NEWARK, N.J. — A New York physical therapist has pleaded guilty to conspiracy to commit health care fraud, the latest development in a long-running case involving Amtrak health insurance.
Jaekwan Lee, 41, of Flushing, N.Y., entered the guilty plea on Tuesday, May 12, before U.S. District Judge Madeline Cox Arleo in Newark federal court. The charge carries a maximum 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 Oct. 8.
According to the U.S. Attorney’s Office for the District of New Jersey, between January and June 2022, Lee and other participants in the conspiracy billed the Amtrak health care plan for fraudulent claims for services that were unnecessary and were never provided. Lee allowed his license and business bank accounts to be used as part of the scheme in return for a portion of the proceeds; others involved in the scheme recruited Amtrak employees by paying them cash in return for allowing the conspirators to use their personal and insurance information to submit false claims…