Federal Reports

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Andre Wilburn, a resident of New York, pleaded guilty in U.S. District Court, Eastern District of New York, on October 24, 2019, to access device fraud and aggravated identity theft for his involvement in an Amtrak eVoucher scheme. Wilburn and his co-conspirators used stolen credit card information to make unauthorized purchases of Amtrak tickets and then cancelled or exchanged those tickets for eVouchers. Subsequently, they sold the fraudulently obtained eVouchers on the internet. Wilburn’s sentencing is pending.

An Amtrak supervisor resigned on November 14, 2019, for violating company policy by stealing company property and misusing his own and other employees’ company time for personal tasks. The case has been referred to the U.S. Department of Justice, and criminal proceedings are pending.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2019 financial statements performed by Ernst and Young LLP (EY) to assure their work complied with Government Auditing Standards. Our review of EY's work disclosed no instance in which the firm did not comply in all material respects with Government Auditing Standards.

I am pleased to submit the Amtrak Office of InspectorGeneral Semiannual Report to the United StatesCongress for the six months ending September 30,2019. This is the 60th semiannual report we haveproduced since our establishment in 1988.During this period, our investigators identified a fraudscheme in which criminals used stolen credit cards tobuy Amtrak tickets, cancel the tickets in exchange forelectronic vouchers, and subsequently sell the vouchersvia the internet. In one case involving over $540,000 infraudulent vouchers, our agents searched the subject’sresidence, and discovered numerous explosive devices,loaded semi-automatic weapons, armor piercingammunition, cash, and illegal drugs. Our work inthis area has led to arrests, indictments, and in theaforementioned case, a guilty plea.Investigative work also led to a $466,500 settlementrelated to a scheme in which several contractorsallegedly inflated invoices and engaged in bid rigging onAmtrak construction projects. Additionally, our agentspursued multiple cases of health care fraud in whichcriminals bilked Amtrak’s insurance plans through falseclaims, excessive and unnecessary tests, and prescribingunnecessary and expensive drugs and medicalequipment (oftentimes without the patients’ knowledge).Our auditors continued to generate impactful reports,such as a report on security at Washington UnionStation and Ivy City maintenance facility. We foundthat perimeter and interior security weaknesses, someof them longstanding, put Amtrak employees andpassengers at risk. We also completed the third auditin a series that examined staffing practices within thecompany’s Mechanical department, where we foundit had not systematically managed its workforce at keypreventative maintenance facilities, which resulted inunnecessary costs.Finally, we welcome our new Deputy InspectorGeneral, Mary L. Kendall, who brings a wealth ofexperience to our team. In the next six months, wewill continue to focus our efforts on high-impact areasimportant to the company, the Board of Directors,Congress, and the public. We trust that you will findthis report informative.