⏱ 2 min read
A New York physical therapist, Jaekwan Lee, participated in a health care fraud scheme that targeted Amtrak employees in New Jersey. The scheme, which lasted from January 2022 to June 2022, involved billing the Amtrak health care plan for services that were never provided and were medically unnecessary. Lee, 41, of Flushing, New York, pleaded guilty to conspiracy to commit health care fraud in Newark federal court.
The conspiracy involved dozens of Amtrak employees and multiple health care providers, who paid hundreds of thousands of dollars in cash kickbacks to Amtrak employees. The Amtrak health care plan paid out over $11 million in fraudulent claims associated with providers connected to the scheme, with over $800,000 of that attributed to Lee’s actions.
Lee allowed his license and business bank accounts to be used in the fraudulent billing scheme in exchange for a portion of the proceeds. Other members of the conspiracy recruited Amtrak employees to participate by paying them cash in return for their personal and insurance information.
The investigation has resulted in the prosecution of 19 individuals, including Lee, all of whom have pleaded guilty to conspiracy to commit health care fraud. Lee faces a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for October 8, 2026.
Related Federal Cases
- Steven M. Butcher, Health Care Fraud and Anti-Kickback Statute Violation, New York 2014 · Pennsylvania
- Lissette Delarosa, Mail Fraud Conspiracy, New Jersey 2010 · Florida
- Vincent P. Falci, Wire Fraud, Securities Fraud, New Jersey 2024 · Pennsylvania
- John Rizzitello, Time Card Fraud, New Jersey 2016 · Maryland
- Derrell Lee, Identity Theft and Bank Fraud, Vermont 2015 · Georgia
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: New Jersey
- Location: NJ
- Source: DOJ Press Release
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