An Indian-origin company executive has been convicted in a major fraud case involving one of America’s largest healthcare firms. The scheme is valued at $1.2 million and centres around a ghost job created for personal gain.
Karan Gupta, a 47-year-old resident of California, was found guilty after a six-day federal jury trial in Minneapolis. He served as a Senior Director at Optum, a subsidiary of UnitedHealth.
According to the US Department of Justice, Gupta abused his senior position to hire a close friend from New Jersey. The friend was allegedly unqualified for the role but was placed in the company through Gupta’s influence.
Court records state that the hired individual performed virtually no work for nearly four years. Despite this, he received a salary exceeding $100,000 annually. Investigators said the employee was never seen by colleagues and often failed to log in for weeks.
At the height of his career, Gupta was earning more than $260,000 per year. Prosecutors revealed that he took almost half of his friend’s salary as kickbacks during this period.
Optum terminated Gupta’s employment in November 2019 after internal investigations uncovered unrelated fraud. The larger scheme later came under federal scrutiny.
The FBI in Minneapolis stated that Gupta deliberately created the ghost position to siphon company funds. Investigators said the fraud involved wire transfers and money laundering methods.
Authorities also noted that Gupta’s actions denied legitimate candidates a fair opportunity. By exploiting his leadership role, he caused both financial loss and ethical damage to the organisation.
Gupta now faces serious charges. These include conspiracy to commit wire fraud, money laundering conspiracy, and 10 counts of wire fraud. Sentencing details are expected at a later stage.
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