47-Year-Old Convicted in $1.2M Fraud Scheme

Karan Gupta hired unqualified friend for no-show job, collected kickbacks for years

Published on Feb. 28, 2026

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A 47-year-old man named Karan Gupta has been found guilty after a six-day trial on multiple counts, including fraud and money laundering conspiracy, for hiring an unqualified friend for a position at a healthcare subsidiary where the friend did no work and paid half his unearned salary in kickbacks to Gupta, whose fraud totaled more than $1.2 million.

Why it matters

This case highlights the importance of holding those in positions of power accountable for abusing their authority and defrauding legitimate businesses, which ultimately impacts hard-working Americans. Kickback schemes and no-show jobs undermine the integrity of companies and the economy.

The details

In 2015, Gupta recruited and approved the hiring of a lifelong friend to work at Optum in a managerial data engineering position for which the friend was unqualified. Gupta gave the friend a false resume, which the friend used to secure the position. Gupta then became the friend's supervisor. 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 Gupta's demand, his friend paid Gupta more than half of his unearned Optum salary in kickbacks. Gupta and the friend also agreed on a plan to conceal the kickback payments.

  • In 2015, Gupta recruited and approved the hiring of his friend.
  • For almost four years, the friend collected a salary of over $100,000 while doing no work.

The players

Karan Gupta

A 47-year-old man who was found guilty of fraud and money laundering conspiracy for hiring an unqualified friend for a position where the friend did no work and paid half his unearned salary in kickbacks to Gupta, whose fraud totaled more than $1.2 million.

Optum

A subsidiary of the largest healthcare provider in the United States where Gupta worked as the Senior Director and where he hired his unqualified friend.

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What they’re saying

“Those who manufacture fraudulent schemes to appropriate money from legitimate businesses must be held accountable for their criminal conduct.”

— US Attorney Rosen

“Kickback schemes and no-show jobs undermine legitimate businesses, and the perpetrators must suffer the consequences of their actions.”

— US Attorney Rosen

“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

“The FBI is committed to holding those in positions of power accountable, particularly when the cost of their actions are ultimately passed along to hard working Americans.”

— Rick Evanchec, Acting Special Agent in Charge of the FBI's Minneapolis Field Office

What’s next

The judge will decide on Tuesday whether to allow Karan Gupta to be released on bail.

The takeaway

This case highlights the importance of corporate accountability and the need to root out fraud and abuse of power, which can have far-reaching consequences for businesses and the public. It serves as a warning to those in positions of trust who may be tempted to exploit their authority for personal gain.