Conspiracy to defraud Amtrak’s health plan of $11M sees 12 convictions
Four employees of Amtrak, the quasi-public company that offers passenger travel by train nationwide, have admitted to participating in an $11 million healthcare fraud scheme, the U.S. Department of Justice (DOJ) announced on Thursday
Timothy Bogen, 60, of Connecticut was the latest to plead guilty to conspiracy to commit healthcare fraud, making his conviction official on Wednesday. He joins Quinton Johnson, 54, from New Jersey; along with Gregory Richardson, 36, and Dion Jacob, 51, both from New York, who previously submitted guilty pleas for their roles in the same scheme.
The DOJ alleges that from January 2019 through June 2022, the lot—all employees of Amtrak—collected kickbacks from their providers, who went on to bill their health insurance for services that were never delivered or not medically necessary.
Each of the defendants received “thousands of dollars in cash” during the duration of the conspiracy, the DOJ alleges. Amtrak’s health insurance plan ended up paying out over $11 million in fraudulent claims stemming from the incidents.
Prosecutors said Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist, were already indicted for their role in providing kickbacks and filing bogus documents for reimbursement. Both pleaded guilty, authorities added.
Figueroa is currently serving a 34 month prison sentence, and DeNicola is awaiting a hearing to decide his fate.
Three of the four former Amtrak employees also now await sentencing. The convictions of healthcare fraud conspiracy carry a potential of 10 years behind bars and a fine of up to $250,000. The DOJ said court dates for Bogen, Jacob and Johnson have already been scheduled.
Richardson was previously sentenced to two years of federal probation.
Six others charged
As part of the same investigation and criminal indictment, the DOJ has charged six other individuals as co-conspirators. They include Kevin Frink, 54, Damany Walker, 42, and Michael Toal, 35, all from New Jersey; David McBrien, 37, of Pennsylvania; David Lonergan, 65, of New York; and Rodolfo Rivera, 42, from Delaware.
All have pleaded guilty to the charge of conspiracy to commit healthcare fraud. McBrien, Walker and Frink have already been sentenced, receiving two years each of federal probation.
The DOJ said multiple agencies worked to investigate the fraud and effect arrests, including the Amtrak Office of Inspector General, the Amtrak Police Department and the Drug Enforcement Administration.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.