TIME AND ATTENDANCE FRAUD
We initiated an investigation involving an Amtrak (the company) supervisor after our separate audit of employee payroll and overtime hours revealed that the supervisor had unusually high claims of overtime hours. We found that the supervisor fraudulently claimed 41 regular hours and 685.75 overtime hours, resulting in a loss of more than $71,000 for the company. The supervisor was arrested in July 2016 and charged with theft of government property. On February 15, 2017, the supervisor pleaded guilty in the U.S. District Court for the District of New Jersey and was sentenced on June 8, 2017 to 24 months of probation and 6 months of home confinement. In addition, the supervisor was ordered to pay the company $71,946 in restitution. The supervisor retired in August 2016.
We also investigated two of the supervisor’s subordinates for time and attendance fraud. One employee was terminated in January 2017 as a result of an administrative hearing, and the other employee resigned in April 2017 prior to the hearing.