Corruption Scandals at Amtrak: Multi-Million Dollar Schemes, Kickbacks, and Oversight Failures

In 2024, the Amtrak Office of Inspector General (OIG) released a report detailing a massive health insurance fraud scheme involving over 119 employees. This is reported by the railway transport news portal Railway Supply.

These employees, primarily from the Northeast, collaborated with fraudulent medical providers to submit false claims for services never rendered, resulting in over $12 million in losses.

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Despite the severity of the fraud, more than half of the implicated employees remain employed at Amtrak, raising concerns about the company’s internal controls and accountability measures.

Bribery and Bid-Rigging in Amtrak’s IT Department

Richard Thompson, former Director of Network Planning and Engineering at Amtrak, was indicted for engaging in bribery schemes with favored vendors between 2015 and 2021. He allegedly provided confidential bidding information to these vendors in exchange for cash, electronics, and other benefits, compromising the integrity of Amtrak’s procurement process. 

Kickbacks in the 30th Street Station Renovation Project

A corruption case emerged during the renovation of Philadelphia’s 30th Street Station, where former Amtrak manager Ajith Bhaskaran accepted over $320,000 in bribes from contractors. In return, he approved inflated invoices and unauthorized work, causing the project’s cost to escalate from $58 million to over $109 million.

Consequences and Calls for Reform

Following these scandals, Amtrak pledged to implement stricter oversight mechanisms and enhance compliance training. However, experts argue that without transparent enforcement and firm disciplinary action, internal corruption may persist. As a federally subsidized corporation, Amtrak is expected to uphold the highest standards of ethics and public accountability.

Sources:

• Amtrak Office of Inspector General (OIG): amtrakoig.gov
• U.S. Department of Justice: justice.gov
• Axios News: axios.com
• New York Post: nypost.com

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