BOSTON — A former official with the contract operator of the Massachusetts Bay Transportation Authority commuter rail service is facing fraud charges for thefts totaling more than $8 million, in part with the help of a supplier for the agency.
The Boston Globe reports John Pigsley, a former assistant chief engineer who managed facilities maintenance for commuter operator Keolis, and electrical subcontractor John Rafferty allegedly used fake invoices to steal more than $4 million. Pigsley also is accused of stealing copper wire and selling it for scrap for more than $4.5 million.
The U.S. Attorney’s Office for the District of Massachusetts said in a press release that Pigsley, 58, has been indicted by a federal grand jury on five counts of wire fraud, one count of conspiracy to commit wire fraud, six counts of tax evasion, one count of filing a false tax return, and four counts of structuring financial transactions to evade reporting requirements.
Piglsey was arrested Wednesday morning and pleaded not guilty in a court appearance Wednesday afternoon.
Rafferty, 69, has agreed to plead guilty to one count of conspiracy to commit wire fraud.
“Over the last few years, T ridership has had to endure its fair share of both acute and chronic issues. Today, unfortunately, we add fraud to that list,” said U.S. Attorney Rachael S. Rollins. She said the money taken in the alleged thefts “could have been used to ensure significantly safer, faster, and more reliable transportation for riders. Instead, these men lined their pockets for their own selfish gain. It is my hope that this prosecution holds these alleged criminals accountable.”
The Attorney’s Office says that between July 2014 and November 2021, Rafferty purchased vehicles, construction equipment, construction supplies, and other items for Pigsley; his construction company, Pigman Group, and others, then submitted invoices for those items to Keolis, with Rafferty keeping a percentage.
The Globe reports that an MBTA representative said Keolis notifed the transit agency of the alleged overbilling and “credited the T for all funds identified in the alleged scheme.” A Keolis representative said that in 2021, the company discovered “project anomalies linked with the practices of an employee,” who was investigated and fired. The FBI and IRS were involved in the investigation, according to the U.S. Attorney’s office.
Sounds about right. Was accused of stealing copper wire and selling it. Then was indicted by a grand jury on five counts of wire fraud. I feel sorry for the wire. lol.
Mr. Landey if you’re “not a huge supporter of privatizing government services” then you may not be as big a “right wing nut” as you think you are. Not a bad thing at all sir.
How is it that these thieves don’t think that they’ll eventually be caught? Especially for such a huge amount. A charge should be added for gross stupidity. Please send this mope to jail for a long time.
Yuck. Forgive my jumping to an oversized conclusion at 5:17 AM Central Daylight Time (way too early in the morning) but this is what can happen in a cost-plus contract. Mister Pig steals from Keolis. Keolis passes on its costs to MBTA. MBTA writes a check. I may be a far-right right-wing wing-nut, but I’ve never been a huge supporter of privatizing government services. Accountability sinks into the swamp.
In the second to the last paragraph of the article, it seems to imply the Mister Pig was running a side hustle while employed in a high position by Keolis. Isn’t that a Red Flag????
Forgive me for taking MBTA’s crashing and burning personally. A couple of years ago, I stood trackside in Quincy, Massachusetts, watching the parades of Braintree Red Line subway trains and Old Colony Division commuter rail on their adjacent R/W’s. I was so proud of my former home town’s two rail services. It’s just a house of cards.