Investigative Reports

A red cap based in Tampa, Florida, was terminated from employment on August 14, 2025, following an administrative hearing. Our investigation found that the former employee violated company policy by not disclosing six criminal convictions on his employee background check during the hiring process and by being dishonest with our agents during his interview.

A sheet metal worker based in Los Angeles, California, was terminated from employment on August 5, 2025, following an administrative hearing. Our investigation found that the former employee violated company policy by making profane, sexually explicit remarks to a female co-worker while on duty. Three other employees corroborated the incident. The former employee is not eligible for rehire.

In June 2024, at our request, the Pandemic Response Accountability Committee (PRAC) found and provided us 36 matches for U.S. Consumer Product Safety Commission (CPSC) employees who were connected to federal government pandemic relief loans. Pursuant to the commitment of the Office of Inspector General (OIG) to fostering and promoting accountability and integrity in government, we undertook an investigation into the 36 matches to determine the appropriateness of these employees receiving pandemic relief loans. Specifically, we sought to detect fraud in these pandemic relief loans.

United States Attorney David Metcalf announced that Allegheny County, Pennsylvania, has agreed to pay $629,043 to resolve allegations that it violated the False Claims Act by failing to contribute the required percentage of resources in exchange for AmeriCorps funds the county received.

A high-speed rail tech based in New York City resigned from his position on July 29, 2025, prior to the conclusion of his administrative hearing. We found that the former employee violated company policies by lying about the extent of an injury while on a medical leave of absence. We also found that the former employee owned and/or operated two companies while on a medical leave, also in violation of company policies. He is not eligible for rehire.

A machinist journeyman based in Sunrise, Florida, was sentenced July 23, 2025, in the Circuit Court of Cook County, Illinois, to 18 months of probation and was ordered to pay restitution in the amount of $90,900 after pleading guilty to one count of felony theft, as a result of money received from fraudulent COVID-19 pandemic-related loan applications. Our investigation found that the employee submitted an application containing false statements to the Small Business Administration to qualify for an Economic Injury Disaster Loan. As a result, the employee received $91,000 to which he was not entitled. The employee also submitted an application containing false statements and information for a Paycheck Protection Program loan, resulting in receipt of an additional $9,194 to which he was not entitled.

Two Amtrak Police Department (APD) senior officers received written counseling on July 23, 2025, as a result of our investigation. We found that one officer violated company policy by having on-duty APD officers transport her to various locations on two days while she was off-duty. In addition, we found that the second officer violated company policy by using his company-issued APD vehicle to go to his father’s residence while on-duty and off-duty.

Three individuals were separately sentenced in U.S. District Court, Central District of California, for their roles in a scheme that defrauded health insurance companies—including approximately $1.15 million in fraudulent billings to Amtrak’s health care plan—through a California-based substance abuse treatment center, Paragon Recovery LLC.

Stephen Reeder, an Ohio resident and Paragon’s program director, was sentenced on June 6, 2025, to two years of probation and ordered to forfeit $42,675. Reeder paid patient brokers William Leonard and Casimiro Bojorquez, both California residents, illegal kickbacks in exchange for unlawfully brokering patients to treatment facilities owned and operated by Paragon.

Leonard was sentenced on July 18, 2025, to five years of probation and ordered to forfeit $234,000. Bojorquez was sentenced on April 11, 2025, to time served, three years of supervised release and ordered to forfeit $176,000.

SEC Investigative Summary 25-0015

We found an energy company failed to decommission operations as required within one year after its Federal oil and gas leases expired.