Amtrak healthcare fraud brings prison term for therapist

Amtrak healthcare fraud involving employee healthcare plans has led to a federal prison sentence. The sentence applies to New Jersey physical therapist Taejin Kim. A U.S. District Court judge issued it Thursday. This is reported by the railway transport news portal Railway Supply.

Kim, 44, pleaded guilty on June 11, 2025, to conspiracy to commit healthcare fraud. The sentence came nearly a year later. Judge Madeline Cox Arleo issued it in Newark. Kim must serve 12 months and one day in federal prison.

After her release, Kim will also be subject to two years of probation. In addition, she was ordered to pay $2.2 million in restitution.

The U.S. Department of Justice said Kim and other participants intentionally billed Amtrak’s healthcare plan. It said the claims involved services that were not provided. In many cases, the services were not medically necessary.

How the Amtrak healthcare fraud scheme worked?

Prosecutors said in court that Kim allowed her physical therapy license to be used. They also said her business bank accounts were used in the wider fraudulent billing operation. She received kickbacks in return.

Also, the conspiracy involved recruiting other people, most of them Amtrak employees. They received cash payments. In return, their insurance information could be used for reimbursement claims. Those claims covered physical therapy and other services they did not actually require.

According to the DOJ, dozens of Amtrak employees were implicated in the case. In addition, multiple healthcare providers were named as co-conspirators. Cash kickbacks paid to employees alone totaled hundreds of thousands of dollars.

Across the scheme, prosecutors alleged more than $11 million in fraudulent claims. The claims were submitted by providers, including Kim. The Amtrak health plan paid more than $2.2 million. Those false medical bills were linked to Kim’s role.

Court statements placed the scheme between October 2019 and June 2022.

All defendants have pleaded guilty

The DOJ said nineteen people have been prosecuted in connection with the Amtrak overbilling conspiracy. Every defendant has pleaded guilty.

Separately, the investigation and prosecutions involved the Amtrak Office of Inspector General. Also, the Amtrak Police Department and the Drug Enforcement Administration contributed.

Amtrak is a public passenger train service. It operates across the United States and in parts of Canada.

In January, the DOJ said 12 people had been brought to justice at that point. Six cases were still pending then. By now, all defendants have entered guilty pleas. They have either received sentences or are waiting for hearings.

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