Former White Plains Medical Claims Execs Sentenced For Fraud

WHITE PLAINS, NY — Two men were sentenced for stealing millions from a White Plains company while they were high-ranking executives.

Damian Williams, the United States Attorney for the Southern District of New York, announced Tuesday that Shawn Rains and Joseph Maharaj will be going to prison for 12 years and 90 months, respectively, after being convicted of mail fraud conspiracy.

Rains, 57, of Le Bouscat, France, was also convicted during a two-week jury trial of mail fraud and money laundering conspiracy. He was ordered to forfeit more than $4 million and pay restitution in the amount of more than $4.6 million.

Maharaj, 42, of Goldens Bridge, pleaded guilty to mail fraud conspiracy. He was also ordered to forfeit more than $4 million and pay the same amount in restitution.

Rains and Maharaj were executives at OrthoNet, a health care claims processing company based in White Plains, prosecutors said.

Between 2009 and 2017, they designed and executed a scheme to defraud OrthoNet of more than $4 million and to launder the fraud proceeds. They conspired with others to create fake vendors that purported to do work on behalf of the company.

Rains, Maharaj and their co-conspirators then signed invoices approving payment for the fake work, and OrthoNet sent payments to the fake vendors. They then converted the money to cash to hide the source of the fraud proceeds and split it up among themselves.