How Amtrak workers have transformed their health benefits into a fraud of $ 11 million
Federal prosecutors claim that a group of Amtrak employees conspired with corrupt health care providers to defraud the company’s health plan with more than $ 11 million.
The program, which took place from January 2019 to June 2022, involved employees allowing suppliers to use their personal and insurance information to submit false complaints for treatments that have never been provided or have been medically useless.
In return, the employees received thousands of dollars of bribes in cash.
Until now, five Amtrak employees have pleaded guilty in the case.
A total of ten people were charged into an indictment of June 2024.
“The accused admitted that they had collusion with corrupt health care providers in a fraud plan to defraud the Amtrak health care plan for a personal financial gain,” American lawyer Alina Habba said in a statement.
Kevin Frink, 53, of Willingboro, New Jersey, is the most recent to plead guilty before the American district judge Madeline Cox Arleo in Newark.
He joined Michael Toal, 35, from Hazlet; David McBrien, 37, from Levittown, Pennsylvania; Daman Walker, 41, from Irvington; And David Lonergan, 65, from Rockaway Park, New York, who also admitted the guilt of the same charge.
Each defendant risks up to 10 years in prison and a fine of $ 250,000, twice the gross gain or the loss of the offense.
The conviction is expected later this year.
David McBrien’s lawyer Michael V. Calabro, described the case as a tragic tour for a man who had previously led a life respectful of laws and workers.
“It was attempted by the attraction of easy money, and as it is so often the case, the easy way has turned into the road to the hard way,” said Calabro.
“What happened here is completely out of character for Mr. Toal. He made an intelligent decision to put an end to this affair and move on,” said Toal’s lawyer Michael Chazen in a statement.
Lawyers representing the other defendants who pleaded guilty did not immediately respond to requests for comments.
According to court documents, the employees conspired with Panson Figueroa, an acupuncturist, and Michael Denicola, a podiatrist, who had already pleaded guilty to related charges.
Figueroa, who said the prosecutors said it was the “brain” behind the program, was sentenced in September 2024 to 34 months in prison. Denicola pleaded guilty in June 2022 and awaited a conviction.
Four other employees responsible for Amtrak have not yet had a pleading.
These are: Quinton Johnson, 53, of Irvington; Gregory Richardson, 35, from Roosevelt, New York; Timothy Bogen, 59, from Hamden, Connecticut; And Dion Jacob, 50, from Brooklyn.
The investigation was conducted by the Inspector General Amtrak office, the Amtrak police service and the Drug Encompement Administration.