3 min readChandigarhFeb 20, 2026 03:51 PM IST
Karan Gupta, a former senior director at Optum, a subsidiary of UnitedHealth Group, has been convicted in a major ghost employee and kickback fraud scheme that cost the company more than $1.2 million.
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A federal jury in Minneapolis on February 18 found the California resident guilty on one count of conspiracy to commit wire fraud, 10 counts of wire fraud and one count of money laundering conspiracy following a six-day trial.
Sentencing for Gupta has not yet been scheduled. He faces the possibility of a substantial prison term, fines and restitution.
According to the US Attorney’s Office for the District of Minnesota and the FBI’s Minneapolis Field Office, Gupta allegedly orchestrated a years-long scheme in which he hired a lifelong friend, Shangraf Kaul of New Jersey, into a managerial data engineering role for which he was unqualified. Prosecutors said Gupta provided a false resume to secure the position and then became Kaul’s direct supervisor.
Between 2015 and 2019, Kaul allegedly performed no meaningful work for the company but still received an annual salary of more than $100,000, along with raises and bonuses. Trial evidence showed that he met virtually no colleagues, sent almost no work-related emails, and frequently did not log in to his company computer for extended periods.
At Gupta’s direction, more than half of Kaul’s unearned salary was funnelled back to him as kickbacks. Initially, Kaul withdrew cash from his New Jersey bank account and deposited it into a branch of Gupta’s bank, enabling Gupta to access the funds in California. Later, Kaul opened a separate account for direct deposits and mailed the debit card to Gupta, who withdrew money through ATMs in California.
Prosecutors said the no-show job arrangement and associated kickbacks defrauded Optum of hundreds of thousands of dollars in salary payments alone. The total fraud linked to Gupta’s conduct at the company exceeded $1.2 million.
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Gupta, who at one stage earned more than $260,000 annually, was terminated by Optum in November 2019 over a separate fraud matter. An internal review subsequently uncovered the broader scheme, which was referred to federal authorities.
Kaul pleaded guilty in 2025 to related charges, including money laundering conspiracy, under a plea agreement. He is awaiting sentencing.
The case was investigated by the FBI’s Minneapolis Field Office. The trial was held before US District Judge Kate M Menendez, with Assistant US Attorney Matthew Forbes leading the prosecution.
US Attorney Daniel N Rosen said individuals who engineer fraudulent schemes to siphon funds from legitimate businesses must be held accountable. Acting FBI Special Agent in Charge Richard Evanchec said Gupta abused a high-trust leadership role to enrich himself through a fictitious position and long-running kickback arrangement.
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The conviction highlights risks in corporate hiring and payroll oversight, particularly in senior technical roles. No additional co-conspirators have been publicly named, and authorities have not yet disclosed details regarding restitution or potential civil recovery.
