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FTA Debars Former CEO of Virginia Regional Transit, an Automotive Repair Business, and Its Former Owner for a Bribery and Overbilling Scheme

On September 30, 2016, FTA debarred Mark McGregor, Thomas Ahalt, and Mobile Auto Truck Repair (Mobile Auto) from participating in federally funded projects for 3 years. McGregor served as the chief executive officer of Virginia Regional Transit (VRT), a nonprofit organization that provides transportation services throughout northern Virginia. Ahalt is the former president and owner of Mobile Auto, which provided automotive repair services to VRT. 

McGregor and his coconspirator Ahalt were convicted and sentenced for participating in a bribery scheme that caused $380,000 in losses to the Government. VRT is funded by a combination of Federal, State, and local grants, including DOT funds. From January 2007 through December 2015, Mobile Auto submitted false invoices for additional weekly labor charges. McGregor approved and VRT paid to Mobile Auto approximately $380,000 for those fraudulent labor charges. A portion of the monies VRT paid to Mobile Auto were Federal funds from FTA. In exchange, McGregor received regular kickback payments from Ahalt and others associated with Mobile Auto, totaling approximately $190,000. 

DOT-OIG conducted this investigation with the FBI. 

Note: A suspension or debarment frequently covers a specific period of time. Please consult the System for Award Management to determine whether a company or individual is currently suspended or debarred.