Investigative Reports

The OIG investigated allegations that two Bureau of Land Management (BLM) officials inappropriately released BLM records without going through the Freedom of Information Act (FOIA) review process. The complaint also separately alleged that certain other BLM records could not be found and appeared to have been destroyed.We did not substantiate the allegations. We found that the records the BLM released were public and did not require a FOIA review. Moreover, following our request to the BLM for the allegedly missing records, BLM officials located and provided us copies of all relevant documents. Accordingly, we found no support for the claim that documents had been improperly destroyed.

The OIG investigated allegations that a GS-12 employee with the Office of the Secretary misused his Government purchase card to buy computers without authorization, made other improper purchases with his Government purchase card, and filed false time and attendance certifications.We did not find evidence that the employee made improper purchases or converted Government equipment to personal use, but we did find that he failed to properly record his time and attendance. We questioned 74 hours that the employee claimed as regular time when it appears he should have taken annual or sick leave.

The VA Office of Inspector General (OIG) conducted an administrative investigation in response to a referral from VA officials about the potential for a conflict of interest involving VA employees’ establishment of a cooperative research and development agreement (CRADA) between VA and a private company in 2016. The CRADA contemplated VA sharing with the private company the health data of all veterans who had ever received health care from VA. The CRADA was canceled prior to the release of any health data. The OIG did not substantiate the existence of any conflict of interest; however, investigators found that two VA employees involved in creating the CRADA made false representations to and concealed material information from VA’s approving official for the agreement. Before the CRADA was executed, VA privacy experts informed the two VA employees that the terms of the proposed CRADA raised regulatory concerns that needed to be addressed before approval. Despite the privacy experts’ objections, the two VA employees intentionally failed to disclose the unresolved privacy issues to the approving official. They also falsely represented that all reviews, including privacy, information security, and legal, had been completed—implying that any identified issues had been addressed and resolved. The OIG concluded that the approving official relied on the information received from the two VA employees and was led to approve the CRADA under false pretenses. As a result of the two VA employees’ actions, the health data of tens of millions of veterans would have been placed at risk of disclosure if VA officials had not detected a problem and cancelled the CRADA before information was shared with the private company. The matter was declined for prosecution. The OIG made two recommendations related to determining what administrative action, if any, VA should take with respect to the two employees’ conduct.

Two Amtrak coach cleaners based in Sanford, Florida, resigned from the company on January 21, 2021, prior to their administrative hearings. Our investigation found the former employees violated company policy by engaging in outside employment and other activities, such as traveling on a personal vacation, which interfered with their job duties and responsibilities, and they improperly used Family Medical Leave Act leave or sick leave to do so.

The OIG investigated allegations that a tribal wildland fire employee submitted false overtime claims in 2018.We found insufficient evidence to prove or disprove the allegation. The wildland fire employee denied the allegations and said any overtime claimed was fire related, and we did not find any evidence to refute this statement. The wildland fire employee’s supervisor signed and approved all the employee’s timesheets.

Marc Hoang, a Pharmacist based in West Covina, California, pleaded guilty in United States District Court, Central District of California, on October 26, 2020, to making a false statement related to a health care fraud investigation. Our investigation found that Hoang knowingly and willfully made a materially false and fraudulent statement on a Drug Enforcement Administration (DEA) form. Hoang submitted the form to the DEA to renew the controlled substances registration for his former pharmacy. On the form, Hoang represented that he was the person who distributed the controlled substances and was the officer and point of contact for the pharmacy, when in fact, he was not.In this same investigation, Navanjun Grewal, a Plastic and Reconstructive Surgeon based in Beverly Hills, California, pleaded guilty in United States District Court, Central District of California, on January 13, 2021, to making and using a false document and to obstruction of a federal audit. Our investigation found that Grewal created false and fraudulent patient files in response to an audit request regarding prescriptions for compounded medications that were submitted for reimbursement.Both defendants will be sentenced at a future date.

A Pennsylvania man pleaded guilty in U.S. District Court, Northern District of Illinois, to theft of government funds on January 12, 2021. Our investigation disclosed that Ryan Kane, a resident of Philadelphia, participated in a scheme to defraud Amtrak and others by using stolen credit card information from more than 10 credit cards to purchase Amtrak tickets online. Kane then cancelled the Amtrak tickets and received vouchers for the value of those tickets from Amtrak. Kane sold the Amtrak vouchers on eBay at a fraction of their face value. As a result, Kane fraudulently caused Amtrak to issue more than $35,000 in ticket vouchers.In addition, Kane conspired with Christian Newby by showing him how to execute the scheme. Newby, a resident of Milan, Michigan, defrauded Amtrak of more than $540,000 and was sentenced to 72 months in federal prison in September 2020.Kane will be sentenced at a future date.

An Amtrak carman based in Beech Grove, Indiana, was terminated from employment on January 9, 2021, following his administrative hearing. Our investigation found the former employee violated company policy when he failed to report multiple drug or alcohol related convictions on his initial background investigation questionnaire.

DOL-OIG Investigations Newsletter Volume XXXI for the period of October 1 - November 30, 2020