Update In $11M Scheme To Defraud Amtrack Involving Hazlet Man: Feds

HAZLET, NJ — New developments have been released in connection with a 2024 case where a Hazlet man was charged in connection with a health care scheme that defrauded Amtrak of $11,000,000, Acting US Attorney Vikas Khanna said.

Michael Toal, 35, of Hazlet, was charged alongside eight other co-conspirators and the leader of the operation, Rodolfo Rivera, 41, of Clayton, Delaware, Khanna said.

Rivera recently pleaded guilty to conspiracy to commit health care fraud in Newark federal court, authorities said.

According to court documents and statements, Rivera and his co-conspirators (who were also Amtrak employees) engaged in a scheme from January 2019 to June 2022 to obtain cash kickbacks from healthcare providers in return for their agreement to let their health insurance plan be billed for services that were never provided and were not medically necessary.

As a result of the fraudulent claims submitted on behalf of Rivera, his dependent, and other Amtrak employees he recruited, Khanna said the Amtrak health care plan paid over $2 million in reimbursements.

Overall, the Amtrak health care plan paid over $11 million in fraudulent claims associated with providers connected to the scheme, authorities said.

For his participation in the scheme, Rivera received thousands of dollars in cash kickbacks from healthcare providers, including from Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist, authorities said.

Figueroa previously pleaded guilty to conspiracy to commit healthcare fraud and was sentenced to 34 months in prison on Sept. 24, 2024, authorities said.

DeNicola pleaded guilty to conspiracy to commit health care fraud, among other offenses, on June 29, 2022, authorities said. His sentencing remains pending.

The healthcare fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, Khanna said. Rivera's sentencing is scheduled for June 26, 2025.

Alongside Toal and Rivera, eight other co-conspirators were charged in connection with the scheme, authorities said, including: Kevin Frink, 53, of Willingboro; Quinton Johnson, 53, of Irvington; David McBrien, 36, of Levittown, PA; Gregory Richardson, 35, of Roosevelt, NY; Damany Walker, 41, of Irvington; Timothy Bogen, 59, of Hamden, CT; Dion Jacob, 50, of Brooklyn, NY; and David Lonergan, 64, of Rockaway Park, NY.