How Amtrak staff turned their well being advantages into an $11 million fraud scheme
Federal prosecutors say {that a} group of Amtrak staff conspired with corrupt well being care suppliers to defraud the corporate’s worker well being plan of greater than $11 million.
The scheme, which ran from January 2019 by way of June 2022, concerned staff permitting suppliers to make use of their private and insurance coverage info to submit false claims for therapies that had been by no means offered or had been medically pointless.
In return, the workers obtained 1000’s of {dollars} in money kickbacks.
Up to now, 5 Amtrak staff have pleaded responsible within the case.
A complete of ten individuals had been charged in a June 2024 indictment.
“The defendants admitted to colluding with corrupt well being care suppliers in a scheme to defraud Amtrak’s well being care plan for private monetary achieve,” U.S. Legal professional Alina Habba stated in a press release.
Kevin Frink, 53, of Willingboro, New Jersey, is the newest to plead responsible earlier than U.S. District Choose Madeline Cox Arleo in Newark.
He joins Michael Toal, 35, of Hazlet; David McBrien, 37, of Levittown, Pennsylvania; Damany Walker, 41, of Irvington; and David Lonergan, 65, of Rockaway Park, New York, who additionally admitted guilt to the identical cost.
Every defendant faces as much as 10 years in jail and a tremendous of $250,000, or twice the gross achieve or loss from the offense.
Sentencing is predicted later this 12 months.
David McBrien’s legal professional, Michael V. Calabro, described the case as a tragic flip for a person who had beforehand led a law-abiding and hardworking life.
“He was tempted by the lure of simple cash, and as is so usually the case, the simple means changed into the laborious means,” Calabro stated.
“What occurred right here is completely out of character for Mr. Toal. He made a smart move to finish this case and transfer on along with his life,” Toal’s legal professional, Michael Chazen stated in a press release.
Attorneys representing the opposite defendants who pleaded responsible didn’t instantly reply to requests for remark.
In accordance with courtroom paperwork, the workers conspired with Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist, each of whom beforehand pleaded responsible to associated expenses.
Figueroa, who prosecutors have stated was the “mastermind” behind the scheme, was sentenced in September 2024 to 34 months in jail. DeNicola pleaded responsible in June 2022 and is awaiting sentencing.
4 different charged Amtrak staff haven’t but entered pleas.
They’re: Quinton Johnson, 53, of Irvington; Gregory Richardson, 35, of Roosevelt, New York; Timothy Bogen, 59, of Hamden, Connecticut; and Dion Jacob, 50, of Brooklyn.
The investigation was led by the Amtrak Workplace of Inspector Basic, the Amtrak Police Division, and the Drug Enforcement Administration.