Newport Beach DoorDash driver pleads guilty to stealing $2.5 million in deliveries scam
3 minute readPublished: Wednesday, May 14, 2025 at 6:25 pm
DoorDash Driver Admits to $2.5 Million Delivery Scam in Newport Beach
A former DoorDash driver from Newport Beach, California, has pleaded guilty to a massive fraud scheme that bilked the food delivery giant out of over $2.5 million. Sayee Chaitanya Reddy Devagiri, 30, admitted in a San Jose federal court to conspiring with others to steal from DoorDash through a sophisticated system of fake deliveries.
According to federal prosecutors, Devagiri and his accomplices exploited vulnerabilities in DoorDash's system between 2020 and 2021. The scheme involved placing high-value orders using customer accounts. Devagiri then used an employee's credentials to access DoorDash software, reassigning these orders to driver accounts he and his co-conspirators controlled.
The fraudulent drivers would falsely report the orders as delivered, even though no food was ever actually delivered. Devagiri then manipulated the system to pay the fraudulent driver accounts for these nonexistent deliveries. He would then reset the orders, changing their status back to "in process" and reassigning them, repeating the cycle.
Devagiri is the third person to be convicted in connection with this elaborate fraud. Two other co-defendants previously pleaded guilty to similar charges. Devagiri now faces a potential maximum sentence of 20 years in prison and a $250,000 fine. He is scheduled to be sentenced on September 16, 2025.
BNN's Perspective: This case highlights the ongoing challenges faced by tech companies in combating fraud. While the scale of this scam is significant, it also underscores the importance of robust security measures and internal controls. It's a reminder that even seemingly secure systems can be vulnerable, and companies must remain vigilant in protecting themselves and their customers from such criminal activity. The severity of the potential sentence reflects the seriousness with which the courts view this type of white-collar crime.
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