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Former Superintendent of MBTA pleads guilty to tax evasion

On January 25, Mary Lempitski, former MBTA manager who oversaw the operation of
MBTA’s Cash Processing Center (also known as the ‘Money Room’), pled guilty in U.S.
District Court in Boston, MA to three counts of tax evasion. Our investigation found
that, from 2000 through 2002, Lernpitski spent more than $267,000, mostly in $20 bills,
at ‘high–end’ department stores and boutiques for personal items such as designer jewelry,
clothing, and cosmetics. Lempitski’s taxable income substantially exceeded the amount
she declared on her 2000 through 2002 income tax filings. MBTA’s ‘Money Room’
processes some $500,000 in cash receipts daily, including fares collected from the public
using buses and trains. Multiple audits of the ‘Money Room’ have documented extremely
poor internal controls, and MBTA is the largest grantee in FTA’s New England Region,
averaging about $175 million in grants annually. Lempitski is scheduled for sentencing
on May 3, 2006. The ongoing investigation is being conducted jointly with the IRS and
MBTA Police.