On June 12, 2023, John Rafferty, former general manager of LJ Electric, Inc., pleaded guilty in the U.S. District Court for the District of Massachusetts to conspiracy to commit wire fraud for involvement in a scheme to defraud Keolis Commuter Services. On April 4, 2023, the U.S. Attorney's Office filed an information charging Rafferty with conspiracy to commit wire fraud. On the same day, John Pigsley, former Assistant Chief Engineer at Keolis—which operates and maintains the Massachusetts Bay Transportation Authority’s (MBTA) commuter rail system—was indicted for conspiracy, wire fraud, tax evasion, filing a false tax return, and structuring financial transactions.
The indictment alleged that from approximately July 2014 through November 2021, Pigsley defrauded Keolis. Specifically, Pigsley approved and caused Keolis to pay false invoices for electrical equipment and services that were never delivered to repay Rafferty for purchases made through LJ Electric for Pigsley. As part of the multimillion-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 and the MBTA.
DOT-OIG is conducting this investigation with the Internal Revenue Service and the Federal Bureau of Investigation (FBI).
Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.