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Investigations

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Former Vice President of Prime Contractor Charged in Bribery Scheme on Major Amtrak Renovation Project

On March 1, 2024, the U.S. Attorney for the Eastern District of Pennsylvania filed an information charging Khaled Dallo with conspiracy to commit Federal program bribery. Dallo was the vice president of a masonry restoration contractor that was the main contractor on Amtrak's federally funded 30th Street Station Façade Repair and Restoration Project in Philadelphia, Pennsylvania. Dallo supervised the contractor's performance on the project, which was valued at over $87 million and funded almost entirely with FRA grant funds.

The information alleges that, from approximately May 2016 until approximately November 2019, Dallo and others conspired to provide an Amtrak employee with gifts and other things of value, including paid vacations, jewelry, dinners, entertainment, and transportation, totaling approximately $320,000. In return, the employee used their position to approve additional, more expensive changes to the 30th Street Façade Project, thereby increasing the value of the work that the contractor performed. A series of falsely inflated change orders reflected these additional expenses, causing Amtrak to be substantially overbilled for the completion of the 30th Street Façade Project.

DOT-OIG is conducting this investigation with Amtrak-OIG and the Federal Bureau of Investigation.

Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.