Bribery of an Amtrak manager: Corrupt Dealings in 30th Street Station Project

A former executive has admitted involvement in a bribery scheme related to Amtrak’s 30th Street Station restoration. He conspired to secure millions in additional work through luxury gifts and lavish perks. This was reported by the railway transport news portal Railway Supply.

Source: The Philadelphia Inquirer

Bribery Scheme Involving Amtrak Manager

In January 2017, two construction executives dined with an Amtrak project manager at an upscale restaurant. They gifted him a $5,631 Tourneau watch as part of their illicit dealings.

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Shortly after, Amtrak approved additional funding for the project, benefiting the conspirators. A text message between them confirmed that their investment had quickly paid off.

Last week, Donald Seefeldt, a former Mark 1 Restoration executive, pleaded guilty in federal court. He admitted to participating in a scheme that involved $323,686 in bribes.

Prosecutors detailed an array of extravagant gifts used to secure project approvals. These included luxury vacations, limousine rentals, and another expensive $11,294 watch.

A German shepherd puppy, professional dog training, and concert tickets were also among the bribes. Investigators discovered the details through an FBI affidavit revealed in 2021.

Seefeldt, aged 65, now faces significant legal consequences, including a potential five-year prison sentence. A substantial fine and restitution may also be imposed by the court.

Other Mark 1 executives, including Lee Maniatis and Khaled Dallo, have also admitted guilt. Their sentencing dates are set for later this year in federal court.

Fraudulent Costs in Amtrak Project

The 30th Street Station project initially received 90% of its funding from federal sources. However, the bribery scheme inflated costs, adding millions to the total budget.

Prosecutors revealed that Bhaskaran approved $52 million in additional work for the project. This nearly doubled the original budget and led to fraudulent overcharges.

In addition to approving extra work, conspirators manipulated project costs for personal gain. Amtrak was ultimately overbilled by at least $2 million due to false expenses.

Officials emphasized the impact of fraud on taxpayers and public projects. Each stolen dollar represents funding diverted from legitimate infrastructure improvements.

U.S. Attorney Jacqueline Romero vowed to hold corrupt individuals accountable. She stated that fraudulent schemes would continue to face rigorous legal action.

Seefeldt’s attorney, Sergio Acosta, declined to provide any comments on the case. Legal representatives for other defendants have remained silent regarding the charges.

Before his involvement was exposed, Bhaskaran defended Amtrak’s expanded project scope. He publicly claimed it was a rare opportunity for extensive restorations.

However, Bhaskaran was later charged in an unrelated fraud case in 2019. Following his arrest, he confessed to accepting bribes from contractors.

Bhaskaran passed away in October 2020 before facing further legal consequences. His role in the scheme was exposed through investigative efforts by authorities.

Source: The Philadelphia Inquirer

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