SAN JOSE, Calif. — A former DoorDash driver from Newport Beach has pleaded guilty to orchestrating a sophisticated fraud scheme that cost the company over $2.5 million, federal prosecutors announced this week.
Sayee Chaitanya Reddy Devagiri, 30, entered his guilty plea in a San Jose federal courtroom, admitting to his role in a conspiracy that exploited internal DoorDash systems between 2020 and 2021.
How the Scheme Worked
According to the U.S. Attorney’s Office for the Northern District of California, Devagiri conspired with others to manipulate DoorDash’s internal software while employed as a driver for the popular food delivery service, which is headquartered in San Francisco.
Devagiri and his co-conspirators gained access to employee-level credentials, which allowed them to place high-value food orders under customer accounts and then falsely mark those orders as delivered, even though no delivery was made.
The fraudulent transactions were carried out in just minutes and repeated hundreds of times, funneling money directly into driver accounts controlled by the group. Prosecutors say the stolen funds were quickly disbursed, making the scheme hard to detect in real-time.
Multiple Guilty Pleas
Devagiri is not the only person charged in connection with the scam. According to officials, several co-defendants from other California cities have also pleaded guilty for their roles in the conspiracy.
The case sheds light on potential vulnerabilities within app-based service platforms like DoorDash, where access to sensitive back-end systems can be exploited by individuals with inside knowledge.
A Massive Financial Hit for DoorDash
In total, the fraudulent scheme led to more than $2.5 million in losses for DoorDash. The company has not publicly commented on the case but is reportedly cooperating with investigators.
The scale and speed of the operation suggest a high level of coordination among those involved, using the company’s infrastructure against it for personal financial gain.
Next Steps in the Case
Devagiri is scheduled to appear in court again on September 16, where he may face sentencing. The charges he pleaded guilty to could result in significant prison time, depending on the court’s ruling and any plea agreements reached with federal prosecutors.
Prosecutors have not yet confirmed whether further charges or additional defendants are expected in connection with the scheme.
Broader Implications
The case underscores ongoing concerns about cybersecurity and internal system access in gig economy companies. As more businesses rely on contract workers and decentralized platforms, the risks of insider fraud and system exploitation continue to grow.
Federal authorities emphasized the importance of robust internal controls, noting that the use of stolen or unauthorized credentials remains one of the most common and costly threats facing digital service companies.
Conclusion
The guilty plea by Sayee Chaitanya Reddy Devagiri marks a major step in a wide-reaching investigation into internal fraud at DoorDash, one of the country’s leading delivery services. While multiple individuals have now admitted guilt, the damage inflicted on the company serves as a cautionary tale for other tech-driven firms.
More developments are expected as the case moves forward toward sentencing this fall.
Leave a Reply