Federal prosecutors say that a group of Amtrak employees conspired with corrupt health care providers to defraud the company’s employee health plan of more than $11 million.
The scheme, which ran from January 2019 through June 2022, involved employees allowing providers to use their personal and insurance information to submit false claims for treatments that were never provided or were medically unnecessary.
In return, the employees received thousands of dollars in cash kickbacks.
So far, five Amtrak employees have pleaded guilty in the case.
A total of ten people were charged in a June 2024 indictment.
“The defendants admitted to colluding with corrupt health care providers in a scheme to defraud Amtrak’s health care plan for personal financial gain,” U.S. Attorney Alina Habba said in a statement.
Kevin Frink, 53, of Willingboro, New Jersey, is the most recent to plead guilty before U.S. District Judge Madeline Cox Arleo in Newark.
He joins Michael Toal, 35, of Hazlet; David McBrien, 37, of Levittown, Pennsylvania; Damany Walker, 41, of Irvington; and David Lonergan, 65, of Rockaway Park, New York, who also admitted guilt to the same charge.
Each defendant faces up to 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.
Sentencing is expected later this year.
David McBrien’s attorney, Michael V. Calabro, described the case as a tragic turn for a man who had previously led a law-abiding and hardworking life.
“He was tempted by the lure of easy money, and as is so often the case, the easy way turned into the hard way,” Calabro said.
“What happened here is totally out of character for Mr. Toal. He made a smart decision to end this case and move on with his life,” Toal’s attorney, Michael Chazen said in a statement.
Attorneys representing the other defendants who pleaded guilty did not immediately respond to requests for comment.
According to court documents, the employees conspired with Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist, both of whom previously pleaded guilty to related charges.
Figueroa, who prosecutors have said was the “mastermind” behind the scheme, was sentenced in September 2024 to 34 months in prison. DeNicola pleaded guilty in June 2022 and is awaiting sentencing.
Four other charged Amtrak employees have not yet entered pleas.
They are: Quinton Johnson, 53, of Irvington; Gregory Richardson, 35, of Roosevelt, New York; Timothy Bogen, 59, of Hamden, Connecticut; and Dion Jacob, 50, of Brooklyn.
The investigation was led by the Amtrak Office of Inspector General, the Amtrak Police Department, and the Drug Enforcement Administration.
