Karan Gupta former Optum director jailed to 3 years in prison over $950,000 fraud scheme/Image: Getty Images
An Indian-origin former director at healthcare company Optum has been sentenced to three years in prison for his role in a scheme that defrauded the company of more than $950,000. Gupta, who served as a senior director at Optum, was found guilty by a federal jury on February 17 following a six-day trial. Gupta arranged a no-show job for his longtime friend, Shangraf Kaul, 45, of East Stroudsburg, Pennsylvania, according to court documents. Gupta hired Kaul as a data engineering manager on his team in late 2015, despite Kaul allegedly lacking the qualifications for the position. The scheme was uncovered after Optum terminated Gupta in November 2019 over his involvement in a similar no-show employee fraud.
Prosecutors said Kaul performed no work at Optum for more than three years while receiving a six-figure salary. Rosen said the fraud affected more than just the company. “Defrauding a private company is not a victimless crime,” Rosen said, adding that Gupta’s actions undermined a healthcare provider relied upon by millions of Americans.
The company investigated the matter and referred it to federal law enforcement. US Attorney Daniel N.