Indian-Origin Man Convicted In $1.2 Million ‘Ghost Employee’ Fraud In US

Last Updated:February 19, 2026, 13:58 IST

US authorities have also stated that the friend paid Gupta more than half of his salary as kickbacks.

An Indian-origin man has been convicted of orchestrating an elaborate fraud scheme that cost a US-based company approximately $1.2 million by hiring his “lifelong friend" using a falsified resume.

The accused, identified as Karan Gupta, defrauded his employer by hiring his “lifelong friend". According to a release issued by the US Department of Justice, Gupta has been charged with fraud and conspiracy to commit money laundering for allegedly hiring an unqualified friend at Optum, a subsidiary of UnitedHealth Group, where he was employed as Senior Director of Data Analytics.

A press release by US Attorney Office, District of Minnesota, said that Gupta “gave the friend a false resume, which the friend used to secure the position". The appointment was made in 2015, NDTV reported.

The release added, “Gupta became his friend’s supervisor. Then, for almost four years, the friend did no work at all for Optum, all while collecting a salary that began above $100,000 and increased with raises and bonuses each year. 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."

“At Optum, Gupta earned an annual salary of more than $260,000 at the height of his career," the document said.

US authorities have also stated that the friend paid Gupta more than half of his salary as kickbacks.

Explaining the modus operandi, the Attorney’s Office said the friend, who lived in New Jersey, initially withdrew the kickback payments in cash from his bank account and then deposited the money at a New Jersey branch of Gupta’s bank, enabling Gupta to access the funds in California.

“Later, the friend opened a new checking account, designated that checking account to receive the Optum direct deposits, and sent Gupta the debit card, which Gupta then used to withdraw the fraud proceeds in cash from ATMs in California."

The scheme came to light after Gupta was terminated by Optum in 2019 in connection with a separate fraud case. The company subsequently referred the matter to federal authorities for investigation.

The Acting Special Agent in Charge of the FBI’s Minneapolis Field Office, Rick Evanchec, said Gupta abused his position of trust by hiring a ghost employee.

News world Indian-Origin Man Convicted In $1.2 Million ‘Ghost Employee’ Fraud In US

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