Calif., was sentenced Aug. 24 by U.S. District Judge Kate Menendez in Minnesota, according to an Aug. 25 Justice Department news release. Mr. Gupta was found guilty in February following a six-day jury trial on one count of conspiracy to commit wire fraud, 10 counts of wire fraud and one count of money laundering conspiracy.
Mr. Gupta hired his friend Shangraf Kaul to a data engineering manager position on his team in late 2015 despite Mr. Kaul’s lack of qualifications for the role. For more than three years, Mr. Kaul performed no work at Optum while collecting a six-figure salary, according to the Justice Department. Mr. Gupta demanded approximately 60% of Mr. Kaul’s unearned pay in kickbacks, which the two initially concealed through cash deposits into Mr. Gupta’s bank account before shifting to a designated checking account to which he had access.
The scheme was discovered after Optum fired Mr. Gupta in November 2019 for engaging in a separate no-show employee fraud scheme, which the company investigated and referred the case to the FBI. In total, Mr. Gupta’s fraud against Optum exceeded $950,000, according to the Justice Department.
“Defrauding a private company is not a victimless crime,” United States Attorney Daniel Rosen said. “Gupta’s actions ultimately undermine a healthcare provider that millions of Americans depend on, and today’s sentencing reflects the seriousness of his crimes.”
Mr. Kaul, 45, of East Stroudsburg, Pa., pleaded guilty in February 2025 to one count of conspiracy to commit wire fraud and is awaiting sentencing.
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