Who is Karan Gupta? Indian-origin ex-Optum executive sentenced to 3 years for ₹9 million fraud

Karan Gupta, the 48-year-old Indian-born former chief executive of healthcare company Optum, was sentenced to 36 months in prison in the US for his role in a scheme that defrauded his employer of more than $950,000 (approximately ₹9.07 million crowns).

Gupta, who lives in Walnut Creek, California, was sentenced on August 24 before US District Judge Kate M Menendez. He was found guilty by a federal jury on February 17 after a six-day trial, according to the US Department of Justice.

Who is Karan Gupta?

Gupta was a senior director at Optum, where he oversaw a team that included his longtime friend Shangraf Kaul.

According to court documents and evidence presented in court, Gupta hired Kaul as a data engineering manager on his team in late 2015, even though Kaul allegedly lacked the qualifications for the position.

Prosecutors said Kaul did no work at Optum for more than three years while earning a six-figure salary.

Gupta allegedly used his position as Kaul’s superior to facilitate the arrangement and demanded that Kaul return approximately 60% of his salary to him as kickbacks.

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What was the alleged fraud?

According to the US Department of Justice, Gupta and Kaul were involved in a no-show work arrangement that ran between 2015 and 2020.

Kaul was employed by Optum but allegedly did not perform the work associated with his position. Meanwhile, Gupta was receiving part of Kaul’s salary through commissions.

The payments were initially made through cash deposits into Gupta’s bank account. Gupta later devised a way for the two to conceal the transfers using a separate checking account that he had access to, prosecutors said.

The total fraud against Optum exceeded $950,000, according to the Justice Department.

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How was Gupta caught?

The scheme was eventually exposed after Optum terminated Gupta in November 2019 for his involvement in a similar no-show employee scam.

The company investigated the matter and referred the case to federal law enforcement.

The case was subsequently investigated by the FBI, which was prosecuted by the US Attorney’s Office for the District of Minnesota.

What was Gupta convicted of?

A federal jury found Gupta guilty on February 17, 2026, after a six-day trial. He was convicted of one count of conspiracy to commit wire fraud, 10 counts of wire fraud and one count of conspiracy to commit money laundering.

On August 24, he was sentenced to 36 months in prison.

US Attorney Daniel N Rosen said the case showed that fraud against a private company was not a victimless crime.

“Defrauding a private company is not a victimless crime,” Rosen said, adding that Gupta’s actions undermined a health care provider that millions of Americans rely on.

FBI Minneapolis Special Agent in Charge Christopher D. Dotson said the case demonstrated the seriousness with which the justice system treats fraud involving undisclosed positions and hidden proceeds of crime.

What happened to Gupta’s co-conspirator?

Gupta’s longtime friend and alleged co-conspirator Shangraf Kaul, 45, of East Stroudsburg, Pennsylvania, pleaded guilty on February 26, 2025 to one count of conspiracy to commit wire fraud.

According to the US Department of Justice, Kaul is currently awaiting sentencing.

The case was investigated by the FBI, while Assistant US Attorneys Matthew D. Forbes and Rebecca E. Kline prosecuted the case.