A former delivery driver has pleaded guilty to conspiring with several others to steal over $2.5 million from DoorDash, a San Francisco-based food delivery company, federal prosecutors said.
Sayee Chaitanya Reddy Devagiri, 30, of Newport Beach, California, pleaded guilty on May 13 to one count of conspiracy to commit wire fraud, according to the U.S. Attorney’s Office for the Northern District of California. Prosecutors said Devagiri admitted to working with three others and a former employee of DoorDash in a fraud scheme that targeted the company between 2020 and 2021.
In the scheme, the group caused DoorDash to pay for deliveries that never occurred, according to prosecutors. Prosecutors said the scheme resulted in more than $2.5 million in fraudulent payments.
Devagiri was arrested and indicted alongside Manaswi Mandadapu, 29; Matheus Duarte, 29; and Hari Vamsi Anne, 30, in October 2024, according to prosecutors. All four were charged with a single count of conspiracy to commit wire fraud.
Mandadapu pleaded guilty to the charge on May 6, prosecutors said. Duarte and Anne previously pleaded not guilty and are scheduled to appear in court on July 22, The Los Angeles Times reported.
The former DoorDash employee involved in the scheme, Tyler Thomas Bottenhorn, was charged in a separate indictment in September 2022 and pleaded guilty to conspiracy to commit wire fraud in November 2023, according to prosecutors.
Devagiri is expected to appear in court for a status hearing on September 16, prosecutors said. He faces a maximum statutory penalty of 20 years in prison and a fine of $250,000.
According to an indictment unsealed in October 2024, the group worked together between November 2020 to February 2021. During that period, Devagiri, along with Mandadapu, Duarte, and Anne, created multiple fraudulent customer and driver accounts with DoorDash, the indictment states.
The group used the fraudulent customer accounts to place “high value” orders from restaurants across Northern California, including Santa Clara County, according to the indictment. They then utilized an employee’s credentials to access DoorDash’s computer systems and software.
The indictment further alleged that the group used the computer systems to manually reassign DoorDash orders placed by their fraudulent customer accounts to their driver accounts. Prosecutors said Devagiri then would report the orders had been delivered on the driver accounts when they had not and manipulated the software to prompt DoorDash to pay the driver accounts for the deliveries that never occurred.
Devagiri also used the DoorDash software to change the orders from “complete” statuses to “in process” statuses and reassigned the orders to driver accounts that the group controlled, according to the indictment. Prosecutors said Devagiri repeated this process, which took less than five minutes, hundreds of times for many orders. (USA Today)