By: Richard L. Smith
A former Amtrak employee from Pennsylvania will spend nearly two years in federal prison after admitting to participating in a multimillion-dollar health insurance fraud operation and conspiring to threaten a medical provider involved in the scheme.
According to information released by the U.S. Department of Justice, Devon Burt, 53, of Blue Bell, Pennsylvania, was sentenced to 20 months in federal prison for his involvement in a fraudulent billing operation targeting Amtrak’s employee health care plan.
U.S. District Judge Madeline Cox Arleo imposed the sentence in Newark federal court, also ordering Burt to serve two years of supervised release and pay $959,072 in restitution.
Federal prosecutors said Burt helped recruit fellow Amtrak employees into an arrangement in which medical providers offered cash payments in exchange for access to employees’ personal and insurance information.
The information was then used to submit fraudulent insurance claims for medical procedures and services that were either unnecessary or never performed.
Investigators determined that Burt personally received payments for allowing participating providers to submit false claims using his insurance information and that of his dependents.
He also collected additional money for encouraging other Amtrak employees to participate in the operation.
Authorities said the fraudulent claims connected to Burt resulted in approximately $959,072 in payments from Amtrak’s health care plan.
The investigation also uncovered a separate conspiracy involving threats against one of the medical providers participating in the fraud.
Between April and June 2022, Burt and another individual allegedly used interstate telephone calls and text messages to threaten the provider with physical harm unless several thousand dollars were paid to Burt’s accomplice.
Burt subsequently pleaded guilty on June 27, 2023, to conspiracy to commit health care fraud and conspiracy to communicate extortionate threats.
Federal officials said the broader investigation exposed an extensive fraudulent billing network involving dozens of Amtrak employees and multiple health care providers.
According to prosecutors, participating medical professionals distributed hundreds of thousands of dollars in cash payments to employees who supplied insurance information or helped recruit additional participants.
The operation ultimately resulted in more than $11 million in fraudulent payments from Amtrak’s employee health care plan.
Authorities said 19 individuals, including Burt, have been prosecuted in connection with the investigation, and all have pleaded guilty to conspiracy to commit health care fraud.