Newport Beach Resident Pleads Guilty to Wire Fraud Scheme

Categories: California Breaking NewsCalifornia News

The federal courthouse where significant fraud cases are being prosecuted.

News Summary

Sayee Chaitanya Reddy Devagiri pleaded guilty to conspiracy to commit wire fraud in a federal court in San Jose, stemming from a fraud scheme against DoorDash that cost over $2.5 million. The investigation revealed that he manipulated customer accounts to place fake orders while working for the food delivery service. Devagiri is now the third defendant to be convicted in this case, with severe sentences possible as the court proceedings continue.

California – Sayee Chaitanya Reddy Devagiri, a 30-year-old resident of Newport Beach, pleaded guilty to conspiracy to commit wire fraud in a federal court located in San Jose. The guilty plea was officially entered on Tuesday, marking a significant development in an extensive fraud case involving DoorDash.

The fraud scheme, which aimed to steal more than $2.5 million from DoorDash, took place between 2020 and 2021 while Devagiri was employed as a driver for the food delivery service, which is headquartered in San Francisco. Devagiri’s actions involved manipulating customer accounts to place high-priced orders, an act that contributed to the nationwide issue of fraud in the gig economy.

Devagiri was indicted by a federal grand jury in August 2024, alongside three co-defendants: Manaswi Mandadapu and Tyler Thomas Bottenhorn. As part of the ongoing investigation, Devagiri is now the third defendant to be convicted in connection with this case, underlining the serious nature of their collective actions.

The fraudulent scheme worked as follows: Devagiri leveraged an employee’s credentials to gain unauthorized access to DoorDash’s software. Once inside, he manually reassigned orders to accounts that he controlled. To trigger payments for deliveries that never took place, he marked these orders as completed in the DoorDash system. Devagiri took the deceit a step further by reporting fake deliveries, subsequently switching the order status back to “in process” to initiate the scam repeatedly. This fraudulent cycle could be executed in less than five minutes per order, with Devagiri managing to replicate this process hundreds of times for various orders.

The total financial impact of these deceptive practices resulted in over $2.5 million being fraudulently paid out by DoorDash, creating not only a significant loss for the company but also raising concerns regarding security and the integrity of gig economy platforms.

Devagiri was arrested on October 4, 2024, in a coordinated effort with law enforcement that targeted the individuals involved in this fraudulent activity. His co-defendant, Mandadapu, faced similar charges and pleaded guilty to conspiracy to commit wire fraud on May 6, 2025. Meanwhile, Bottenhorn, who had a brief employment history with DoorDash in 2020, entered a guilty plea in November 2023 to a related but distinct charge.

With his guilty plea, Devagiri now faces a severe sentence if found guilty. The court could impose a maximum of 20 years in prison, accompanied by a potential fine reaching up to $250,000. These repercussions reflect the seriousness of the fraud committed, not only for the individuals involved but for the wider implications concerning trust in delivery services and consumer protection.

The judicial proceedings are set to continue, with Devagiri’s next court status hearing slated for September 16, 2025. This case highlights ongoing challenges that major service companies face in securing their platforms against fraudulent activity and the importance of robust monitoring and investigative practices to protect against such scams in the future.