Amtrak has been hit by a massive payroll fraud scheme, with $12 million siphoned away through fraudulent medical claims. The scandal involves 119 employees and a network of corrupt doctors who orchestrated the scam, yet more than half of those implicated remain on the company’s payroll. The revelations have sparked outrage, raising serious concerns about oversight and accountability within the taxpayer-funded rail service.
The fraud was simple but effective. Employees handed over their insurance details to crooked medical providers, who then filed bogus claims for treatments that never happened. In exchange, workers received cash kickbacks, turning the scheme into a widespread operation that ran unchecked for years. Some employees even submitted their children’s insurance information, expanding the fraud beyond their own benefits.
The Office of the Inspector General uncovered the scheme after noticing unusual billing patterns. Investigators found that three New York-based healthcare providers had an abnormally high number of Amtrak employees as patients, raising red flags. Undercover agents posing as Amtrak workers confirmed the fraud, exposing a system where employees signed off on fake treatments in exchange for payouts.
Despite the scale of the scandal, accountability has been minimal. Only a dozen employees face criminal charges, with seven already pleading guilty. Another 28 resigned or retired, while 30 left for unspecified reasons. That leaves 61 employees still working at Amtrak, despite their involvement in the fraud. The company insists it is taking action, but critics argue that the response has been far too lenient.
The financial impact is significant. Amtrak, which relies heavily on federal funding, has now lost millions to fraud while continuing to employ those responsible. The scandal raises broader concerns about systemic corruption and weak oversight within government-backed organizations.
SOURCES:
https://railroad.net/119-employees-scam-amtrak-out-of-12m-via-health-care-fraud-t178095.html
https://www.yahoo.com/news/amtrak-taken-ride-wild-12m-193215305.html
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