⏱ 2 min read
A contractor and its owner have agreed to pay $7.2 million to resolve civil claims over a kickback scheme involving an Amtrak official and a renovation contract for Philadelphia’s 30th Street Station. Mark 1 Restoration Company and its owner, Mark Snedden, paid an Amtrak employee overseeing the project over $323,000 in gifts and other benefits in exchange for favorable contract modifications. The scheme resulted in over $2 million in overbilling to Amtrak. Snedden and other Mark 1 executives had previously pleaded guilty to criminal charges related to the scheme.
The kickbacks included paid vacations, jewelry, cash, dinners, entertainment, a dog, and training for the dog. In return, the Amtrak employee helped obtain contract modifications that falsely inflated the costs of the work and caused Amtrak to overpay. As part of the civil resolution, Mark 1 and Snedden will pay $2.4 million and release Amtrak from any claim to an additional $4.8 million in funds that Amtrak had retained or not paid.
The case highlights the importance of integrity in federal contracting. U.S. Attorney David Metcalf stated that trying to buy favors or submit false claims is not optional and will be prosecuted. The resolution brings an end to the civil claims related to the kickback scheme, but the criminal cases against Snedden and other Mark 1 executives are still ongoing.
The $7.2 million resolution is a significant payment, but it is also a reminder that corruption and kickback schemes can have serious consequences. The case serves as a warning to contractors and government officials that engaging in such schemes will be investigated and prosecuted.
📋 Key Facts
- Crime: Public Corruption
- Defendant: Pennsylvania
- Location: PA
- Source: DOJ Press Release
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