It sounds like a plot from a low-budget heist movie. A delivery driver finds a loophole in an app, calls up some friends, and suddenly they’re sitting on millions of dollars. But for Sayee Chaitanya Reddy Devagiri, this wasn't a screenplay. It was reality, at least until the Department of Justice stepped in.
The story of how one man and his associates allegedly siphoned over $2.5 million from DoorDash is a wild look at the intersection of the "gig economy" and sophisticated wire fraud. It’s also a cautionary tale about how digital systems we trust every day can be manipulated if someone is motivated enough. Honestly, the sheer scale of the operation is what catches most people off guard. We aren't talking about a few free pizzas here; we’re talking about a multi-million dollar conspiracy that triggered a federal investigation.
The DoorDash Loophole That Started It All
So, how does a delivery driver end up at the center of a $2.5 million fraud case?
Basically, it comes down to exploiting the way delivery platforms handle payments and cancellations. Between November 2020 and February 2021, Sayee Chaitanya Reddy Devagiri and his co-conspirators—including Manaswi Mandadapu, Matheus Duarte, and Hari Vamsi Anne—figured out a way to game the system.
They weren't just driving around delivering bags of Thai food. Instead, they were reportedly creating a massive network of fraudulent accounts.
The "Ghost Order" Strategy
The group used a two-pronged attack:
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- Fake Customer Accounts: They created accounts to place high-value orders from restaurants, mostly in the Northern District of California (places like Santa Clara County).
- Fake Driver Accounts: They simultaneously operated driver accounts to "accept" these orders.
The magic trick happened when the orders were placed. By manipulating the app's payment processing, they managed to get DoorDash to pay out for deliveries that never actually took place. In some instances, they exploited a glitch where they could place an order, have the "driver" (who was part of the group) claim to have picked it up, and then cancel or manipulate the transaction so that the company paid the driver even though the customer (also them) wasn't actually charged.
Imagine doing that once. Now imagine doing it thousands of times in just a few months. That’s how you hit the $2.5 million mark.
Why Sayee Chaitanya Reddy Devagiri Pleaded Guilty
By May 2025, the game was officially over. Devagiri, a 30-year-old resident of Newport Beach at the time of his arrest, stood in a federal court in San Jose and pleaded guilty to conspiracy to commit wire fraud.
It’s interesting because the case wasn't just about one guy. The U.S. Attorney’s Office for the Northern District of California was very specific about the collaborative nature of the crime. This was a structured conspiracy. They weren't just "kinda" breaking the rules; they were systematically attacking the financial integrity of a major tech corporation.
When you're facing federal charges, the stakes are massive. Under 18 U.S.C. § 1349, the conspiracy charge carries a maximum statutory penalty of 20 years in prison. You've also got the $250,000 fine to worry about, plus the very real possibility of being ordered to pay back every cent of that $2.5 million in restitution.
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The Logistics of the Takedown
The FBI and the IRS Criminal Investigation team were the ones who finally pulled the thread that unraveled the whole thing. It wasn't an overnight bust. The unsealed indictment from October 2024 showed that investigators had been tracking the digital footprint of these "ghost orders" for quite some time.
One thing people often forget is that every "anonymous" account on an app like DoorDash leaves a trail. IP addresses, device IDs, bank account routing numbers for payouts—it all links back eventually.
- The Arrests: Devagiri and Mandadapu were arrested in Newport Beach.
- The Guilty Pleas: Devagiri was the third person in the group to admit guilt, following Tyler Thomas Bottenhorn and Manaswi Mandadapu.
- The Tech Response: DoorDash eventually had to tighten its fraud detection algorithms. They called the scheme "extremely rare," which is corporate-speak for "this was a huge mess that we didn't see coming."
What Most People Get Wrong About Gig Economy Fraud
There is a common misconception that these kinds of "glitches" are victimless crimes. People think, "Oh, it's a multi-billion dollar company, they won't miss a few million."
But the reality is that these schemes often lead to stricter rules for the honest drivers who are just trying to make a living. When a platform loses $2.5 million, they don't just eat the cost. They implement more rigid verification steps, lower their pay scales to recoup losses, or increase fees for customers.
Sayee Chaitanya Reddy Devagiri didn't just scam a company; he essentially stress-tested the entire infrastructure of gig work in California, and not in a good way. The complexity of the case shows that while these apps are convenient, they are also incredibly vulnerable to those who understand the backend logic better than the average user.
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Looking Ahead: The Aftermath for Devagiri
As of mid-2025, Devagiri was awaiting his final sentencing. While 20 years is the maximum, the actual time served usually depends on federal sentencing guidelines, which look at things like the total amount stolen and the person's prior criminal history (or lack thereof).
Regardless of the final number of months or years, the professional and personal life of Sayee Chaitanya Reddy Devagiri has been permanently altered. Going from a delivery driver to a headline-making federal convict is a pivot nobody wants on their resume.
Key Takeaways from the Case
If you're following this story, there are a few things to keep in mind regarding how the legal system and tech companies are moving forward.
- Digital Footprints are Permanent: You might think you're hiding behind a fake name or a burner phone, but federal investigators have tools that make those barriers look like tissue paper.
- The Gig Economy is a Target: As more of our economy moves to app-based services, we’re going to see more people trying to find "loopholes." This case is a landmark for how the government prosecutes these modern types of wire fraud.
- Restitution is Real: Even if the money is spent, the court can garnish future wages and seize assets for decades to ensure the victim (in this case, DoorDash) is paid back.
The story of Sayee Chaitanya Reddy Devagiri serves as a reminder that in the world of high-tech "hustles," the house always wins eventually—especially when the house is the federal government.
For those looking to understand the legal landscape of gig economy fraud, monitoring the final sentencing reports for the remaining co-defendants in the Northern District of California is the best way to see how the justice system calculates the cost of a multi-million dollar "glitch." You can track these updates through the U.S. Department of Justice's official press releases or the PACER (Public Access to Court Electronic Records) system for detailed court filings.