Federal prosecutors stated that a former food delivery driver admitted guilt to conspiring with accomplices to defraud DoorDash of over $2.5 million by inducing the company to reimburse nonexistent deliveries.

Sayee Chaitanya Reddy Devagiri entered a guilty plea on Tuesday in San Jose's federal court to a single count of conspiracy to commit wire fraud, as disclosed by the U.S. Attorney’s Office.

Devagiri, 30, residing in Newport Beach, California, confessed to conspiring with three accomplices throughout 2020 and 2021 to perpetrate a fraud against the San Francisco-based delivery firm, according to federal prosecutors.

According to prosecutors, Devagiri exploited customer accounts to initiate substantial orders, subsequently misusing an employee's credentials to infiltrate DoorDash's software. He then purportedly reassigned these orders to driver accounts under his and his accomplices' control. Officials allege that Devagiri orchestrated the fraudulent driver accounts to falsely confirm deliveries, thereby manipulating DoorDash's systems into disbursing payments for services never rendered.

Prosecutors alleged that Devagiri exploited the DoorDash system by altering completed deliveries to an "in process" state and subsequently reassigning them to driver accounts under his and his associates' control, thereby initiating a fraudulent cycle.

The disgraced ex-employee implicated in the fraud case entered a guilty plea to conspiracy to commit wire fraud in November 2023, confessing to his participation in the elaborate scheme, according to prosecutors.

Devagiri, the third defendant found culpable in this conspiracy, now faces a potential sentence of up to 20 years imprisonment alongside a $250,000 fine and is slated to reappear in court on September 16th.