Two Former Executives Sentenced For Committing Years-Long Fraud Against Their Employer

Damian Williams, the United States Attorney for the Southern District of New York, announced today that SHAWN RAINS and JOSEPH MAHARAJ were sentenced by U.S. District Judge Nelson S. Román to 12 years and 90 months in prison, respectively, for their participation in a scheme to steal millions of dollars from a White Plains company where they were formerly high-ranking executives.  RAINS was previously convicted, following a two-week jury trial, of mail fraud conspiracy, mail fraud, and money laundering conspiracy.  MAHARAJ previously pled guilty to one count of mail fraud conspiracy.

U.S. Attorney Damian Williams said: “Shawn Rains and Joseph Maharaj, former executives at a White Plains healthcare consulting company, betrayed the trust of their employer by stealing millions of dollars.  Along with co-conspirators, Rains and Maharaj used sham companies to submit fake invoices and trick their employer into paying for work that never happened, then laundered the proceeds.  Prosecuting cases like this is crucial to maintaining trust in business and protecting the integrity of financial systems upon which countless individuals and institutions rely.”

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:

RAINS and MAHARJ were executives at OrthoNet, a healthcare claims processing company based in White Plains, New York.  Between approximately 2009 and 2017, RAINS and MAHARAJ designed and executed a scheme to defraud OrthoNet of over $4 million and to launder the fraud proceeds.  RAINS and MAHARAJ conspired with others to create fake vendors that purported to do work on behalf of OrthoNet.  RAINS, MAHARAJ, and their co-conspirators then signed invoices approving payment for the fake work, and OrthoNet sent payments to the fake vendors.  RAINS, MAHARAJ, and their co-conspirators then converted the money to cash to hide the source of the fraud proceeds and split it up amongst themselves.

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In addition to the prison sentence, RAINS, 57, of Le Bouscat, France, was ordered to forfeit $4,043,798.69 and pay restitution in the amount of $4,636,150.69.  MAHARAJ, 42, of Goldens Bridge, New York, was ordered to forfeit $4,034,411.19 and pay restitution in the amount of $4,034,411.19.

Mr. Williams thanked the Federal Bureau of Investigation for their outstanding work on the investigation.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Stephanie Simon, Benjamin Klein, Jim Ligtenberg, and Jamie Bagliebter are in charge of the prosecution, with the assistance of Paralegal Specialist Shannon Becker.