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The final defendant in a sprawling Amtrak corruption case was sentenced to two months in federal prison

Khaled Dallo was an employee at Mark 1 Restoration and helped provide a series of extravagant gifts to a Philadelphia-based project manager.

William H. Gray III 30th Street Station in Philadelphia on Tuesday, October 21, 2025.
William H. Gray III 30th Street Station in Philadelphia on Tuesday, October 21, 2025.Read moreElizabeth Robertson / Staff Photographer

The final defendant in a sweeping corruption probe that uncovered a series of bribes being lavished upon an Amtrak manager during a renovation project at 30th Street Station was sentenced Friday to two months in prison.

Khaled Dallo was an employee at an Illinois-based masonry firm and helped provide a series of extravagant gifts to the Philadelphia-based project manager, Ajith Bhaskaran, including vacations to India and Ecuador, a Tourneau watch, expensive dinners in Center City, a German shepherd puppy, and cash.

In all, prosecutors said, Dallo and supervisors at his company, Mark 1 Restoration, provided Bhaskaran with nearly $330,000 in bribes, and Bhaskaran in turn helped approve tens of millions of dollars in expenses for Mark 1, nearly doubling the cost of restoring the train station’s historic facade.

Dallo, 69, said in court that he was sorry for his misconduct, and that it stood in contrast with how he has tried to live the rest of his life.

“I knew it was wrong,” he said, “and chose to do it anyway.”

His sentencing represents the final chapter in a saga that saw federal prosecutors indict six people connected to the restoration project — four from Mark 1, and two from another contractor.

All of the Mark 1 employees have since been sentenced to prison. Dallo received the shortest term, with prosecutors crediting him for being the first person to plead guilty and saying he served a more subordinate role in the scheme.

Mark 1’s owner received a 7½ year sentence, while two other executives received penalties of about five years and 18 months, respectively.

Bhaskaran, the Amtrak manager, was charged with unrelated wire fraud, but died of heart failure in 2019.

The renovation project Bhaskaran oversaw at 30th Street was announced in 2015, when the railroad agency signed a $58 million contract with Mark 1 to repair and clean the station’s limestone facade.

Bhaskaran controlled the project’s purse strings, and prosecutors said Mark 1 employees quickly came to realize their conditions on the job site could be improved if he was happy.

About a year into the project, prosecutors said, Bhaskaran began requesting gifts, despite Amtrak rules that bar employees from receiving them. Executives at Mark 1 knew Bhaskaran’s requests were improper, prosecutors said, but went on to fulfill them anyway — in part because Bhaskaran had the ability to approve additional business on the project.

Dallo was among the Mark 1 employees who provided Bhaskaran with dinners at steakhouses, limousine rides, a $5,600 watch, the paid vacations, and a nearly $5,000 check to an Illinois breeder of German shepherds.

Over that same time frame, Mark 1 continued to receive additional funding for its work at 30th Street. In total, prosecutors said, Bhaskaran helped secure the company $52 million in new contracts, about $2 million of which was considered fraudulent overbilling.

The scheme began to fall apart in 2018, when an anonymous tipster sent a letter to Amtrak’s inspector general about Bhaskaran’s suspicious behavior. That led to an investigation involving the FBI and Amtrak’s inspector general.

Dallo acknowledged his wrongdoing about a year later, as soon asfederal agents confronted him, prosecutors said.

Still, U.S. District Wendy Beetlestone told Dallo that his actions were not a onetime lapse in judgment, but a “considered, yearslong” effort that led to taxpayer money being spent on graft.

“It was a crime fed by greed,” she said.