On April 4, 2023, a grand jury for the U.S. District Court for the District of Massachusetts indicted John Pigsley, former Assistant Chief Engineer of Keolis Commuter Services, for conspiracy to commit wire fraud, wire fraud, tax evasion, filing a false tax return, and structuring financial transactions. On the same date, an information was filed charging John Rafferty, general manager of LJ Electric, Inc., with conspiracy to commit wire fraud.
The indictment alleges that, starting as early as July 2014 and continuing until November 2021, Pigsley defrauded Keolis, which operated and maintained the Massachusetts Bay Transportation Authority (MBTA) commuter rail system. Specifically, Pigsley approved and caused Keolis to pay false invoices for electrical equipment and services that were never delivered to repay Rafferty for purchases Rafferty made through LJ Electric for Pigsley. Pigsley also caused Keolis to order copper wire which Pigsley diverted and scrapped for cash. As part of the multi-million dollar scheme, Pigsley asked Rafferty to purchase vehicles, construction equipment, construction supplies, and other items for Pigsley, Pigsley's friends and family members, and Rafferty's family members. Pigsley then directed Rafferty to recover the cost of the items by submitting false and fraudulent invoices to Keolis.
DOT-OIG is conducting this investigation with the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.
Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.