Westchester Exec Guilty In $4M Mail Fraud, Money Laundering Scheme

GOLDENS BRIDGE, NY — Two former executives, a Goldens Bridge man and a former Ridgefield, Connecticut man, have been convicted for mail fraud and money laundering charges, in a conspiracy to steal over $4 million from a White Plains healthcare claims processing company.

Damian Williams, the U.S. Attorney for the Southern District of New York, announced that on Friday, a federal jury found 57-year-old Shawn Rains, of Le Bouscat, France (formerly of Ridgefield) guilty of three counts — conspiracy to commit mail fraud, mail fraud, and conspiracy to commit money laundering — in connection with a scheme to steal more than $4 million from a Westchester company where he was formerly a high-ranking executive. He was found guilty after a two-week trial, with his sentencing scheduled for January 31.

Earlier this year, on March 22, 42-year-old Joseph Maharaj, of Goldens Bridge, pleaded guilty to conspiracy to commit mail fraud. He is scheduled to be sentenced on December 4.

"Shawn Rains, a former executive at a White Plains healthcare claims processing company, betrayed the trust of his employer by stealing millions of dollars," Williams said. "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 court documents, Rains and Maharaj were executives at OrthoNet, a White Plains-based healthcare claims processing company. Between 2009 and 2017, Rains and Maharaj, designed and executed a scheme to defraud the company of more than $4 million and to launder the fraudulent proceeds. Rains conspired with Maharaj and others to create fake vendors that claimed 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.

Rains was convicted of one count of conspiracy to commit mail fraud, which carries a maximum term of 20 years in prison; one count of mail fraud, which carries a maximum term of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison.

Maharaj was convicted of one count of conspiracy to commit mail fraud, which carries a maximum term of 20 years in prison.

Williams thanked the FBI for their work on the investigation.