Amtrak hit with its largest employee fraud scheme

Amtrak Scandal Uncovered: $12 Million Scheme Involving 119 Workers

An internal watchdog has discovered that Amtrak fell victim to a massive $12 million scheme involving 119 workers. Shockingly, more than half of these employees are still on the company’s payroll, despite their involvement in the scam.

The workers engaged in a kickback scheme that defrauded Amtrak’s health plan. They accepted bribes from corrupt doctors who then submitted fake claims. Some employees even resorted to extortion tactics to secure their share of the illicit funds, as revealed in a report released by the company’s Office of the Inspector General.

Inspector General Kevin H. Winters expressed concern over the unethical behavior exhibited by the employees and the normalization of criminal activities within the Northeast region workforce. Some employees went as far as providing their children’s insurance information to further the fraudulent scheme, which took place between 2019 and 2022.

Despite the findings, 61 of the individuals involved in the scam continue to work for Amtrak. The company has pledged to take swift action against all fraudsters and has implemented increased oversight and employee education to prevent similar incidents in the future.

Around a dozen Amtrak employees are facing criminal charges, with seven already pleading guilty and awaiting sentencing. Additionally, 28 employees retired or resigned due to the investigation, while another 30 left the company for unrelated reasons, according to the OIG.

Investigation and Legal Action

The investigation into the fraudulent scheme was initiated after an agent noticed irregular billing patterns. This led to the discovery of three New York healthcare providers with questionable billings and a high number of Amtrak employees as patients.

An undercover agent posed as an Amtrak employee and uncovered the fraudulent activities of Punson Figueroa, an acupuncturist from Long Island City. Figueroa coerced the agent into signing fake treatment papers, which were then submitted as fraudulent claims to Amtrak’s healthcare provider.

Ringleaders Devon Burt and Hallum Gelzer were responsible for recruiting Amtrak employees into the scheme. They even resorted to threats to ensure they received their share of the illicit profits. Both individuals pleaded guilty to conspiracy charges and are required to pay back substantial amounts as part of their plea agreements.

Other individuals, including Muhammed Mirza, Michael DeNicola, and Regina Choi, have also faced legal consequences for their involvement in the scheme. Mirza was sentenced to prison, while DeNicola awaits sentencing for various charges. Choi admitted to submitting fraudulent claims and paying kickbacks and is awaiting sentencing as well.

Overall, a total of twelve employees have faced criminal charges for their role in the multi-million dollar fraud, highlighting the severity of the scam that plagued Amtrak.