Bribery Scandal Exposed: Contractor Exec Sentenced for Ripping Off Taxpayers!

Court News

PHILADELPHIA, PA — Donald Seefeldt, 65, of Wilmette, Illinois, was sentenced this week to 57 months in federal prison for his involvement in a bribery conspiracy that defrauded Amtrak and U.S. taxpayers. The sentencing, handed down by U.S. District Court Judge Wendy Beetlestone, also includes one year of probation, 59 hours of community service, and a $50,000 fine.

Seefeldt, the Senior Executive Vice President of a masonry restoration contractor, conspired with Amtrak Employee #1 and other company officials to manipulate the performance and expenses of a $58.5 million façade repair project at Amtrak’s 30th Street Station in Philadelphia. Federal funding covered 90% of the project’s costs.

From May 2016 to November 2019, Seefeldt and colleagues, including company vice presidents Lee Maniatis and Khaled Dallo, provided Amtrak Employee #1 with gifts valued at more than $323,000. These included luxury vacations to Ecuador and India, expensive watches, jewelry, and cash, alongside other items such as dinners, a dog, and transportation. The goal was to secure favorable treatment for their company during the project.

Amtrak Employee #1, in exchange, used his position to approve inflated project expenses and share confidential internal information with Contractor officials. These actions resulted in over $52 million in additional project payments, with $2 million in fraudulent overbilling passed onto Amtrak.

“Seefeldt conspired to bribe an Amtrak employee, to benefit himself and his colleagues,” said U.S. Attorney David Metcalf. “In padding their pockets at the government’s expense, they were, in fact, victimizing U.S. taxpayers. Every dollar lost to federal program fraud means one less for a vital program or public priority.”

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Investigators from the FBI, the Amtrak Office of Inspector General, and the Department of Transportation Office of Inspector General revealed the depth of the conspiracy. FBI Special Agent in Charge Wayne A. Jacobs described the actions as “a betrayal of the trust placed in us by the communities we serve.”

“Stealing and misappropriating federal funds is not just a criminal act; it damages the integrity of the systems [communities] depend on,” Jacobs said. “Bribery directly undermines our rule of law.”

Michael J. Waters, Special Agent in Charge for the Amtrak OIG Eastern Area Field Office, emphasized the importance of accountability in federally funded projects. “Our work on this case sends a strong message to all contractors about their obligation to operate legally and ethically,” Waters stated.

Brian C. Gallagher, Special Agent in Charge of the DOT OIG Northeastern Region, stressed the wider implications of the sentence. “Today’s sentencing sends a clear message: if you defraud our nation’s infrastructure system, you will be caught and held accountable.”

Assistant U.S. Attorney Jason Grenell prosecuted the case.

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