Ex-Optum Employee Convicted in $1.2M Fraud Scheme

Authorities say Karan Gupta hired unqualified friend for no-show job, collected hundreds of thousands in kickbacks

Published on Feb. 23, 2026

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A former senior director at UnitedHealth Group subsidiary Optum Inc. was found guilty of fraud charges after he hired an unqualified friend for a job in which the friend did no work, and the friend then paid hundreds of thousands of dollars in kickbacks to Gupta over several years, authorities said.

Why it matters

This case highlights the significant financial and reputational damage that can be caused by high-level corporate fraud and abuse of trust, especially at a major healthcare company like UnitedHealth Group. It raises concerns about internal controls and oversight at large organizations.

The details

Karan Gupta, 47, was convicted of conspiracy to commit wire fraud, money laundering conspiracy and 10 counts of wire fraud. As a senior director of data analytics at Optum, Gupta recruited and approved the hiring of his lifelong friend to a managerial data engineering position for which the friend was unqualified. The friend collected a salary of over $100,000 per year but did no actual work, and regularly paid more than half of his unearned salary to Gupta in kickbacks.

  • In 2015, Gupta recruited and approved the hiring of his friend at Optum.
  • For nearly 4 years, the friend collected a salary but did no work at Optum.
  • Gupta was terminated from Optum in November 2019 for a separate fraud.

The players

Karan Gupta

A 47-year-old former senior director of data analytics at Optum, a UnitedHealth Group subsidiary, who was convicted of fraud charges for hiring an unqualified friend for a no-show job and collecting hundreds of thousands in kickbacks.

Optum Inc.

A subsidiary of UnitedHealth Group, one of the largest healthcare providers in the United States, where Gupta was employed as a senior director.

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What they’re saying

“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.”

— Rick Evanchec, Acting Special Agent in Charge of the FBI's Minneapolis Field Office (U.S. Department of Justice)

What’s next

Gupta will be sentenced at a later date and faces a maximum penalty of 20 years in prison for each wire fraud count, 20 years for the money laundering conspiracy, and 5 years for the conspiracy to commit wire fraud.

The takeaway

This case highlights the need for robust internal controls and oversight at large organizations to prevent high-level fraud and abuse of trust, which can have significant financial and reputational consequences.