Two Former Executives Sentenced For Committing Years-Long Fraud Against Their Employer
Former OrthoNet executives Shawn Rains and Joseph Maharaj were sentenced to 12 years and 90 months in prison, respectively, for orchestrating a years-long fraud scheme that stole over $4 million from
Former OrthoNet executives Shawn Rains and Joseph Maharaj were sentenced to 12 years and 90 months in prison, respectively, for orchestrating a years-long fraud scheme that stole over $4 million from their employer. They conspired with others to create fake vendors, submit fraudulent invoices for non-existent services, and launder the proceeds by converting payments to cash and dividing them among themselves. Rains was convicted at trial of mail fraud conspiracy, mail fraud, and money laundering conspiracy, while Maharaj pleaded guilty to mail fraud conspiracy. Rains was ordered to forfeit over $4.04 million and pay $4.64 million in restitution; Maharaj was ordered to forfeit and pay $4.03 million in restitution. The case was investigated by the FBI and prosecuted by the U.S. Attorney’s Office for the Southern District of New York.
Former OrthoNet executives Shawn Rains and Joseph Maharaj were sentenced to 12 years and 90 months in prison, respectively, for orchestrating a years-long fraud scheme that stole over $4 million from their employer. They conspired with others to create fake vendors, submit fraudulent invoices for non-existent services, and launder the proceeds by converting payments to cash and dividing them among themselves. Rains was convicted at trial of mail fraud conspiracy, mail fraud, and money laundering conspiracy, while Maharaj pleaded guilty to mail fraud conspiracy. Rains was ordered to forfeit over $4.04 million and pay $4.64 million in restitution; Maharaj was ordered to forfeit and pay $4.03 million in restitution. The case was investigated by the FBI and prosecuted by the U.S. Attorney’s Office for the Southern District of New York. Former OrthoNet executives Shawn Rains and Joseph Maharaj were sentenced to 12 years and 90 months in prison, respectively, for orchestrating a years-long fraud scheme that stole over $4 million from their employer. They conspired with others to create fake vendors, submit fraudulent invoices for non-existent services, and launder the proceeds by converting payments to cash and dividing them among themselves. Rains was convicted at trial on charges of mail fraud conspiracy, mail fraud, and money laundering conspiracy, while Maharaj pleaded guilty to mail fraud conspiracy. Both were ordered to forfeit over $4 million each and pay restitution totaling nearly $8.7 million combined. The case was investigated by the FBI and prosecuted by the U.S. Attorney’s Office for the Southern District of New York.
Extracted insights
- $4.64M $4,636,150 $1M–$10M
- $4.04M $4,043,798 $1M–$10M
- $4.03M $4,034,411 $1M–$10M
- $4.00M $4 million $1M–$10M
- person damian williams
- person fraud scheme
- person joseph maharaj
- scheme_term mail fraud conspiracy, mail fraud, and money laundering conspiracy
- scheme_term one count of mail fraud conspiracy
- person shawn rains
- Shawn Rains sentenced to 12 years in prison
- Joseph Maharaj sentenced to 90 months in prison
- Shawn Rains convicted of mail fraud conspiracy, mail fraud, and money laundering conspiracy
- Joseph Maharaj pled guilty to one count of mail fraud conspiracy
- Shawn Rains and Joseph Maharaj stole from OrthoNet
- Shawn Rains and Joseph Maharaj defrauded OrthoNet of over $4 million
- Fraud scheme occurred between 2009 and 2017
- OrthoNet is located in White Plains, New York
- Shawn Rains ordered to forfeit $4,043,798.69
- Shawn Rains ordered to pay restitution $4,636,150.69
- Joseph Maharaj ordered to forfeit $4,034,411.19
- Joseph Maharaj ordered to pay restitution $4,034,411.19
- Damian Williams announced sentencing of Shawn Rains and Joseph Maharaj
- Judge Nelson S. Román sentenced Shawn Rains and Joseph Maharaj
Press Release Two Former Executives Sentenced For Committing Years-Long Fraud Against Their Employer Tuesday, April 30, 2024 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York 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. * * * 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. Contact Nicholas Biase, Lauren Scarff, Shelby Wratchford (212) 637-2600 Updated April 30, 2024 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 24-154
Press Release Two Former Executives Sentenced For Committing Years-Long Fraud Against Their Employer Tuesday, April 30, 2024 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York 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. * * * 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. Contact Nicholas Biase, Lauren Scarff, Shelby Wratchford (212) 637-2600 Updated April 30, 2024 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 24-154