Former Executive Convicted At Trial Of Mail Fraud And Money Laundering

 

Damian Williams, the United States Attorney for the Southern District of New York, announced that on October 20, 2023, a federal jury found SHAWN RAINS guilty of three counts — conspiracy to commit mail fraud, mail fraud, and conspiracy to commit money laundering — in connection with a scheme to steal over $4 million from a White Plains company where he was formerly a high-ranking executive.  The defendant was found guilty following a two-week trial before U.S. District Judge Nelson S. Román.  Sentencing is scheduled for January 31, 2024, before Judge Román. 

U.S. Attorney Damian Williams said: “Shawn Rains, a former executive at a White Plains healthcare claims processing company, betrayed the trust of his employer by stealing millions of dollars.  Rains was the ringleader of a scheme in which he and his co-conspirators created fake vendors, submitted fake invoices, charged their company for work that was never done, and then disguised the proceeds of the fraud.  A federal jury has now convicted Rains of fraud and money laundering.  This verdict should remind those in positions of trust that if you engage in fraud, we will catch you and hold you accountable.” 

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:

SHAWN RAINS was an executive at OrthoNet, a healthcare claims processing company based in White Plains, New York.  Between approximately 2009 and 2017, RAINS and JOSEPH MAHARAJ, another OrthoNet executive, designed and executed a scheme to defraud OrthoNet of over $4 million and to launder the fraud proceeds.  RAINS conspired with MAHARAJ and 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.

On March 22, 2023, MAHARAJ pled guilty to conspiracy to commit mail fraud.  He is scheduled to be sentenced before Judge Román on December 4, 2023.

RAINS, 57, of Le Bouscat, France, was convicted of (i) one count of conspiracy to commit mail fraud, which carries a maximum term of 20 years in prison; (ii) one count of mail fraud, which carries a maximum term of 20 years in prison; and (iii) one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison. 

MAHARAJ, 42, of Goldens Bridge, New York, was convicted of one count of conspiracy to commit mail fraud, which carries a maximum term of 20 years in prison.

The statutory maximum sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge Román. 

Mr. Williams thanked the Federal Bureau of Investigation for their outstanding work on the investigation.