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FBI investigates Virginia Railway Express contract

Friday - 8/17/2012, 1:14pm  ET

FREDERICKSBURG, Va. - Kickback allegations involving a Virginia Railway Express contract are being investigated by the FBI.

Railway spokesman Mark Roeber tells The Washington Post ( http://bit.ly/Piy1qK) that the arrangement being investigated involves a subcontractor. The company was hired as part of a five-year, $2.6 million contract for landscaping, trash removal and other maintenance work.

The newspaper says it obtained a copy of an invoice indicating that a company owned by a former Virginia Railway Express employee received a $3,000 payment from the subcontractor. The payment was for "consulting services."

The former employee was fired earlier this year. The newspaper did not identify him because he has not been charged with a crime.

State auditors also are investigating.

Roeber says the railway has cooperated with both investigations.

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Information from: The Washington Post, http://www.washingtonpost.com


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)