Amtrak OIG agents support DOJ’s nationwide $14.6 billion Health Care Fraud Takedown

July 8, 2025

WASHINGTON – Agents from the Amtrak Office of Inspector General supported the U.S. Department of Justice’s National Health Care Fraud Takedown, announced June 30, 2025, with the arrest of the CEO of a San Diego substance abuse treatment facility and, in a separate case, charges against a New Jersey physical therapist—both charged for their alleged participation in schemes that bilked Amtrak’s health care plan.

The DOJ-led operation, the largest in its history, spanned 50 federal districts, 12 State Attorneys General’s Offices, and resulted in criminal charges against 324 defendants including 96 doctors and other licensed medical professionals for allegedly participating in health care fraud schemes involving more than $14.6 billion in intended loss, according to a press release from the DOJ.

As part of the nationwide effort, Amtrak OIG supported an investigation that resulted in charges against Daniel Simons, 44, of San Diego, California. Simons was charged for allegedly paying kickbacks to so-called “body brokers” to refer patients to substance use disorder treatment facilities owned by La Jolla Recovery, Inc. Simons, the CEO of La Jolla Recovery, Inc., allegedly paid and offered to pay body brokers for patient referrals while hiding the illegal payments as “marketing services.” The case is being prosecuted by Assistant U.S. Attorney George Manahan of the U.S. Attorney’s Office for the Southern District of California.

Amtrak OIG also investigated Taejin Kim, 43, of River Vale, New Jersey. Kim was charged by information with conspiracy to commit health care fraud for allegedly submitting fraudulent claims to Amtrak’s health care plan for services that were never provided or were medically unnecessary. Kim, a licensed physical therapist, allegedly participated in a conspiracy to use Amtrak employees’ insurance information to submit these false and fraudulent claims. Amtrak paid approximately $2,253,453 on these claims. The case is being prosecuted by Assistant U.S. Attorneys Jessica R. Ecker and Katherine M. Romano of the U.S. Attorney’s Office for the District of New Jersey.

More information about the Health Care Fraud Takedown is available in the DOJ press release: https://direc.to/nUYH.

Reports of fraud, waste, or abuse; criminal or unethical acts affecting Amtrak’s property or operations; or mismanagement in Amtrak programs or operations can be made 24 hours a day via the Amtrak OIG Hotline at 1-800-468-5469 or online at https://direc.to/hPAu.

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