At least 119 current and former Amtrak employees have conspired to collude with New York medical professionals to deceive the company's healthcare plans for more than $12 million, the Inspector General's Amtrak office said in a report released Tuesday.
Amtrak inspector Kevin H. Winters, who released the position this week, so the zealous staff who stole Amtrak’s funds not only showed that at least in the Northeast, not only was an unsettling workforce culture in the Northeast, but also a disturbing workforce culture that was normalized in some way. ”
Amtrak is a for-profit company with more than 20,000 employees, operates railroads in 46 states and receives billions of dollars in federal funding.
Twelve Amtrak employees and three health care providers have been criminally charged in federal court for their participation.
The report said two Amtrak employees, Devon Burt of Pennsylvania and Hallum Gelzer, an accomplice in East Orange, New Jersey, allegedly working with health care providers to recruit Amtrak employees to the program. The report said they found Amtrak employees in Pennsylvania, Delaware, New Jersey, New York, Maryland, Connecticut and Washington, D.C. willing to attend.
The report said employees accepted cash from health care providers in exchange for using their insurance information. The information was then used to file fraudulent claims (services that were never provided), the Inspector General said.
Burt and Gelterzer pleaded guilty in June 2023 to federal conspiracy to commit health care fraud and conspiracy to exchange blackmail threats. As part of their plea agreement, Bert agreed to pay $959,072 in damages, while Gelzer agreed to pay about $1.66 million.
The other six employees also pleaded guilty to the health care fraud conspiracy charges, the report said. It is not clear who the procuratorate is or the jurisdiction of the contract.
About 28 employees retired or resigned, and 30 left the company for undisclosed reasons, the report said.
"In general, Amtrak's healthcare program charges more than $16 million and pays more than $12 million during the program," OIG found.
OIG initially began investigating when agents noticed an abnormal billing pattern between three New York healthcare providers and a large number of shared Amtrak employees.
Amtrak said the agency is considering disciplinary action against the remaining 61 active employees.
"Major steps have been taken to address Medicare fraud, and like many employers, they call on health care providers and insurers to do more to identify suspicious activities and stop Medicare fraud," Amtrak said in a statement to CBS News on Thursday.
CBS News and the Justice Department.