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Investigations

Date

FTA Suspends Massachusetts-Based Electrical Company, Its Owner and General Manager, and Former Keolis Assistant Chief Engineer

On June 13, 2023, the Federal Transit Administration (FTA) suspended L.J Electric, Inc., the company's President, Linda Rafferty, its General Manager, John Rafferty, and former Keolis Commuter Services Assistant Chief Engineer, John Pigsley, from participating in all federally funded procurement and non-procurement programs.
 
On June 12, John Rafferty 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—the company that operates and maintains the Massachusetts Bay Transportation Authority (MBTA) commuter rail system. On April 4, the U.S. Attorney's Office filed an information charging Rafferty with conspiracy to commit wire fraud. On the same day, Pigsley 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 and supplies, and other items for Pigsley and Rafferty’s friends and family. 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 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.