Source: US FBI
PHILADELPHIA – United States Attorney David Metcalf announced that Mark Snedden, 69, of Munster, Indiana, was charged by information with conspiracy to commit federal program bribery and making and presenting a false claim.
As presented in the information, on or about December 10, 2015, a masonry restoration contractor (the “Contractor”) was awarded a $58,473,000 contract by Amtrak to be the main contractor on a façade repair and restoration project at Amtrak’s 30th Street Station in Philadelphia.
Federal funding supplied approximately 90 percent of the money Amtrak used to pay the Contractor for the repair and restoration of the 30th Street Station façade.
The defendant was the sole owner and President of the Contractor with responsibility to provide executive oversight of the Vice Presidents of the Contractor and the Contractor’s performance on the 30th Street Station façade project.
Donald Seefeldt, Lee Maniatis, and Khaled Dallo, each charged elsewhere, were Vice Presidents of the Contractor, with responsibility to supervise the Contractor’s performance on the 30th Street Station façade project.
Amtrak Employee #1 was employed by Amtrak as the Project Manager on the repair and restoration project. In that capacity, Amtrak Employee #1 was responsible for communicating with the Contractor about the work being done on 30th Street Station. Amtrak Employee #1 was also responsible for reviewing the invoices, change orders, and requests for payment that the Contractor submitted to Amtrak. Amtrak Employee #1 had the power to approve or reject these invoices, change orders, and requests for payment. Although Amtrak Employee #1 did not have the singular authority to approve Amtrak payments to the Contractor, his approval was a critical step in that process.
The contract between Amtrak and the Contractor prohibited Snedden and other Contractor officials from “offer[ing] to any Amtrak employee, agent, or representative any cash, gift, entertainment, commission, or kickback for the purpose of securing favorable treatment with regard to award or performance of any contract or agreement.”
As alleged in the information, from in or about May 2016 through in or about November 2019, in Philadelphia, in the Eastern District of Pennsylvania, and elsewhere, the defendant conspired and agreed with others known and unknown to the United States Attorney, including Amtrak Employee #1, Lee Maniatis, Khaled Dallo, and Donald Seefeldt, to commit an offense against the United States, that is, to knowingly and corruptly give, offer, and agree to give, a thing of value to Amtrak Employee #1, intending to influence and reward Amtrak Employee #1 in connection with any business, transaction and series of transactions.
Specifically, the information alleges, Donald Seefeldt, Lee Maniatis, Khaled Dallo, and others known to the United States Attorney, with Snedden’s knowledge and agreement, provided Amtrak Employee #1 with gifts and other things of value totaling approximately $323,686, including, among other things, paid vacations, jewelry, cash, dinners, entertainment, a dog, training for that dog, and transportation, to ensure that Amtrak Employee #1 used his power and influence to benefit the Contractor during the performance of the 30th Street Station Repair and Restoration Project.
In return for these gifts and other things of value, Amtrak Employee #1 used his position at Amtrak to access internal agency information available only to Amtrak employees about the 30th Street Station Project and shared this internal information with the defendant and other officials with the Contractor.
The information further alleges that Amtrak Employee #1 used his position at Amtrak to approve additional, more expensive changes to the 30th Street Station Repair and Restoration Project, thereby increasing the amount and value of the work to be performed by the Contractor. These additional expenses were reflected in a series of change orders or contract modifications. In total, Amtrak Employee #1 approved over $52 million of additional payments from Amtrak to the Contractor. Amtrak Employee #1 and officials with the Contractor falsely inflated the true costs of some of the work to be performed by the Contractor under these change orders, causing Amtrak to be substantially overbilled by over $2 million for the completion of the 30th Street Station Repair and Restoration Project.
If convicted, the defendant faces a maximum possible sentence of 10 years’ imprisonment, a three-year period of supervised release, a $500,000 fine, and $200 special assessment.
The case was investigated by the FBI, the Amtrak Office of Inspector General, and the Department of Transportation Office of Inspector General and is being prosecuted by Assistant United States Attorney Jason Grenell.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.