A federal jury has convicted Shawn Rains, a former executive with the White Plains-based OrthoNet, on 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 his company.
OrthoNet is a health care claims processing company. According to the charges brought against him, Rains conspired with Joseph Maharaj, another OrthoNet executive, to create fake vendors that purported to do work on behalf of OrthoNet. The duo and their co-conspirators then signed invoices approving payment for the fake work, and OrthoNet sent payments to the fake vendors – which the scammers converted to cash and split among themselves.
Maharaj pled guilty to conspiracy to commit mail fraud in March and is scheduled to be sentenced on Dec. 4. Rains, who faces a maximum prison term of 20 years for each of the three counts on which he was convicted, faces sentencing on Jan. 31, 2024.
“This verdict should remind those in positions of trust that if you engage in fraud, we will catch you and hold you accountable,” said U.S. Attorney Damian Williams in announcing the convictions.
