Investigative Reports

Endo Health Solutions Inc. (EHSI) was ordered May 2, 2024, to pay $1.086 billion in criminal fines and an additional $450 million in criminal forfeiture—the second-largest set of criminal financial penalties ever levied against a pharmaceutical company—for violations of the federal Food, Drug and Cosmetic Act (FDCA), according to the U.S. Department of Justice.EHSI pleaded guilty April 18, 2024, to one misdemeanor count of introducing misbranded drugs into interstate commerce. In its plea, EHSI admitted that from April 2012 through May 2013, some of its sales representatives marketed Opana ER with INTAC (Opana ER) to prescribers by touting the drug’s purported abuse deterrence, tamper resistance, and/or crush resistance despite a lack of clinical data supporting those claims. In addition, approved labeling for Opana ER did not provide adequate information for healthcare providers to safely prescribe Opana ER for use as an opioid that is abuse deterrent. According to the plea agreement, EHSI was responsible for the misbranding of Opana ER by marketing the drug with a label that failed to include adequate directions for its claimed abuse deterrence, in violation of the FDCA. EHSI withdrew Opana ER from the market in 2017. The investigation, supported by our office, found that some Amtrak employees and dependents were prescribed the misbranded drug.

A former Alamo Navajo School Board member was sentenced for stealing Federal funds and receiving kickbacks for an IT services contract.

An Amtrak electrical journeyman based in Miami, Florida, resigned from his position on April 19, 2024, as a result of our investigation. We found that the former employee violated company policies by failing to disclose a felony criminal conviction on his background investigation questionnaire when he was hired in 2014. In addition, he violated company policies by failing to notify the company of his pending deportation order that resulted from his arrest for alien inadmissibility per the Immigration and Nationality Act and his ineligibility to legally work within the United States since 2019.

EAC OIG requested that the Department of Interior OIG investigation allegations that the Executive Director of the EAC improperly obtained a pay increase, failed to report annual leave on his time and attendance records, and expensed unapproved training courses.

An Amtrak customer service representative based in Miami, Florida, signed a civil settlement agreement on April 16, 2024, with the U.S. Attorney’s Office, Southern District of Florida. The employee agreed to pay a total of $25,400 to the Small Business Administration (SBA), which includes damages, fees and a fine. Our investigation found that the employee submitted a Paycheck Protection Program (PPP) loan application to the SBA that included false statements and information. As a result, the employee received a PPP loan in the amount of $20,810 to which she was not entitled.

The AmeriCorps Office of Inspector General (AmeriCorps OIG) investigated allegations that a contractor submitted invoices under its Blanket Purchase Agreement (BPA) with AmeriCorps that included unallowable and/or unsupported costs. AmeriCorps OIG’s investigation foundevidence that the contractor billed AmeriCorps $167,714.42 in unallowable charges in violation of acquisition regulations and policies, including, Federal Acquisition Regulation (FAR) 31.201-2(d) Determining allowability, FAR 5.503(c) Proof of advertising, and AmeriCorps Acquisition Policy5.1304(c) Invoice Certification, and the contractor lacked supporting documentation required by the BPA. In addition, the investigation found that the contractor both overbilled and underbilled AmeriCorps, the net of which favored the contractor.

The AmeriCorps Office of Inspector General (AmeriCorps OIG) investigated allegations that the former Executive Director (ED) of the Volunteer and Community Service Commission of Puerto Rico (Commission) attempted to use AmeriCorps funds to award a sole-source contract to a close friend, required prayers before AmeriCorps events, and requested subgrantees allow AmeriCorps members to perform service outside the scope of their grant. AmeriCorps OIG’s investigation confirmed the allegations regarding the sole-source contract and that the former ED required a prayer before the start of multiple AmeriCorps events. The investigation also found that the Commission was not reimbursing its subgrantees in a timely manner and that a former Commission Program Coordinator was improperly paid $2,825.

Jason Chan and Jamar Rogers, both California residents, were sentenced on April 8, 2024, and March 27, 2024, respectively, in the U.S. District Court, Eastern District of California, for Wire Fraud and Aiding and Abetting. Chan was sentenced to 3 years’ probation and Rogers was sentenced to 12 months and one day in prison followed by 3 years’ probation. The men were also ordered to pay a total of $43,518.32 in joint restitution.Our investigation found that Rogers purchased Amtrak tickets with stolen credit cards and exchanged the tickets for vouchers that he then advertised for sale. Chan purchased the vouchers from Rogers at a discounted rate, used them to buy new tickets, cancelled those tickets to obtain new vouchers, and then offered Amtrak tickets for sale at a discount. As a result of the scheme, Rogers and Chan caused Amtrak to issue approximately $38,000 in ticket vouchers and caused losses of over $45,000 to Amtrak, card-issuing banks, and card holders.

We found that the Government email address of a former BIE employee was spoofed to change the employee’s direct deposit information.

On February 29, 2024, an Amtrak sheet metal worker based in Miami, Florida, signed a civil settlement agreement with the U.S. Attorney’s Office, Southern District of Florida, to pay a total of $18,750, including $16,537.34 in restitution. Our investigation found that the employee applied for and received two fraudulent Paycheck Protection Program (PPP) Loans for an alleged automotive repair business in the amount of $5,746 each. The employee claimed to have made over $25,000 in gross revenues from his business that qualified him for the loan. We interviewed the employee who admitted that the business had no reported income in 2019 or 2020 and that the PPP loan applications were false.

On March 11, 2024, an Amtrak customer service representative based in Miami, Florida, signed a civil settlement agreement with the U.S. Attorney’s Office, Southern District of Florida, and agreed to pay a total of $15,000, including $10,000 in restitution. Our investigation found that the employee falsified an application for a COVID-19 Economic Injury Disaster Loan (EIDL), and he received a EIDL loan advance in the amount of $10,000 from the Small Business Administration. While the employee claimed the loan was for a t-shirt making business, when we interviewed the employee, he admitted that the loan application was fraudulent.

An Amtrak Assistant Passenger Conductor based in Philadelphia violated company policy by altering her company paystub for July 2022 and submitting it to a financial institution for the purpose of securing a mortgage loan. On April 2, 2024, the employee received a final warning after she waived her right to a hearing and accepted responsibility for the charges.

The AmeriCorps Office of Inspector General (AmeriCorps OIG) investigated allegations that AmeriCorps Volunteers in Service to America (VISTA) members were paid as employees of the Mississippi Center for Re-Entry (MSCRE) while simultaneously receiving an AmeriCorps living allowance for service at the organization, and that MSCRE’s founder instructed VISTA members to not disclose their employment relationship to AmeriCorps. AmeriCorps OIG’s investigation confirmed that one VISTA member was required to perform duties both within and outside their VISTA Assignment Description (VAD), while simultaneously receiving living allowance payments from AmeriCorps and paychecks from MSCRE. AmeriCorps OIG also confirmed that MSCRE’s founder directed VISTA members to not disclose their employment relationships with the organization to AmeriCorps.