NRI PULSE STAFF REPORT
Minneapolis, MN, August 27, 2026 — Karan Gupta, a former senior director at healthcare services company Optum Inc., has been sentenced to three years in federal prison for orchestrating a scheme in which a longtime friend was placed in a “no-show” job and paid a six-figure salary despite performing no work, federal prosecutors said.
Gupta, 48, of Walnut Creek, California, was sentenced Aug. 24 by U.S. District Judge Kate M. Menendez on one count of conspiracy to commit wire fraud, 10 counts of wire fraud and one count of conspiracy to commit money laundering, according to the U.S. Attorney’s Office for the District of Minnesota.
A federal jury found Gupta guilty on Feb. 17 following a six-day trial.
According to court documents and evidence presented at trial, Gupta hired his lifelong friend, Shangraf Kaul, 45, of East Stroudsburg, Pennsylvania, as a data engineering manager on his Optum team in late 2015.
Federal prosecutors said Kaul lacked the qualifications for the position and performed no work for Optum for more than three years while continuing to receive a six-figure salary.
Gupta, who supervised Kaul, required him to return approximately 60% of his salary as kickbacks, prosecutors said. The payments were initially made through cash deposits into Gupta’s bank account and later through a designated checking account to which Gupta had access, according to the government.
Prosecutors said the scheme operated between 2015 and 2020 and resulted in losses to Optum exceeding $950,000.
The arrangement came to light after Optum terminated Gupta in November 2019 over what prosecutors described as a separate, similar no-show employee fraud. The company subsequently conducted an investigation and referred the matter to federal law enforcement.
“Defrauding a private company is not a victimless crime,” U.S. Attorney Daniel N. Rosen said in announcing the sentence. “Gupta’s actions ultimately undermine a healthcare provider that millions of Americans depend on, and today’s sentencing reflects the seriousness of his crimes.”
Kaul pleaded guilty in February 2025 to one count of conspiracy to commit wire fraud and is awaiting sentencing, according to prosecutors.
The case was investigated by the FBI. Assistant U.S. Attorneys Matthew D. Forbes and Rebecca E. Kline prosecuted the case.
