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The two worked at OrthoNet, a healthcare claims processing company based in White Plains.
Shawn Rains, age 57, of Le Bouscat, France, who was previously convicted of mail fraud conspiracy, mail fraud, and money laundering conspiracy after a two-week trial, was sentenced to 12 years in prison.
Northern Westchester resident Joseph Maharaj, age 42, of Goldens Bridge, had pleaded guilty to mail fraud conspiracy and was sentenced to seven-and-a-half years in prison.
They were also ordered to pay substantial amounts in forfeiture and restitution.
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
Between 2009 and 2017, Rains and Maharaj devised and executed a plan to cheat OrthoNet of more than $4 million and launder the fraud money.
The two collaborated with others to create bogus vendors who pretended to work for OrthoNet. They authorized payments for the fake work by signing invoices, and OrthoNet transferred funds to the fake vendors.
Afterward, the two and their associates converted the money into cash to conceal the source of the fraudulent proceeds and split it among themselves.
In addition to the prison sentence, Rains was ordered to forfeit $4,043,798.69 and pay restitution of $4,636,150.69.
Maharaj was ordered to forfeit $4,034,411.19 and pay restitution in the amount of $4,034,411.19.
"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," Damian Williams, the US Attorney for the Southern District of New York, said in a statement after sentencing. "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.
"Prosecuting cases like this is crucial to maintaining trust in business and protecting the integrity of financial systems upon which countless individuals and institutions rely.”
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