Investigative Reports

A former ticket agent who was assigned to Los Angeles Union Station pleaded guilty to felony charges for theft of funds in U.S. District Court on February 25, 2019. Our investigation determined that the former ticket agent would wait until train conductors electronically scanned passenger tickets and would then reset the ticket status as if it had not been scanned at all. This process of resetting the ticket status allowed the tickets to be refunded or exchanged. Subsequently, the former ticket agent processed the reset tickets for cash refunds, taking and keeping the money from her cash drawer.As part of her plea agreement, the former ticket agent was selected for the Conviction and Sentence Alternatives program of the Central District of California. She will be required to pay $3,616 in restitution, $700 for a special assessment, and successfully complete the year-long program prior to her sentencing.As the result of our investigation into this scheme, five other ticket agents resigned prior to their administrative hearings.

An Amtrak Foreman/Trackman in Los Angeles, California, was terminated from employment on February 25, 2019, following the employee’s administrative hearing for violating company policies. Our investigation found that the Foreman/Trackman stole paper products from the locker room supply cabinet and then lied about it during his interview with our agents.

The OIG investigated allegations that an oil and gas production company drilled two wells in Noble County, OK and trespassed into acquired Federal lands. Further, the company allegedly began producing oil and gas without a properly executed mineral lease, which may have resulted in the loss of public resources and revenues.We found the land parcels in question were not acquired Federal lands, therefore, the company did not trespass into minerals owned by the Federal Government as alleged.

The OIG investigated allegations that a United States Geological Survey (USGS) manager made unwelcome and inappropriate comments of a sexual nature to a female subordinate.We found that the USGS manager provided inconsistent statements and demonstrated a lack of candor during interviews, but ultimately admitted to making inappropriate sexual comments to the female subordinate. We also found that the manager had been counseled by a former supervisor in 2013 for allegedly making similar comments to other employees and, consequently, had been required to take Equal Employment Opportunity training; the manager had also been counseled by a current supervisor in 2016 for the same reason.

The OIG investigated allegations that a former National Park Service (NPS) contract specialist steered three contracts to a vendor because of a personal relationship.We found that the contract specialist had a personal relationship with the vendor’s employees and attempted to influence contract awards by inappropriately advocating for the vendor, which violated Federal ethics regulations. We found, however, that the contract specialist ultimately had no influence over awarding contracts to the vendor and that the contracts were awarded properly. We also found that while the contract specialist managed the vendor’s contracts, he sought employment with the vendor for a family member, but the family member was never hired.The contract specialist left the Department after learning of our investigation. We referred our findings to the U.S. Attorney’s Office for the District of Colorado, which declined prosecution.

Two Amtrak employees, Narcisse Tsaba, Electrician, and Jean-Jacques Lontchi, Locomotive Inspector, resigned on February 4 and February 12, 2019, respectively. The two employees previously pleaded guilty to misdemeanor fraud charges in the District of Columbia Superior Court for participating in a fraudulent timekeeping scheme. The former employees inappropriately received pay from both Amtrak and the Washington Metropolitan Area Transit Authority (WMATA) by claiming to be at one employer while physically reporting to the other. The Court ordered Tsaba to pay $7,492 in restitution and Lontchi $3,524 in restitution. This joint investigation was conducted with the WMATA Office of Inspector General.

An Amtrak Superintendent in Los Angeles, California, was terminated from employment on February 9, 2019, following the issuance of our investigative report that determined the Superintendent violated company policy. Our investigation found that the Superintendent awarded more than $22,000 in advertising and other work to a vendor without a formal agreement and accepted gifts from the owner of the company.On February 19, 2019, the vendor was suspended and Amtrak is no longer purchasing goods or services from, or providing services to, the vendor.

The OIG investigated allegations that a Tribe wrongfully took funds from a tribally-operated boarding school funded by the Bureau of Indian Education (BIE). We also investigated whether findings and questioned costs identified in an audit of the school rose to the level of criminal misconduct.We found no evidence to indicate the Tribe wrongfully took school funds. In addition, though the BIE has issued two bills of collection to recuperate some of the questioned costs identified in the audit, we did not identify criminal misconduct associated with those findings.

An Amtrak Foreman was formally reprimanded and disqualified from his current position on January 22, 2019, for one year after he admitted to violating the company’s Standards of Excellence and Acceptable Use policies for computer and network systems. The employee inappropriately viewed movies while on duty after they were uploaded to his Amtrak computer. A Locomotive Technician was counseled for his part in bringing the movies to work and providing them to the foreman.

The OIG investigated allegations that Smith & Marrs, Inc., an oil and gas production company, failed to report mineral production and sales from Federal leases located in New Mexico, which resulted in a loss of royalties owed to the U.S. Department of the Interior (DOI). We conducted the investigation jointly with the Bureau of Land Management’s (BLM) Special Investigations Group. We found that Smith & Marrs, Inc., failed to properly report oil and gas production and sales from Federal leases, which resulted in an underpayment of royalties and late payment interest. We then coordinated with ONRR officials to determine the total loss of royalties and interest, and ONRR sent Smith & Marrs payment requests for royalties due and late payment interest, which amounted to approximately $158,000. ONRR subsequently confirmed they had received full payment from Smith & Marrs.We referred our investigative findings to the U.S. Attorney’s Office for the District of Colorado, which declined prosecution.

Two executives at a textile company, based in Milford, Delaware, pleaded guilty to federal program bribery charges in U.S. District Court in February.Donald Crothers, the company’s vice president for marketing and contract administration, and John Gonzales, the company’s executive vice president and chief financial officer, pleaded guilty for their roles in a bribery scheme to secure Amtrak contracts for seat cushions. The executives bribed former Amtrak employee, Timothy Miller, then a Lead Contract Administrator, to steer four fleet maintenance contracts to their company in exchange for approximately $20,000 in bribes, trips, and other items of value. Crothers pleaded guilty on February 4, 2019, and Gonzales’ guilty plea came the following day.A cross-agency team of special agents from Amtrak OIG, the FBI, and the U.S. Department of Transportation OIG conducted the investigation that resulted in the charges.

An Amtrak Passenger Conductor, two Assistant Passenger Conductors, and an Usher/Gateman were disciplined for policy violations on February 5, 2019. The employees allowed and/or assisted non-ticketed passengers to receive unauthorized free travel aboard company trains on several occasions, generally at the request of other Amtrak employees. The employees received suspensions ranging from four to five days each.

The OIG investigated allegations that two propane delivery contractors, one of which was American Indian-owned, conspired to improperly obtain U.S. Government contracts that are restricted to Indian economic enterprises under the provisions of the Buy Indian Act. Specifically, we investigated to determine if the Indian-owned company subcontracted 100 percent of contract performance to the non-Indian-owned company.We found that the Indian-owned company was awarded approximately 17 contracts, with a combined value of about $350,000, under the Buy Indian Act. We also found that though the Indian-owned company received approximately 51 percent of the net profit, it had little or no involvement with the actual performance of the propane supply contract: the non-Indian contractor provided all the fuel and made all the physical deliveries, thus violating the Buy Indian Act.

The OIG investigated allegations that a refuge manager with the U.S. Fish and Wildlife Service (FWS) did not report an alleged indecent exposure, violated various Federal regulations and FWS policies related to the refuge’s Friends organization and concessionaire, and authorized the improper use of Government facilities and equipment.We determined that the refuge manager violated FWS policy when he did not report an indecent exposure incident that had occurred at the refuge in 2016, and that he violated Federal ethics regulations by participating in the refuge’s Friends organization’s fundraising events while in uniform. We also found that the manager violated Federal regulations and FWS policy when he allowed a for-profit corporation to operate on the refuge without an agreement or permit, and by allowing a concessionaire to operate a fish cleaning station on the refuge, which could make it difficult for refuge officials to enforce fish size limits. Finally, we found that the manager violated Federal regulations by improperly using and disposing of Government property.

The OIG investigated allegations of misuse of funds by an Alaska Native organization after the single audit found approximately $108,561 in questioned costs. The organization is funded through a cooperative agreement with the U.S. Fish and Wildlife Service. We investigated to identify any criminal misuse of funds.We confirmed the single audit findings, but we did not find criminal misuse of funds.

A former Amtrak employee was sentenced on January 22, 2019, in U.S. District Court to a year and one day incarceration for federal program bribery. Also, the court ordered the employee to forfeit funds and property totaling $20,042.Timothy Miller, who pleaded guilty on April 19, 2018, to one count of federal program bribery, was employed as a Lead Contract Administrator with Amtrak and was responsible for procuring equipment and services and managing the account for diesel and locomotive seat-cushion vendors. According to court documents, Miller steered four fleet maintenance contracts worth more than $7.6 million to a single vendor in exchange for approximately $20,000 in bribes, trips, and other items of value.A cross-agency team of special agents from Amtrak OIG, the FBI, and the U.S. Department of Transportation OIG conducted the investigation that resulted in the charge.