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DoorDash Fraud Scheme Leads to Guilty Plea in California

Illustrative representation of fraud prevention in online food delivery systems.

News Summary

Sayee Chaitanya Reddy Devagiri has pleaded guilty to conspiracy to commit wire fraud in a scheme that defrauded DoorDash of over $2.5 million. Collaborating with a former DoorDash employee and co-defendants, Devagiri accessed the company’s systems unlawfully to create false accounts and approve non-existent food deliveries. The fraudulent activities took place over a few months and resulted in significant financial loss for DoorDash. Devagiri faces a maximum of 20 years in prison and a fine of $250,000 as legal proceedings continue.

Newport Beach, California – Sayee Chaitanya Reddy Devagiri, a 30-year-old resident, has pleaded guilty to conspiracy to commit wire fraud in a scheme that defrauded DoorDash of more than $2.5 million. The fraudulent activities took place between November 2020 and February 2021, involving multiple co-conspirators, including a former DoorDash employee.

Devagiri, once a delivery driver for DoorDash, collaborated with three co-defendants and a former employee to gain unlawful access to the company’s computer systems. This access was achieved by using stolen credentials obtained from the ex-employee, allowing the group to manipulate DoorDash’s platform to commit their fraud.

As part of their operations, the conspirators created fictitious customer and driver accounts, which they used to place high-value orders. These orders were charged to legitimate customer accounts, yet they never involved actual deliveries. Instead, the fraudulent driver accounts reported these non-existent orders as “delivered,” triggering the release of payments from DoorDash for deliveries that never occurred.

The scheme was particularly cunning, allowing the group to alter the status of their bogus orders using the DoorDash software. They switched the order status from “delivered” to “in progress,” which permitted them to continuously receive payments on orders that were never fulfilled. Remarkably, the entire fraudulent operation could be executed in under five minutes, and it was carried out hundreds of times throughout the duration of the scheme.

Devagiri now faces a maximum penalty of 20 years in federal prison, along with a potentially hefty fine of up to $250,000. A court status hearing is scheduled for September 16, where the next steps in the legal process will be outlined.

One of Devagiri’s co-defendants, Manaswi Mandadapu, has also pleaded guilty to the same charges, having done so on May 6. In contrast, other co-defendants, Matheus Duarte and Hari Vamsi Anne, have entered not guilty pleas and are set to appear in court on July 22. Compounding the complexities of the case, Tyler Thomas Bottenhorn, the former DoorDash employee involved in the scheme, had already pleaded guilty to conspiracy to commit wire fraud back in November 2023.

While the public details surrounding the relationships between the conspirators are limited, it has been reported that the nature of their connections and how they came together to orchestrate this scheme remains unclear.

This case highlights significant vulnerabilities in online food delivery systems, raising questions about security measures and the need for enhanced protections against fraud. As the legal proceedings continue, further developments are expected regarding the involvement of each conspirator and the impact of their actions on DoorDash and its operations.