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  • Feds charge 4 people in a multimillion-dollar Amtrak health insurance scam
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Feds charge 4 people in a multimillion-dollar Amtrak health insurance scam

June 28, 20223 min read Angie K. Claar

4 persons had been arrested Thursday on costs they participated in a multimillion-greenback rip-off to defraud Amtrak by bribing workforce of the rail agency to submit bogus statements to the Amtrak health and fitness insurance policy strategy, authorities reported.

Muhammad Mirza, 50, of Cedar Grove, Devon Burt, 49, of Blue Bell, Pennsylvania, and Hallum Gelzer, 43, of East Orange, were being billed with conspiracy to dedicate health and fitness care fraud, in accordance to U.S. Legal professional for New Jersey Philip R. Sellinger. Courtroom papers identified Mirza as a medical professional with places of work in New Jersey and New York and record Burt as an Amtrak staff.

An acupuncturist, Punson Figueroa, 55, of Extended Island Metropolis, New York, was charged with 15 counts of wellbeing treatment fraud in the scheme, according to courtroom documents.

The four allegedly recruited Amtrak personnel from New Jersey and New York to allow Mirza, Figueroa, and other folks to use their professional medical and insurance information and facts to post false claims.

“Mirza, Figueroa, and other people benefitted from this scheme by acquiring payments from the Amtrak health and fitness treatment prepare for solutions that have been under no circumstances provided or that were medically unneeded,” the U.S. Attorney’s Business explained in a statement.

In the meantime, Gelzer and Burt obtained hard cash in return for letting the health and fitness care vendors to use their data to submit fraudulent promises and for recruiting other individuals to the rip-off, in accordance to paperwork submitted in the situation.

An undercover investigator posing as an Amtrak staff met with Figueroa at his New York workplace on June 17, 2021, authorities said. Figueroa experienced the undercover agent indicator his title about 30 moments for acupuncture and actual physical treatment purportedly obtained, but not to date the paperwork.

“Figueroa mentioned to the undercover agent that the undercover agent experienced superior coverage, and that Amtrak has pretty good added benefits,” the statement claimed. “Figueroa submitted or prompted to be submitted bogus claims to Amtrak’s wellness care program indicating that the undercover agent had frequented vendors at least seven instances in May well 2021, purportedly getting acupuncture and physical remedy solutions.”

In truth, prosecutors mentioned the undercover agent only frequented Figueroa’s office one other time, on July 29, 2021. Throughout the meeting, which was recorded with audio and video clip, Figueroa gave the undercover investigator an envelope filled with $1,000, courtroom papers stated.

Figueroa applied the undercover agent’s private and insurance details to post bogus claims to Amtrak’s health and fitness plan above 73 situations, primary the plan to shell out $31,840, in accordance to the paperwork.

Authorities mentioned the Amtrak health treatment plan compensated at least $9 million from promises linked to companies linked to the fraud.

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Noah Cohen could be arrived at at [email protected].

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