Investigative Reports

A former Amtrak Program Manager based in Washington, D.C., and her sister entered into a Community Service Deferred Sentencing Agreement, in Superior Court, District of Columbia, on October 28, 2019. As part of the agreement, they agreed to each pay $2,128 in restitution to Amtrak, complete 48 hours of community service, write a letter of apology to Amtrak, and not violate any laws for six months in order to avoid sentencing for their crime. The employee was terminated on July 1, 2019, for fraudulently allowing a family member to use her company travel pass and Amtrak Identification card to frequently travel on Amtrak trains between May 2018 and June 2019.

An Amtrak On Board Services employee in New Orleans was terminated from employment on October 9, 2019, following an administrative hearing for violating company policy. Our investigation found that the employee fraudulently advertised and accepted payment for an Amtrak private charter trip that Amtrak officials neither authorized nor scheduled. The employee accepted $400-$500 for reservations from at least 35 members of the public for this non-existent trip. As part of the fraudulent scheme, the employee used the Amtrak company logo, company e-mail, and photographs in communications with the victims. Judicial proceedings are pending.

Joshua Pearson, a marketer from St. George, Utah, pleaded guilty on October 22, 2019, in U.S. District Court, Central District of California, to receipt of illegal kickbacks related to a health care fraud scheme. As part the scheme, Pearson received kickbacks from Sheridan Medical for patient referrals for compounded drugs—drugs that were medically unnecessary. A marketer from Sheridan Medical and the owner of Fusion Rx Compounding Pharmacy, both in Los Angeles, were also charged for their role in the scheme. The Amtrak health insurance plan was fraudulently billed $17,000 as a result of the scheme. Criminal judicial proceedings for all three defendants are pending.

Lamont Brown, a resident of Brooklyn, NY, pleaded guilty in U.S. District Court, Eastern District of New York, on October 10, 2019, to conspiracy to commit wire fraud, for his involvement in an Amtrak eVoucher scheme. Brown and his co-conspirators used stolen credit card information to make unauthorized purchases of Amtrak tickets and then cancelled or exchanged those tickets for eVouchers. Subsequently, they sold the fraudulently obtained eVouchers on the internet. Brown’s sentencing is pending.

A former Road Mechanic based in Providence, Rhode Island, resigned from employment in March 2019 during the course of our investigation, which revealed the employee violated company policies by leaving his work site to engage in outside employment as a tow truck operator during his Amtrak work shifts from July 2017 until December 2018. Although the employee resigned, he continued to seek re-employment with Amtrak. On October 6, 2019, Amtrak designated him as ineligible for rehire.

DOJ News Release