WHITE PLAINS, NEW YORK – In a shocking display of greed and betrayal, two former high-ranking executives at a White Plains healthcare consulting company have been sentenced to prison for stealing millions of dollars from their employer.
Shawn Rains, 57, and Joseph Maharaj, 42, 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 over $8.5 million from OrthoNet, a healthcare claims processing company based in White Plains, New York.
The scheme, which lasted from approximately 2009 to 2017, involved Rains and Maharaj designing and executing a plan to defraud OrthoNet of millions of dollars. They conspired with others to create fake vendors that purported to do work on behalf of OrthoNet, then signed invoices approving payment for the fake work, and OrthoNet sent payments to the fake vendors.
Rains and Maharaj then converted the money to cash to hide the source of the fraud proceeds and split it up amongst themselves. Rains was convicted of mail fraud conspiracy, mail fraud, and money laundering conspiracy following a two-week jury trial, while Maharaj pled guilty to one count of mail fraud conspiracy.
According to the indictment, statements made in public court proceedings and filings, and the evidence at trial, 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.
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.”
Rains was ordered to forfeit $4,043,798.69 and pay restitution in the amount of $4,636,150.69, while Maharaj 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.
Related Federal Cases
- Tax Cheat Partners Get Caught: Westchester Accountants Plead Guilty to $2.5M Tax Fraud Scheme · New York
- Mercedes Pays $150M for Emissions Fraud · New York
- NYC Co-Op Owners Get Lifeline Amidst Housing Crisis · New York
- Little Elm Mail Center Operator Admits $1M Wire Fraud · Texas
- Medina Mortgage Scheme Nets Five in $4.1M Fraud · Texas
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
