Amtrak has been ensnared in a federal corruption investigation now that the rail service’s former top executive was charged, along with two contractors, in a bribery scheme that stretched over years and involved $146,500 of kickbacks. This is reported by the railway transport news portal Railway Supply.

Amtrak has become the center of a federal corruption case after its former senior executive was indicted alongside two vendors for participating in a $146,500 bribery scheme over several years

Richard Thompson, Amtrak’s former Director of Network Planning and Engineering, was charged with rigging lucrative contracts to preferred suppliers. Shaun Hanrahan and Darren Hannam, directors at IT companies involved in the fraud, are included in the indictment.

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Thompson is accused to have leveraged non-public information to supply confidential bid documents to some companies. In exchange, he agreed to receive sizable payments and expensive consumer electronics. This behavior sidestepped the national passenger rail service’s established process for procurement.

Amtrak Projects for Sale: Vendors Whisked Elected OfficiaLs to Dinner, Offered Seats on Corporate Planes and Occasionally Just Handed Over Cash and Gifts

Prosecutors say Hanrahan paid at least $97,000 in cash to Thompson. Hannam and a co-conspirator provided him with Apple electronics worth about $9,500. Another company gave him $40,000 in cash, a car and rent-free housing in Maryland.

Projects included Amtrak’s nationwide Wi-fi systems, audio-visual installations, and acquisition of IT hardware. The upgrade of gate access systems was another major piece of the fraudulent transactions.

Defendants sought to evade detection by Amtrak, using private emails to obscure their communications. And one even tried to erase records after the FBI served search warrants.

Long-Term Fraud Scheme By Former Amtrak Employee Exposed By FBI and Amtrak Investigators

Federal agents and Amtrak’s Office of Inspector General led the investigation. Prosecutors say the fraud went on from 2015 to 2021 and took advantage of Amtrak’s trust and public financing.

Each defendant faces up to 20 years in prison for each count of honest services wire fraud. Hannam is also charged with a count of making false statements following the FBI raid.

The case illustrates continued problems with federal contracting oversight. The filing of an accusation is merely a formal charging document and not evidence of guilt.

Source: www.rtands.com

What is the Amtrak case about?

The case targets former Amtrak executive Richard Thompson, who allegedly steered contracts to favored IT contractors for cash and gifts without following Amtrak’s official procedures for procurement.

What were the bribes that the Amtrak exec was given?

At least $97,000 in cash, high-end Apple electronics worth $9,500, $40,000 from another business, a car and free accommodations were allegedly given to suppliers to win Amtrak-related contracts.

What teas were the scroll's findings and judgment have for the case?

The defendants each face a maximum of 20 years in prison on honest services wire fraud. One vendor, Darren Hannam, is also charged with tampering with evidence after an FBI search.

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