Investigative Reports

An Amtrak coach cleaner in Chicago, Illinois, was terminated from employment on October 14, 2020, following her administrative hearing. The former employee participated in a medical fraud scheme in violation of company policies. Our investigation found that the former employee provided a chiropractor based in Dolton, Illinois, with her medical and personally identifiable information and that of her dependents in exchange for cash kickbacks. The chiropractor used the information to fraudulently bill Amtrak’s health insurance plan for services that were not provided.

The OIG investigated allegations that QEP Energy Company (QEP) failed to properly value minerals produced from Tribal and Indian Allottee properties for 2013 and 2014.We found that QEP underpaid mineral royalties owed to Indian mineral owners in North Dakota, Oklahoma, and New Mexico by $118,716. Subsequently, the Office of Natural Resources Revenue (ONRR) discovered QEP also undervalued natural gas liquids associated with the leases included in our investigation. This separate violation directly affected QEP’s overall royalty obligation. As a result, ONRR needed to complete an audit to determine any further extent of QEP’s royalty obligations. This matter was referred to ONRR for administrative resolution.

Ryan Taylor Minter, of Calumet City, Illinois, was sentenced in United States District Court, Central District of Illinois, on October 6, 2020, to 18 months in prison, one-year probation and was ordered to pay restitution of $15,938 for wire fraud charges. Our investigation found that Minter participated in a scheme to defraud Amtrak and others by using stolen credit card information from at least 216 different credit or debit cards to purchase Amtrak tickets online valued at over $29,000. Minter used Amtrak’s mobile application and website to purchase the tickets and then advertised them at a discounted price on social media sites frequented by college students.

Irena Shut, a medical marketer based in Los Angeles, California, was sentenced in United States District Court, Central District of California, on October 5, 2020, to two years’ probation for conspiracy to commit health care fraud. Our investigation found that Shut was paid commissions for facilitating the referral of prescriptions for medically unnecessary compounded drugs and other items reimbursed by health care benefit programs. As a result of the scheme, Amtrak’s insurance providers were fraudulently charged approximately $22,000. Criminal judicial proceedings for other defendants in this case are pending.

The VA Office of Inspector General (OIG) received wide-ranging allegations of misconduct in the operations of the Veterans Health Administration’s Consolidated Patient Account Center (CPAC) field offices, which function within the Office of Community Care and conduct medical billing functions for VA medical centers in designated regions. The OIG substantiated the following allegations: 1. CPAC management improperly used government funds to purchase food for CPAC employees in fiscal years 2015 and 2016 in connection with events held as part of VA’s Diversity and Inclusion initiative; 2. One CPAC violated VA policy for disposing of excess equipment when computer monitors were given to a local school without following established procedures; and 3. Some CPAC field offices violated VA policy requiring that destruction of temporary paper records be performed pursuant to a written contract. The OIG made two recommendations, with which VA concurred and took prompt corrective action. The OIG considers these recommendations closed. Allegations relating to improper travel, the misuse of funds for the purchase of daily planners and a wheelchair, and the improper use of purchase cards for armored car services were not substantiated.

A Mechanical Inspector based in Beech Grove, Indiana, violated Amtrak policies by posting images and material characterized as disturbing, offensive, and inappropriate on a publicly available social media site. The former employee admitted to posting images which promoted Nazi ideologies on a social media website which identified him as a company employee. We also found that he was arrested in November 2016 for Driving Under the Influence and did not report his arrest to the company as required by company policy. The employee resigned on September 9, 2020, in lieu of a disciplinary hearing and is not eligible for rehire.

The OIG investigated allegations that a Bureau of Land Management (BLM) State Director used their Government position for the financial gain of two personal friends. We found no evidence that the State Director misused their Government position or violated any ethics regulations.

This investigation was initiated after OIG auditors identified irregular transactions paid for with a TVA Purchasing Card. More specifically, the auditors discovered the Purchasing Card was used by a cardholder to make payments to an apartment complex. The subsequent investigation substantiated that the employee used the card to make several monthly rental payments to the apartment complex where she lived. To address this situation and prevent similar improper usage of the Purchasing Card in the future, the OIG made several recommendations. The OIG recommended TVA do the following: (1) Take action to recover from the employee the outstanding balance of the unauthorized transactions, (2) consider disciplinary action against the employee, (3) ensure that all cardholders and approvers in Transmission and Power Supply are current on annual Purchase Card training, and (4) take measures to ensure approving officials are notified when Purchasing Card statements are not reconciled monthly and to suspend cards when there is repeated noncompliance with this requirement.