Investigative Reports

Seventeen Amtrak employees based at New York Penn Station or the NW Base in New Jersey, consisting of two Gang Foremen, four linemen, three truck drivers, six 3rd Rail welders, one trackman, and one electronic technician resigned in connection with an OIG investigation of alleged healthcare fraud. Five of those who resigned were among 10 current and former employees charged by indictment June 20, 2024, with conspiracy to commit health care fraud.The resignations occurred between July 15 and September 12, 2024. Our investigation found that the employees participated in an $11 million health care fraud scheme beginning in 2019 and continuing to June 2022 involving health care providers and others who recruited Amtrak employees—primarily from New Jersey and New York—to participate in the scheme. The employees were given cash payments in exchange for allowing the health care providers to use their patient and insurance information to submit fraudulent claims to Amtrak’s health care plan for services that they never provided or that were medically unnecessary.

An Amtrak mechanical foreman based in Miami, Florida, signed a civil settlement agreement on September 10, 2024, with the U.S. Attorney’s Office, Southern District of Florida. The employee agreed to pay $6,000 in restitution and a penalty of $2,325 related to the fraudulent application for an Economic Injury Disaster Loan (EIDL) Advance. Our investigation found that the employee applied for an EIDL Advance for an alleged transportation business. We interviewed the employee and he admitted that his loan application was fraudulent, and the information contained in the application was not accurate. As a result, the employee received an EIDL Advance in the amount of $6,000 to which he was not entitled.

We found that an Area Foreman instructed platform operators to bypass safety systems before a pollution event.

The EPA failed to properly and timely disclose to the OIG unmistakable indicators of fraud against the EPA, the Clean Air Act, and the EPA's programs and operations by a business entity owner. As a result of the EPA's failure to properly disclose these indicators of fraud in a timely manner to the OIG, the U.S. Attorney's Office declined to pursue criminal charges against the business entity owner involved. Failure to disclose fraud, waste, and abuse, or other potential improper or illegal conduct involving an EPA program or operation can negatively impact the EPA's ability to fulfill its mission and ensure the soundness of, and confidence in, the EPA's programs and operations.

An Amtrak carman based in Miami, Florida, signed a civil settlement agreement on September 3, 2024, with the U.S. Attorney’s Office, Southern District of Florida. The employee was ordered to pay $10,717 in restitution and a $1,883 penalty. Our investigation found that the employee falsified applications for two pandemic relief loans. The first loan was an Economic Injury Disaster Loan (EIDL) in the amount of $19,500. The loan was for an alleged agricultural business operated out of his home. The second loan was a Paycheck Protection Program (PPP) loan in the amount of $8,217, which was for an alleged trucking business. We interviewed the employee and he admitted that the agricultural business did not exist, and that his trucking business did not have any revenue or any employees. As a result, the employee received funds to which he was not entitled.

In May 2021, the U.S. Environmental Protection Agency Office of Inspector General Office of Investigations initiated an investigation into allegations that an EPA-funded researcher may be associated with a Chinese talent recruitment program. Subsequently, the EPA OIG has identified a concern regarding the lack of oversight and controls during the EPA research grant application process and duration of the grant. In July 2023, the OIG initiated an investigation into allegations that a major United States university was allegedly receiving funds from China while simultaneously receiving funds from multiple federal agencies, including the EPA. As explained in further detail in this report, the Chinese government sponsors a malign foreign talent recruitment program which could have placed federal funds in jeopardy or resulted in the unauthorized transfer of intellectual property or other nonpublic information.

An Amtrak train attendant based in Miami, Florida, signed a civil settlement agreement on September 2, 2024, with the U.S. Attorney’s Office, Southern District of Florida. The employee was ordered to pay $10,000 in restitution and a $2,500 penalty. Our investigation found that the employee submitted a false claim for an Economic Injury Disaster Loan (EIDL) Advance of $10,000 for an alleged agriculture business, which operated out of his home. We interviewed the employee, who admitted he did not own an agricultural business and that his loan application contained false information. As a result, he received an EIDL loan advance in the amount of $10,000 to which he was not entitled.

We found that the Person in Charge failed to stop a pollution event, ordered platform operators to lie to BSEE inspectors, and falsified inspection logs.