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Investigations

Date

Construction Management Firm and Owner Convicted and Sentenced in Amtrak Bribery and Fraud Scheme

On March 13, 2024, the U.S. District Court for the Eastern District of Pennsylvania convicted and sentenced Madhura Atitkar and Atitkar’s company, Vega Solutions, Inc. Atitkar was sentenced to 36 months of probation, 100 hours of community service, a $20,000 fine, and a $200 special assessment. Vega Solutions was sentenced to 60 months of probation, a $243,105 fine, and a $400 special assessment. Each was also sentenced to $59,165 in joint and several restitution. In September 2023, Atitkar pleaded guilty to one count of conspiracy to commit mail fraud and one count of false claims to the United States. Vega Solutions pleaded guilty to one count of false claims to the United States. The charges were in connection to the Amtrak 30th Street Station Façade Repair and Restoration Project in Philadelphia, Pennsylvania, valued at over $87 million and funded mostly through FRA grants. Amtrak awarded approximately $4.2 million in construction management contracts to Vega Solutions to monitor the work performed by the prime contractor for the project.

The investigation revealed that, from December 2016 until November 2019, Atitkar and other individuals conspired to develop schemes to defraud Amtrak and enrich themselves. The alleged conduct included, but was not limited to, paying approximately $150,000 in cash bribes to a former Amtrak project manager and implementing fraudulent billing schemes through which Vega Solutions intentionally overcharged Amtrak. As a result, Amtrak suffered a loss of $786,247.

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