Want to make millions in fake insurance payouts and keep your job? Just hop on board the Amtrak payroll — apparently, they punch tickets and turn blind eyes.
In this publication, we're uncovering one of the boldest, most shameless frauds involving a taxpayer-funded organization. This isn’t a movie plot — it's real, and it's still unfolding.
At least 119 Amtrak employees helped defraud $12 million through fake medical claims — and more than half still work there.
How It Works:
Between 2019 and 2022, a crew of Amtrak employees teamed up with shady health providers in a three-year con. Here's how the scheme played out:
- Fake treatment reports were signed off by complicit doctors.
- Bogus insurance claims were filed using Amtrak’s insurance provider.
- The payouts went to the providers, who then kicked back a share to the employees.
- If a provider hesitated? Some employees allegedly threatened them — like a page out of a mobster’s playbook.
Two ringleaders — Devon Burt and Hallum Gelzer — have pleaded guilty, but the cast of characters is much larger.
Who’s Targeted:
While the scam was internal, you — the taxpayer — are the ultimate victim. This involved public funds, meaning your hard-earned dollars were quietly siphoned into a fraudulent operation orchestrated by government employees.
And while 12 employees face criminal charges, 61 of them are still on Amtrak’s payroll — getting paid by you.
Real-Life Example:
According to Amtrak’s Office of the Inspector General, this scheme went undetected for years. Despite two guilty pleas and an active investigation that began in 2021, Amtrak only recently began taking disciplinary action.
“Amtrak is taking swift action,” a spokesperson claimed — four years after the scheme began.
Why You Should Care:
Beyond the $12 million price tag, the true cost is trust.
This scam shows how easily public systems can be exploited — and how slowly some agencies react. It’s not just Amtrak; it’s a warning to every taxpayer-funded organization with loose oversight. If fraud like this can fester for years at Amtrak, where else is it happening?
And if over 50% of known perpetrators remain on the job… what message does that send?
Actionable Steps:
While you may not work for Amtrak, this kind of fraud can happen anywhere. Here’s how to protect yourself and your organization:
- Audit employee benefits regularly — especially healthcare claims.
- Encourage whistleblowing with anonymous reporting tools and real follow-through.
- Work with insurers to flag patterns of suspicious billing or repeated claims from the same providers.
- Demand transparency from any organization funded with public money.
- Stay informed by following your local Office of the Inspector General’s reports.
Quick Tips:
Did you know? Healthcare fraud costs the U.S. tens of billions every year — and much of it is never prosecuted.
Pro Tip: If your employer provides insurance, keep an eye on your EOB (Explanation of Benefits). Fraudsters sometimes file claims under your name without your knowledge.
Stay safe, stay informed.
Keyword Definitions:
- Insurance Fraud – Illegally claiming or inflating insurance payouts.
- Kickback – A return of part of a sum received, often as a result of coercion or secret agreement.
- Inspector General (IG) – An independent official tasked with identifying waste, fraud, and abuse in government agencies.
- Public Funds – Money generated by the government (via taxes) used to operate services or institutions.
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