An Indian-origin former director at healthcare company Optum has been sentenced to three years in prison for his role in a scheme that defrauded the company of more than $950,000.Karan Gupta, 48, based in California, 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,according to the US Attorney’s Office for Minnesota.Gupta, who served as a senior director at Optum, was found guilty by a federal jury on February 17 following a six-day trial.According to court documents, Gupta arranged a no-show job for his longtime friend, Shangraf Kaul, 45, of East Stroudsburg, Pennsylvania.Gupta hired Kaul as a data engineering manager on his team in late 2015, despite Kaul allegedly lacking the qualifications for the position. Prosecutors said Kaul performed no work at Optum for more than three years while receiving a six-figure salary.Gupta allegedly demanded that Kaul return about 60% of his salary as kickbacks. The payments were initially made through cash deposits into Gupta’s bank account before the pair used a separate checking account that Gupta could access to conceal the money transfers.The scheme was uncovered after Optum terminated Gupta in November 2019 over his involvement in a similar no-show employee fraud. The company investigated the matter and referred it to federal law enforcement.US Attorney Daniel N. Rosen said the fraud affected more than just the company.“Defrauding a private company is not a victimless crime,” Rosen said, adding that Gupta’s actions undermined a healthcare provider relied upon by millions of Americans.Gupta’s co-conspirator, Kaul, pleaded guilty in February 2025 to conspiracy to commit wire fraud.
