Investigative Reports

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

The OIG investigated an allegation that a company improperly billed hours in late 2018 and early 2019 to a grant it received from the National Fish and Wildlife Foundation (NFWF) to manage Hurricane Sandy coastal resiliency projects.We determined that five employees of the company recorded 561.75 labor hours to the NFWF grant when, in fact, they worked on a National Oceanic and Atmospheric Administration contract. We learned that the company corrected the improper billing and took administrative action against four employees before we initiated our investigation. The company did not charge the NFWF for the 561.75 labor hours; it, however, also never notified the NFWF of the problem.As a result of our investigative efforts, the company conducted a second review of the billing on the NFWF grant and determined that additional hours charged by three of its employees to the NFWF grant were inappropriate. The company subsequently reimbursed the NFWF $44,332.94. On October 14, 2020, the NFWF provided the company with a written notice terminating its grant agreement, effective 30 days from the date of the memo.

An Amtrak yard conductor based in Washington, DC, resigned from the company on December 31, 2020, prior to his administrative hearing. The former employee was administratively charged by Amtrak management for actions that brought discredit to the company. Our investigation found that the former employee had been indicted on state child molestation charges in June 2020. On December 15, 2020, the former employee was convicted of the charges and sentenced to 18 months in prison, one year home confinement, and five years’ probation.

The OIG investigated an allegation that a former Bureau of Land Management (BLM) surveyor violated ethics rules by representing his current employer in matters on which he personally and substantially worked while at the BLM.We did not find evidence that the former employee violated post-Government employment ethics laws or engaged in any conduct that could be construed as representing his current employer in matters related to the survey at issue.

The OIG investigated anonymous allegations that a Bureau of Indian Affairs (BIA) employee and another individual engaged in inappropriate behavior with two minors under their care. We conducted this investigation with assistance from the Federal Bureau of Investigation. Our investigation found insufficient evidence to prove or disprove the allegations. We coordinated our investigation with the responsible U.S. Attorney’s Office.

The OIG investigated allegations that National Park Service (NPS) employee Stephanie Wallace used another NPS employee’s Government purchase card to make personal purchases. We found that Wallace used the employee’s purchase card to pay for her children’s private school tuition.Wallace pleaded guilty to theft of Government property. She was sentenced to 5 days of home detention and a probationary term of 1 year, and she was ordered to pay restitution totaling $8,328.24.

An Amtrak Police Department employee resigned on December 15, 2020, in lieu of a disciplinary hearing for violating various company policies. Our investigation found that the employee engaged in outside employment during his shifts and while on sick leave. In doing so, the employee also violated his union agreement. The employee shopped online and left for long periods of time to purchase supplies for his outside employment during his APD shifts and engaged in his outside employment while the company was paying him to attend mandatory training. During the training, he took significant steps to hide these actions from being discovered.

The OIG investigated allegations that Extraction Oil and Gas (EXT) drilled multiple horizontal wellbores through a railroad right-of-way (ROW) in Weld County, CO, containing Federal minerals without first obtaining a Federal lease or drilling permit.We found that three companies (EXT, Mineral Resources, Inc., and PDC Energy, Inc.) illegally drilled oil wells through a railroad ROW and produced unleased Federal minerals. Based on our investigation, the U.S. Attorney’s Office for the District of Colorado entered into civil settlement agreements with all three companies to resolve the violations and recover public revenues. The settlements totaled more than $1,787,000.

A Lead Service Agent, based in New York City, resigned on December 12, 2020, prior to her disciplinary hearing for violating Amtrak policies by adding tips to at least two Café Car credit card transaction receipts without the knowledge or authorization of the customers.

Two senior Amtrak Information Technology employees were terminated on December 11, 2020 for violating company policies by (1) steering contracts to close personal friends; (2) failing to disclose relationships between company employees and vendors; (3) engaging in conflicts of interest by approving invoices for personal gain; and (4) coordinating with contractors during a competitive solicitation, misrepresenting Amtrak’s requirements, and engaging in other activities that undermined the Procurement department’s ability to ensure its decisions were in the company’s best interest.

The OIG investigated allegations that a Bureau of Land Management (BLM) employee sexually assaulted another BLM employee while off duty.We found insufficient evidence to prove or disprove the allegation, and further investigation is unlikely to produce additional evidence. The alleged victim did not have any memory of an assault but also denied being drugged or otherwise incapacitated; the alleged wrongdoer claimed that they had consensual sex. The employee did not file a police report, and the local prosecutor’s office declined prosecution.

The OIG investigated allegations that a current Bureau of Indian Education (BIE) employee knew, or should have known, that a student was sexually assaulted at the school and failed to report this information. We found that the employee failed to report a conversation regarding the incident as required by the Indian Child Protection and Family Violence Prevention Act.