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Concealed Republican > Blog > News > 119 Amtrak workers loot $12M in record-breaking fraud heist — many keep taxpayer-funded gig: Report
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119 Amtrak workers loot $12M in record-breaking fraud heist — many keep taxpayer-funded gig: Report

Jim Taft
Last updated: May 9, 2025 7:15 pm
By Jim Taft 11 Min Read
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119 Amtrak workers loot M in record-breaking fraud heist — many keep taxpayer-funded gig: Report
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The Amtrak Office of Inspector General released the findings of a bombshell investigation on Wednesday, revealing “the largest employee conspiracy our office has ever investigated.”

According to the OIG, at least 119 Amtrak employees participated in “a widespread scheme,” conspiring with New York health care providers to defraud the company’s health care plan out of over $12 million.

‘The sheer volume of employees who cavalierly participated in this scheme to steal Amtrak’s funds suggests not only a serious lapse in basic ethics, but a troubling workforce culture, at least in the Northeast region, in which blatant criminal behavior was somehow normalized.’

The investigation stated that the fraud occurred between 2019 and 2022 and involved 28 now retired or resigned workers. Another 30 employees departed from Amtrak for “other reasons.”

However, the majority of the 119 alleged crooked workers are reportedly still with Amtrak, a company that has never turned a profit since its creation in 1971 and leans on taxpayer funds to cover its losses.

The office said, “The OIG’s findings on 61 remaining active employees were given to Amtrak for consideration of appropriate administrative disciplinary action.”

“A dozen employees have been criminally charged in the case, and seven have pleaded guilty, pending sentencing,” the OIG stated.

Amtrak Inspector General Kevin Winters noted that he hopes the investigation will serve as a deterrent for other employees and health care providers.

“The sheer volume of employees who cavalierly participated in this scheme to steal Amtrak’s funds suggests not only a serious lapse in basic ethics, but a troubling workforce culture, at least in the Northeast region, in which blatant criminal behavior was somehow normalized,” Winters remarked.

The OIG launched the investigation after an agent observed “unusual billing patterns.” Upon further review, the office discovered that three New York-based providers with a high number of Amtrak employees as patients had submitted “questionable billings.”

The employees reportedly “accepted cash kickbacks from three health care providers in exchange for the use of their insurance information, and in some cases, that of their dependents.”

“The providers used the employee-provided information to file fraudulent and questionable medical claims for services that were never provided or not medically necessary. In total, Amtrak’s health care plan was billed over $16 million and paid out more than $12 million during the scheme,” the OIG reported.

Amtrak told Fox News Digital it has taken “significant steps” to address the fraud.

“Like many employers, Amtrak calls on medical benefit providers and insurers to do more to identify suspicious activity and stop medical insurance fraud,” the company stated. “Amtrak strongly condemns this reprehensible act that occurred between 2019 and 2022 and is taking swift action with all active employees involved in the investigation.”

“While we continue to work closely with the OIG to identify and stamp out fraud, we also continue to work on other initiatives to address this issue,” the statement continued. “Amtrak has implemented various measures to enhance fraud prevention and empower employees to report suspected wrongdoing. These efforts include increasing oversight and strengthening efforts to eliminate fraudulent schemes.”

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