NEW YORK, NY – In a shocking case of corporate betrayal, two former high-ranking executives have been sentenced to lengthy prison terms for their roles in a massive $8M white collar heist.
Shawn Rains, 57, a former executive at OrthoNet, a healthcare consulting company based in White Plains, New York, was sentenced to 12 years in prison for his participation in a scheme to steal millions of dollars from his former employer. Rains was convicted of mail fraud conspiracy, mail fraud, and money laundering conspiracy after a two-week jury trial.
Rains’ co-conspirator, Joseph Maharaj, 42, also a former executive at OrthoNet, was sentenced to 90 months in prison for his role in the scheme. Maharaj had previously pled guilty to one count of mail fraud conspiracy.
According to the indictment and evidence presented at trial, Rains and Maharaj, along with their co-conspirators, created fake vendors that purported to do work on behalf of OrthoNet. The pair then signed invoices approving payment for the fake work, and OrthoNet sent payments to the fake vendors. The money was then laundered and split amongst the conspirators.
U.S. Attorney Damian Williams praised the Federal Bureau of Investigation for their outstanding work on the investigation. “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,” Williams said. “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.”
In addition to their prison sentences, Rains was ordered to forfeit $4,043,798.69 and pay restitution in the amount of $4,636,150.69. Maharaj was ordered to forfeit $4,034,411.19 and pay restitution in the amount of $4,034,411.19.
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. The case sends a strong message to corporate executives who would seek to line their pockets with their employer’s money.
With the sentencing of Rains and Maharaj, the U.S. Attorney’s Office has sent a clear message that white collar crime will not be tolerated. The case is a reminder that corporate executives will be held accountable for their actions, and that the consequences of their crimes will be severe.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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