Investigative Reports

An Amtrak employee based in Albuquerque, New Mexico, was terminated from employment on October 5, 2022, after our investigation found that the employee violated company policies by posting inappropriate and offensive language and images on her publicly available Facebook account that also identified her as a company employee. The former employee admitted to posting the language and images, which she acknowledged could be deemed as offensive and inappropriate by customers and other employees. In addition, the former employee also admitted to accepting a gift from a customer that she stated was valued at $300, also in violation of company policy.

An Amtrak Trackman based in New York was terminated on September 20, 2022, after his disciplinary hearing for violating company policies. The former employee posted inappropriate and offensive images—including one depicting what appeared to be illicit drugs—as well as an internal company document, on his public Facebook account, which also identified him as an Amtrak employee.

An Amtrak Electronic Specialist and a Maintainer based in Newark, New Jersey, resigned in lieu of their disciplinary hearings on September 14, 2022, and September 27, 2022, respectively. We determined that Keith Kovaleski, an Assistant Foreman based in New York who is currently awaiting sentencing after pleading guilty on March 21, 2022, to conspiring to distribute misbranded and unapproved new drugs, paid the two former employees to set up financial accounts to accept payments on behalf of Kovaleski for his illegal activities in exchange for a portion of the proceeds. In addition, the Maintainer received packages at his home for Kovaleski that contained misbranded and/or unapproved new drugs from Kovaleski’s company, All American Peptide (AAP). The Electronic Specialist ordered and received misbranded and/or unapproved new drugs from AAP at his home. The former employees are ineligible for rehire.

This administrative investigation addressed allegations that VA’s Executive Protection Division (EPD), a component of VA’s Office of Operations, Security, and Preparedness (OSP) that provides protective services to the VA Secretary and Deputy Secretary, was inadequately equipped. The allegations included that EPD personnel (special agents and physical security specialists) had expired or no ballistic body armor (vests), that senior leaders in OSP were aware of this and had denied previous requests to purchase vests, and that special agents’ firearms malfunctioned frequently and needed to be replaced.The OIG found that VA had not procured ballistic vests for some EPD personnel despite a standard operating procedure requiring them to wear body armor most of the time they were working. Further, there were no procedures to assess compliance (such as routine inspections) or establish consequences for nonuse; procure body armor for new personnel; track the condition of armor assigned to personnel; or replace vests that were beyond the manufacturer’s warranty, did not fit, or had other defects.However, the available evidence did not substantiate allegations that senior leaders in OSP had denied vest procurement requests or knew that some personnel needed them. The OIG also could not substantiate based on documentation and interviews that EPD special agents’ firearms malfunctioned frequently and needed replacement.To effectively protect its employees and leaders, VA must provide EPD personnel with the basic safety equipment for performing their jobs. VA concurred with the OIG’s four recommendations for improvements to EPD procedures to address the issuance, maintenance, and replacement of ballistic body armor, as well as enforcing the requirement that EPD personnel wear their vests. It also concurred with the recommendation calling for a review of the condition of all firearms assigned to EPD special agents.

A Trackman/Watchman based in New York resigned on April 12, 2022, prior to his disciplinary hearing. The former employee failed to report his two alcohol related arrests in August 2017 and August 2019 and their corresponding convictions in July 2019 and April 2021.

The Federal Election Commission (FEC) Office of the Inspector General (OIG) initiated an investigation to inquire into an anonymous hotline complaint that alleged a senior agency employee was engaged in outside employment without agency approval or clearance in violation of federal regulations and FEC rules. Investigation of the matter determined the allegation was not substantiated because the employee in question (the subject) was not employed by the company while also an FEC employee.

Darius Lopez, a resident of Tampa, Florida, pleaded guilty in U.S. District Court, Middle District of Florida, to fraud and related activity in connection with access devices on September 1, 2022. Lopez was arrested on April 15, 2021, by the Citrus County Sheriff’s Department for using counterfeit credit cards to purchase over $20,000 of landscaping equipment. At the time of his arrest, Lopez was in possession of numerous counterfeit credit cards, including a fake GSA SmartPay purchase card with a purchase card number that was issued to Amtrak. This investigation is being conducted jointly with the GSA Office of Inspector General.

Findings Related to the Former SEC Ombudsman

Dominic Signorelli, a podiatrist based in Los Angeles, was sentenced in U.S. District Court, Central District of California, on August 29, 2022, to five months in prison followed by 5 months’ home detention upon his release. He was ordered to pay a fine of $150,000 and to forfeit $955,000. Our investigation found that Signorelli received kickbacks from marketing companies for prescribing unnecessary compounded medications to patients without their knowledge. As a result of the scheme, Amtrak’s insurance providers were fraudulently charged approximately $22,000. A total of 11 defendants have been convicted and sentenced in conjunction with this scheme, with one defendant remaining to be sentenced.

We found that former Secretary Ryan Zinke and his former Chief of Staff did not comply with their duty of candor when they spoke to OIG investigators.