Investigations

On November 17, 2020, the U.S. Attorney’s Office for the Eastern District of Pennsylvania filed a civil complaint against First State Manufacturing (FSM), a Milford, Delaware, textile manufacturing corporation, for violating the False Claims Act. On the same date, the U.S. District Court for the Eastern District of Pennsylvania granted a joint motion for consent judgment that resolved the matter without litigation. The judgment approved a civil settlement agreement and required FSM to pay $393,250 to the United States. FSM agreed to the consent judgment but denies the contentions of the United States and admits no wrongdoing.

 

According to the civil complaint, FSM executive management bribed former Amtrak procurement official Timothy Miller in order to receive lucrative fleet maintenance contracts from Amtrak. In 2019, Miller was sentenced in U.S. District Court, Philadelphia, Pennsylvania, for his role in the bribery and kickback scheme.

 

DOT-OIG conducted this investigation with the Amtrak-OIG, FBI, and Internal Revenue Service-Criminal Investigation Division (CID).