30th Street Station Contractor and Its Owner Agree to $7.2 Million Resolution of Civil Claims Arising From Kickbacks Paid to Amtrak Official

PHILADELPHIA - United States Attorney David Metcalf announced today that Mark 1 Restoration Company ("Mark 1") and its owner Mark Snedden have agreed to a $7,257,232.12 resolution of civil claims arising from kickbacks that Mark 1 paid to an Amtrak official to obtain favorable changes to a contract to renovate the façade of William H. Gray III 30th Street Station in Philadelphia.

Snedden previously pleaded guilty to criminal charges arising out of the kickback scheme, as did Mark 1 executives Donald Seefeldt, Lee Maniatis, and Khaled Dallo. The criminal cases are United States v. Mark Snedden, No. 25-cr-120 (E.D. Pa.); United States v. Donald Seefeldt, No. 24-cr-419 (E.D. Pa.); United States v. Lee Maniatis, No. 24-cr-260 (E.D. Pa.); and United States v. Khaled Dallo, No. 24-cr-079 (E.D. Pa.).

As detailed in the criminal informations and admitted by Snedden during his guilty plea, he and the other Mark 1 executives who pleaded guilty conspired to provide an Amtrak employee overseeing the 30th Street Station renovation project with gifts and other things of value totaling approximately $323,686, including paid vacations, jewelry, cash, dinners, entertainment, a dog, and training for that dog.

In return, per the criminal filings and guilty pleas, the Amtrak employee used his position to help obtain a series of change orders or contract modifications that increased the total cost of the renovation project. As admitted by Snedden, those contract modifications falsely inflated the true costs of some of the work to be performed and caused more than $2 million in overbilling to Amtrak.

As part of the civil resolution, Mark 1 and Snedden agreed to make a payment of $2,400,000 and to release Amtrak from any claim to $4,857,232.12 in additional funds that Amtrak retained or otherwise did not pay to Mark 1 after learning of the kickback scheme.

"Integrity in federal contracting isn't optional," said U.S. Attorney Metcalf. "If you try to buy favors or submit false certifications, expect both civil and criminal consequences."

"Bribery strikes at the heart of the rule of law," said Wayne A. Jacobs, Special Agent in Charge of the FBI's Philadelphia Division. "Stealing and misusing federal funds is not only a crime, but it betrays the trust of the communities we serve and erodes confidence in the systems they rely on. Together with our partners, the FBI is committed to investigating corruption, protecting the integrity of our institutions, and holding accountable those who abuse their positions for personal profit."

"When contractors and insiders manipulate the procurement process through bribes and overbilling, taxpayers ultimately pay the price," said James Harper, Special Agent in Charge of Amtrak OIG's Eastern Field Office. "This case resolution reflects the close collaboration among our office, the FBI, the Department of Transportation OIG, and the U.S. Attorney's Office, and our shared commitment to protecting Amtrak's resources and taxpayer dollars by holding wrongdoers accountable."

"Kickback schemes that erode the integrity of federally funded transportation projects undermine public trust and divert resources from the communities they are meant to serve," said Brian C. Gallagher, Special Agent in Charge of the Department of Transportation Office of Inspector General's Northeastern Region. "Working alongside our partners at the FBI and the Amtrak Office of Inspector General, we remain committed to exposing fraud, holding accountable those who abuse their positions of trust, and safeguarding taxpayer dollars across our transportation system."

The civil matter was handled in the Eastern District of Pennsylvania by Assistant United States Attorneys Peter Carr and Landon Y. Jones. The FBI, the Amtrak Office of Inspector General, and the Department of Transportation Office of Inspector General investigated the case.

The claims resolved by the settlement are allegations only and there has been no determination of liability.