Inside the corruption scandal at Philly's 30th Street Station
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An Amtrak booklet outlining safety rules lies on a passenger chair's table. Photo: Mark Makela/Getty Images
As a massive redevelopment of Philadelphia's 30th Street Station is underway, a corruption scheme from a station restoration project years earlier is playing out in court.
Why it matters: The elaborate scheme, which spanned more than three years, ballooned the taxpayer-funded project's price tag to $109 million, nearly double its original cost, the Inquirer reports in a deep dive into the case.
The big picture: Five people who worked on the project to restore the Amtrak station's historic facade between 2015 and 2018 have admitted to bribe-related crimes in federal court.
- The latest: The owner of masonry restoration firm Mark 1 Restoration — Mark Snedden — was charged in the case last month with conspiracy to commit bribery.
State of play: Authorities were investigating Ajith Bhaskaran, a former Amtrak manager who oversaw the project, in the bribery scheme when they discovered evidence suggesting he was involved in an unrelated crime, per a criminal complaint.
- He was indicted on wire and Social Security fraud charges in 2020 but died of heart failure while the case was pending.
- Prior to his death, federal prosecutors say, Bhaskaran admitted to accepting bribes from Amtrak contractors hired to help with the project, per the Inquirer.
- They estimate he pocketed gifts worth nearly half a million dollars, including cash, concert tickets, steak dinners, jewelry and trips from the contractors, who knew he controlled the project's purse strings.
What they're saying: An Amtrak Inspector General report in 2023 said capital improvement projects were susceptible to fraud.
- The agency told the Inquirer it has taken steps to shore up contract oversight.
Catch up quick: In 2015, Amtrak signed a $58 million contract with Mark 1 Restoration to repair the station's limestone exterior and clean its facade.
- Prosecutors accuse Mark 1 Restoration of submitting inflated bills to Amtrak to cover bribes.
Bhaskaran brought another contractor, Vega Solutions, on to oversee Mark 1's work for $1.3 million, per the Inquirer.
- Prosecutors say Bhaskaran helped Vega Solutions submit false work invoices to Amtrak, along with fraudulent reimbursements.
- Vega Solutions' Sandeep Hardikar and Madhura Atitkar pleaded guilty to conspiracy to commit bribery and fraud, per the Inquirer.
- Atitkar was sentenced last year to three years of probation and a fine. Hardikar's sentencing was sealed by the court, but prosecutors said he paid more than $786,000 in restitution.