NEWARK, N.J. – Devon Burt, 50, of Blue Bell, Pennsylvania, and Hallum Gelzer, 44, of Enola, Pennsylvania, each pleaded guilty before U.S. District Judge Madeline C. Arleo in Newark federal court to separate informations charging them with conspiracy to commit health care fraud and conspiracy to communicate extortionate threats.
According to documents filed in this case and statements made in court, Burt, a former Amtrak employee, and Gelzer worked with health care providers to recruit Amtrak employees to participate in a health care fraud scheme through the offer of cash payments in exchange for the employees allowing health care providers to use their patient and insurance information to submit false claims.
The health care providers benefitted from the scheme by receiving payments from the Amtrak health care plan for services that were never provided or that were medically unnecessary. Burt received cash payments from providers in return for allowing the providers to use his personal and insurance information, and that of his dependents, to submit fraudulent claims. Both Burt and Gelzer received cash payments from providers in return for recruiting others to participate in the scheme.
From April 2022 through June 2022, Burt and Gelzer conspired to communicate extortionate threats to a health care provider who participated in the scheme. Burt and Gelzer threatened the provider with harm if they did not continue to participate in the scheme.
The charges announced today by U.S. Attorney Philip R. Sellinger are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 90 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.6 billion in alleged false billings.
The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles and yachts.
Defendant: Devon Burt, 50, of Blue Bell, Pennsylvania
Criminal Charges: Conspiracy to commit health care fraud and conspiracy to communicate extortionate threats
City and State: Newark, New Jersey
Exact Date: April 2022 through June 2022
Sentence or Outcome: Pleaded guilty in U.S. District Court
Dollar Amounts: $2.6 billion in alleged false billings
Related Federal Cases
- Muhammad Mirza, Amtrak Health Care Scam, New Jersey 2024 · California
- Marina Sakson and Larry Sakson, Health Care Fraud, Pennsylvania 2022 · Maryland
- Edward Evans, Health Care Fraud, Pennsylvania 2024 · Virginia
- Christopher Glynn, Wire Fraud and Money Laundering, New Jersey 2024 · Connecticut
- Mario E Rivero Jr, Wire Fraud Securities Fraud, New Jersey 2023 · Pennsylvania
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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