Investigative Reports

A contractor agreed to reimburse Amtrak $771,813 for overbilling base labor and overhead rates on contracts that required the use of actual labor and indirect cost rates. The contractor voluntarily self-reported the overbilling to our office on July 26, 2022, after conducting internal audits related to two prior OIG investigations. On January 30, 2024, the contractor resolved these billing issues with Amtrak, covering overbilling on 22 contracts during the period from 2016 to 2022.

The fiscal year 2024 investigative priorities address the most significant challenges related to the programs and operations of the EPA and the CSB.

David Pugliese, a resident of Palm Beach County, Florida, was sentenced on January 12, 2024, in U.S. District Court, Southern District of Florida, for Conspiracy to Commit Health Care Fraud. Pugliese was sentenced to 30 months in prison, two years’ probation, and was ordered to pay restitution in the amount of $2,238,699. Pugliese was the manager and registered agent of Capital Advantage Diagnostics, LLC, which was purportedly in the business of performing a variety of laboratory tests for various health care providers.Our investigation found that Pugliese and others submitted false and fraudulent claims to Medicare and Amtrak’s insurance providers for claims that were not medically necessary or for laboratory tests that were never performed. Pugliese solicited beneficiary information and specimens for testing through the use of individual laboratory representatives and paid bribes to these representatives for specimens they provided. As a result of the scheme, Amtrak’s insurance providers were billed approximately $315,474.

Marc Hoang, a pharmacist based in West Covina, California, was sentenced on January 8, 2024, in U.S. District Court, Central District of California, for making a false statement related to a health care fraud investigation. Hoang was sentenced to two years’ probation.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. Hoang was part of a large health care fraud scheme, in which beneficiaries were solicited to provide their insurance information to a pharmacist for medication they did not seek or need. As a result of the scheme, Amtrak’s health care plan was billed $32,489 of which $26,962 was paid, and Tricare, the U.S. military’s health care plan, paid $12,264,685 on the fraudulently submitted claims.

An Amtrak Senior manager based in Philadelphia was terminated from employment on December 8, 2023, as the result of our investigation that found he submitted falsified applications to the Small Business Administration for a Coronavirus Aid, Relief, and Economic Security Act Economic Injury Disaster Loan. In addition, the former employee signed a civil settlement agreement with the U.S. Attorney’s Office, Middle District of Florida, and agreed to pay $25,441 in restitution related to the fraudulent loan.

An Amtrak Train Attendant based in Miami, Florida, was terminated from employment on January 2, 2024, following our investigation. Our investigation found that the employee violated company policies by engaging in outside employment at several companies while on a medical leave of absence. During her interview, the employee admitted that she was employed full-time with various employers from 2019 through 2023.

The Washington Metropolitan Area Transit Authority (WMATA) Office of Inspector General (OIG) reported to our office that a contractor employed by Amtrak as a project manager/consultant was also working as a full-time senior employee at WMATA. Beginning in October 2023, the contract worker was working a full-time schedule for Amtrak that significantly overlapped with his work schedule for WMATA. During his interview with WMATA OIG and Amtrak OIG agents, the contractor admitted to working both jobs and to violating time and attendance policies.The Amtrak vendor terminated the contract employee on December 26, 2023, for violating his conditions of employment. On December 28, 2023, he resigned from WMATA.

The EPA OIG Office of Investigations has identified concerns regarding the EPA’s failure to properly oversee and administer its Clean School Bus Program.

An Amtrak Conductor based in Jacksonville, Florida, signed a deferred prosecution agreement in the Seventh Judicial Circuit, State of Florida, on December 22, 2023. The charges will be dismissed if the employee fulfills the terms of the agreement. Our investigation found that the employee attempted to sell high-security railroad switch keys on Facebook Marketplace. The employee was previously suspended from employment without pay in lieu of termination for a period of 67 days.

An investigation of alleged misuse of government resources by an FEC employee.

An Amtrak supervisor based in Philadelphia violated company policies by using his company‐leased vehicle and, occasionally, his company fuel card to travel to his vacation home at least thirteen times over a nine‐month period. The employee admitted to these actions during his interview with our agents. He was removed from his supervisory position on December 18, 2023.

Ronald Andrulonis, a former Amtrak employee, was sentenced December 15, 2023, in U.S. District Court, District of Columbia, to 14 days in prison, three years’ probation, and was ordered to pay $500 in restitution. Andrulonis was charged with Entering and Remaining in a Restricted Building or Grounds after entering the U.S. Capitol on January 6, 2021.