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New York Physical Therapist Pleads Guilty to Healthcare Fraud Scheme
A New York physical therapist has pleaded guilty to participating in a healthcare fraud scheme targeting Amtrak, admitting to conspiracy to commit healthcare fraud. Jaekwan Lee, 41, of Flushing, New York, pleaded guilty today before U.S. District Judge Madeline Cox Arleo in Newark federal court to an Indictment charging him with conspiracy to commit healthcare fraud.
According to documents filed in this case and statements made in court: From January 2022 through June 2022, Lee and his co-conspirators agreed to engage in a scheme to bill the Amtrak healthcare plan for fraudulent claims for services that never were provided and were medically unnecessary. Lee, a licensed physical therapist, allowed his license and business bank accounts to be used in the fraudulent billing scheme, in return for a portion of the proceeds.
The conspiracy involved dozens of Amtrak employees and multiple healthcare providers, who paid hundreds of thousands of dollars in cash kickbacks to Amtrak employees over the course of the scheme. In total, the Amtrak healthcare plan paid over $11 million in fraudulent claims associated with providers connected to the scheme. The Amtrak healthcare plan paid out over $800,000 for claims associated with Lee.
The health care fraud conspiracy charge carries 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.
U.S. Attorney Robert Frazer credited special agents of the Amtrak Office of Inspector General, the Amtrak Police Department, and special agents of the Drug Enforcement Administration with the investigation leading to today’s guilty plea. The government is represented by Assistant U.S. Attorney Katherine M. Romano and Assistant U.S. Attorney Kathleen O’Leary.
Jaekwan Lee, a 41-year-old physical therapist from Flushing, New York, is scheduled to be sentenced on October 8, 2026. Lee pleaded guilty to conspiracy to commit healthcare fraud, a charge that carries 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.
The New Jersey U.S. Attorney’s Office announced today that Lee was prosecuted as part of a larger investigation into a healthcare fraud scheme targeting Amtrak. The scheme involved dozens of Amtrak employees and multiple healthcare providers, who paid hundreds of thousands of dollars in cash kickbacks to Amtrak employees over the course of the scheme.
According to the indictment, Lee and his co-conspirators agreed to engage in a scheme to bill the Amtrak healthcare plan for fraudulent claims for services that never were provided and were medically unnecessary. Lee, a licensed physical therapist, allowed his license and business bank accounts to be used in the fraudulent billing scheme, in return for a portion of the proceeds.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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