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A Scheme That Multiplied Single Orders Hundreds of Times (Image Credits: Unsplash)
Northern California – Federal authorities dismantled a tech-savvy fraud operation that exploited DoorDash’s payment system to siphon more than $2.5 million through fictitious deliveries.[1][2]
A Scheme That Multiplied Single Orders Hundreds of Times
Prosecutors described the plot as a multi-layered assault on DoorDash’s platform. Between November 2020 and February 2021, the conspirators created numerous fake customer accounts and bogus driver profiles.[1]
Insider access allowed them to assign these phantom orders to fraudulent drivers. They then manipulated the system to record individual orders as completed repeatedly – sometimes hundreds of times – triggering payouts for services never rendered. The ruse netted over $2.5 million before investigators caught on.
Court records revealed the group’s coordination relied on exploiting internal tools, a tactic that highlighted vulnerabilities in gig economy platforms.
Court Delivers Varied Prison Terms and Hefty Restitution
U.S. District Judge Lucy H. Koh imposed sentences ranging from time served to 25 months in prison. Each defendant also faced three years of supervised release and massive restitution orders.
| Name | Sentence | Restitution |
|---|---|---|
| Matheus Duarte | 25 months | $2,590,195 |
| Hari Vamsi Anne | 22 months | $2,590,195 |
| Sayee Chaitanya Reddy Devagiri | 21 months | $2,590,195 |
| Manaswi Mandadapu | 12 months | $2,590,195 |
| Tyler Thomas Bottenhorn | Time served | $2,127,216 |
Duarte, a Brazilian national from Hayward, and the others must surrender to authorities in March 2026. Forfeitures included hundreds of thousands in seized assets.[2]
Defendants from California and Beyond
The convicted individuals hailed from diverse locations, underscoring the scheme’s reach. Duarte resided in Hayward, while Devagiri and Mandadapu lived in Newport Beach and Irvine, respectively.
- Bottenhorn called Dixon, California, home.
- Anne operated from Cypress, Texas.
All five pleaded guilty to conspiracy to commit wire fraud. Their backgrounds in tech appeared to aid the sophisticated manipulation of DoorDash’s systems.
Lessons for Gig Platforms Amid Rising Fraud
The case exposed risks in rapid-growth delivery services. Fraudsters targeted payout mechanisms, a common weak point in app-based economies.
Authorities emphasized the role of digital forensics in unraveling the plot. The U.S. Attorney’s Office for the Northern District of California led the probe, with sentencing finalized this week.
Key Takeaways:
- The fraud exploited insider access for fake multi-fulfillments.
- Total losses exceeded $2.5 million over four months.
- Combined sentences and restitution aim to deter similar schemes.
This DoorDash case serves as a stark reminder of how digital ingenuity can turn criminal, but justice systems are adapting. Gig workers and companies alike must stay vigilant against such deceptions. What do you think about these evolving fraud tactics? Tell us in the comments.
Besides founding Festivaltopia, Luca is the co founder of trib, an art and fashion collectiv you find on several regional events and online. Also he is part of the management board at HORiZONTE, a group travel provider in Germany.
