Inside the corruption scandal at Philly's 30th Street Station
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.
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