Indian-origin tech exec hired friend 'to do nothing' in US firm for Rs 90 LPA, got Rs 45 LPA in kickbacks

The FBI called Karan Gupta’s actions an abuse of his position of trust, noting that such frauds ultimately burden 'hard‑working Americans'. (AI-generated image)

An Indian-origin former senior director at a major US healthcare firm has been convicted of orchestrating a long‑running fraud that involved hiring his close friend into a high‑paying “ghost job” and taking kickbacks worth nearly Rs 45 lakh. For four years, the friend did no work and yet, not only did he collect his salary every month, but he also received increments and bonuses every year.

According to the US Attorney’s Office in Minneapolis, 47‑year‑old Karan Gupta has been found guilty of conspiracy to commit wire fraud, ten counts of wire fraud, and one count of money‑laundering conspiracy after a six‑day trial in federal court.

Gupta worked as a senior director of data analytics at Optum, a subsidiary of UnitedHealth Group, one of the largest healthcare providers in the US. At the peak of his career, Gupta earned over $260,000 annually (approximately Rs 2.3 crore).

How the ghost-employee scam worked

As per court documents, the scheme began in 2015, when Gupta used his authority to recruit a lifelong friend into Optum for a managerial data‑engineering role. The friend was entirely unqualified for the job, and Gupta even provided a fake résumé to help secure the hire.

Once appointed, the friend—who was supervised directly by Gupta—did no work whatsoever. "For almost four years, the friend did no work at all for Optum, all while collecting a salary that began above $100,000 (about Rs 91 lakh) and increased with raises and bonuses each year," the attorney's office stated. "The friend met no one else at Optum, sent almost no emails, and regularly did not log into his Optum computer for weeks on end."

But the purpose of the “job” was simple: kickbacks. Under pressure from Gupta, the friend funneled more than half of his salary back to him every year—amounting to roughly Rs 45 lakh.

Elaborate measures to hide the kickbacks

The duo also created a multi‑step method to disguise the fraudulent payments. Initially, the friend withdrew cash in New Jersey and deposited it into Gupta’s bank branch so Gupta could access it in California.

Later, the friend opened a new checking account for his salary deposits and mailed Gupta the debit card so that Gupta could withdraw the money directly from ATMs.

The scheme only came to light after Optum terminated Gupta in 2019 for an unrelated fraud. During the company’s internal review, the ghost‑employee racket was discovered and reported to federal authorities. Investigators concluded Gupta defrauded Optum of more than $1.2 million (about Rs 11 crore) in total.

Prosecution and FBI: Gupta abused his position, must suffer consequences

In a press release, US Attorney Daniel Rosen asserted that “kickback schemes and no‑show jobs undermine legitimate businesses… perpetrators must suffer the consequences.”

The FBI called Gupta’s actions an abuse of his position of trust, noting that such frauds ultimately burden “hard‑working Americans.”

“Mr Gupta abused his position of trust as the senior director of a subsidiary of the largest healthcare provider in the United States 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,” said Rick Evanchec, the acting special agent in charge of the FBI’s Minneapolis Field Office. “The FBI is committed to holding those in positions of power accountable, particularly when the cost of their actions is ultimately passed along to hard-working Americans.”