Donald Seefeldt, a former executive at a masonry contractor, has pleaded guilty to conspiracy to commit federal program bribery. The announcement was made by United States Attorney Jacqueline C. Romero. Seefeldt, aged 65 from Wilmette, Illinois, entered his plea before United States District Court Judge Wendy Beetlestone.
The charges relate to a contract awarded on December 10, 2015, where the Contractor received $58,473,000 from Amtrak for façade repairs and restoration at Philadelphia's 30th Street Station. Approximately 90 percent of this funding came from federal sources.
Seefeldt served as Senior Executive Vice President with oversight responsibilities for the project. His colleagues Lee Maniatis and Khaled Dallo were vice presidents responsible for supervising the work. An unnamed senior officer referred to as Official #1 was also involved in the operations.
Amtrak Employee #1 acted as Project Manager on the site and held significant influence over approvals of invoices and payments related to the project. Although not solely responsible for payment approval, their role was crucial in processing financial transactions.
A contractual clause prohibited any offers of cash or gifts from Contractor officials to Amtrak employees intended to secure favorable treatment regarding contracts or agreements.
From May 2016 through November 2019, Seefeldt allegedly conspired with others including Amtrak Employee #1 and provided gifts worth approximately $323,686. These included vacations, jewelry, cash, dinners, entertainment, and transportation in exchange for favorable actions benefiting the Contractor during project execution.
Allegations suggest that Amtrak Employee #1 shared internal information exclusive to agency staff with Seefeldt and other officials at the Contractor's firm. This employee reportedly approved additional costly changes amounting to over $52 million in extra work orders or contract modifications that led Amtrak to be significantly overbilled by more than $2 million.
Seefeldt is set for sentencing on May 22 facing up to five years in prison alongside potential fines and restitution totaling up to $2 million jointly with co-conspirators.
U.S. Attorney Romero emphasized: “Every dollar of federal funding lost to fraud is a dollar less put toward legitimate programs and projects.” She reiterated her office's commitment along with partners' efforts in holding accountable those exploiting taxpayer resources.
The investigation was conducted by the FBI along with inspectors general from Amtrak and the Department of Transportation under prosecution by Assistant U.S. Attorney Jason Grenell.