Shawn Rains, Mail Fraud Conspiracy, New York 2023

Related Federal Cases

Mark Thompson, Wire Fraud and Conspiracy, New York NY, 2023 · New York
James Pavlounis, Social Security Administration Fraud and Tax Evasi… · Texas
Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
Sark Wire Corporation, PPP Fraud, Albany NY, 2023 · New York
Sark Wire Corporation, PPP Loan Fraud, Albany NY, 2020 · New York

Table of Contents

Former Executives Sentenced for Stealing Millions from Employer

WHITE PLAINS, NY – Two former executives at a White Plains healthcare consulting company were sentenced to prison for their roles in a years-long scheme to steal millions of dollars from their employer.

Shawn Rains, 57, of Le Bouscat, France, was sentenced to 12 years in prison for his participation in the scheme. Rains was previously convicted of mail fraud conspiracy, mail fraud, and money laundering conspiracy after a two-week jury trial. He was also ordered to forfeit $4,043,798.69 and pay restitution in the amount of $4,636,150.69.

Joseph Maharaj, 42, of Goldens Bridge, New York, was sentenced to 90 months in prison for his role in the scheme. Maharaj previously pled guilty to one count of mail fraud conspiracy. He was also ordered to forfeit $4,034,411.19 and pay restitution in the amount of $4,034,411.19.

According to the indictment, Rains and Maharaj designed and executed a scheme to defraud their employer, OrthoNet, of over $4 million between 2009 and 2017. The pair 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. OrthoNet sent payments to the fake vendors, and Rains and Maharaj converted the money to cash to hide the source of the fraud proceeds and split it up amongst themselves.

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.’

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.