Passenger Trains > Former VP of Contractor Charged in Amtrak Bribery Scheme

Former Vice President of Prime Contractor Charged in Bribery Scheme on Major Amtrak Renovation Project

On March 1, 2024, the U.S. Attorney for the Eastern District of Pennsylvania filed an information charging Khaled
Dallo with conspiracy to commit Federal program bribery. Dallo was the vice president of a masonry restoration
contractor that was the main contractor on Amtrak's federally funded 30th Street Station Façade Repair and
Restoration Project in Philadelphia, Pennsylvania. Dallo supervised the contractor's performance on the project,
which was valued at over $87 million and funded almost entirely with FRA grant funds.

The information alleges that, from approximately May 2016 until approximately November 2019, Dallo
and others conspired to provide an Amtrak employee with gifts and other things of value, including paid
vacations, jewelry, dinners, entertainment, and transportation, totaling approximately $320,000. In return,
the employee used their position to approve additional, more expensive changes to the 30th Street
Façade Project, thereby increasing the value of the work that the contractor performed. A series of
falsely inflated change orders reflected these additional expenses, causing Amtrak to be
substantially overbilled for the completion of the 30th Street Façade Project.

DOT-OIG is conducting this investigation with Amtrak-OIG and the Federal Bureau of Investigation.

US Dept. of Transportation Office of Inspector General

Full article:

https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDAsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3Lm9pZy5kb3QuZ292L25vZGUvNDYyMDk_dXRtX21lZGl1bT1lbWFpbCZ1dG1fc291cmNlPWdvdmRlbGl2ZXJ5IiwiYnVsbGV0aW5faWQiOiIyMDI0MDMyNS45MjM1MDA5MSJ9.2GrzqFvTpvHisfCFbr9N7VIVUUQeHnAP7AM5M5iABzI/s/726743975/br/239557818580-l



Edited 1 time(s). Last edit at 03/25/24 21:19 by GenePoon.

"Hey, I know a guy..................................."

It seems to be how business is done in Philadelphia...!!!

GenePoon Wrote:
-------------------------------------------------------
> It seems to be how business is done in
> Philadelphia...!!!

...and Illinois.

...and everywhere.

Human beings have been corrupt since the beginning of time.

Do we know who the Amtrak employee is? d

restricted_speed Wrote:
-------------------------------------------------------
> ...and everywhere.
>
> Human beings have been corrupt since the beginning
> of time.

That's one reason why low bids often turn into high costs. Nobody looks at the ocean of change orders.

Ruby red Missouri just had a few highway dept guys locked up for contractor graft.

Happens all over.

Posted from Android

These cases are complicated and difficult to prove.  In the late 70s, if my memory is correct, Amtrak had a similar case in which the Amtrak employee received a house on Chesapeake Bay, but the house was given to the Amtrak employee's sister (non-employee).  The contractor, of course, denied everything, but I think all parties were convicted.  

Hope this guy gets a harsh sentence, I hate corruption.  Unfortunatley, as others mentioned, it happens in a lot of places.  Was reading an article the other day about corruption in the oil industry and how Ecuador with lost out on potentially billions of dollars of tax revenue because various officals were bribed for oil traders to get sweetheart deals.  And at trial, one of the officials named a few other oil tradering companies that had bribed him besides the one that trial specifically related to.  For the US, billions is a rounding error, but for Ecuador it's still a lot of money.

Nathan

See my question from the 26th: Is there some rule against naming A T employees who may be guilty of criminal offenses? d

It's possible the Amtrak employee turned state's evidence and gave info on the contractor.

In other Amtrak corruption cases, and there are several, the US attorney names the accused employee.

https://www.justice.gov/usao-edpa/pr/amtrak-employee-charged-accepting-bribes

Thanks, 484, I had not considered that possibility. Given A T's many woes, this allegation of fraud is truly disturbing. If convicted, I hope the perps get swift, sure and lengthy punishment. d