Amtrak has recently found itself embroiled in a significant $12 million fraud scheme involving 119 workers, with more than half of them still on the payroll, as revealed by an internal audit. These employees exploited Amtrak’s health plans, engaging in kickback schemes and filing fraudulent claims after accepting bribes from fake doctors.
“The sheer number of employees involved in this scheme raises serious ethical concerns and points to a troubling culture within the Northeast region where such criminal behavior appears somewhat accepted,” stated the watchdog.
Particularly, some of these individuals, mainly based in the DC area and hailing from New York, provided children’s insurance information over the span of a few years, from 2019 to 2022. It’s alarming that 61 of these individuals are still working in taxpayer-funded roles, according to the Office of Inspector General (OIG).
An Amtrak representative mentioned that the company is responding swiftly, emphasizing increased monitoring and employee education to prevent future occurrences of such dishonest practices.
Currently, around 12 Amtrak employees face criminal charges, with seven having pleaded guilty and awaiting sentencing. Additionally, 28 employees have either been dismissed or resigned during the investigation, while another 30 left for various reasons.
The OIG noted that an investigation began when agents noticed suspicious billing patterns involving several New York healthcare providers with numerous Amtrak employees listed as patients.
In June 2021, an undercover investigator met with Panson Figueroa, a Long Island City acupuncturist who posed as an Amtrak employee. During the meeting, she allegedly signed multiple documents for acupuncture and physical therapy treatments. It was discovered later that Figueroa submitted false claims to Amtrak’s healthcare providers.
The undercover agent reportedly returned to her office with $1,000 cash as part of the scheme. Two main figures in this operation, Devon Burt from Pennsylvania and Halmgeltzer from New Jersey, were reportedly responsible for recruiting Amtrak employees and made threats against healthcare providers unless they received their share of the profits.
Both pleaded guilty in June 2023 to healthcare fraud conspiracy and making threats. Burt agreed to repay nearly $1 million, while Gelzer is set to repay approximately $1.66 million.
Figueroa has also pleaded guilty to fraud and was given three years of supervised release, along with a restitution order exceeding $9 million. Other individuals involved, such as physician Muhammad Mirza and podiatrist Michael Dennicola, have faced legal repercussions for their roles in the scheme, with Mirza receiving a 26-month prison sentence and Dennicola awaiting sentencing.
Additionally, a medical biller, Reginache, associated with Figueroa, has pleaded guilty to similar charges and is awaiting her sentence, while several others also face repercussions for their involvement.
