John P. Pigsley and his co-conspirator, John Rafferty, were charged in April 2023 for defrauding Keolis and the IRS out of over $8 million. Pigsley, the former Assistant Chief Engineer at Keolis Commuter Services, admitted to his role in the scheme, according to the U.S. Attorney's Office.
From 2014 to 2021, Pigsley and his accomplice John Rafferty ran a scheme where they submitted fake invoices for personal expenses, like vehicles and equipment, to Keolis, which paid over $4 million. Pigsley, who also ran a construction company, faces charges for wire fraud, tax evasion, and money laundering. Rafferty has also pled guilty, and both are set to be sentenced in April 2025, with Pigsley's sentencing on April 17 and Rafferty's on April 10, as reported by the U.S. Attorney's Office.
Pigsley stole over $4.5 million by ordering copper wire through Keolis and selling it, ensuring its movement was untraceable. He faces up to 20 years in prison, up to three years of supervised release, and fines up to $250,000 for his actions. Additionally, the charge of tax evasion could result in up to five years in prison, up to three years of supervised release, and fines of up to $250,000. Filing a false tax return could lead to up to three years in prison, up to one year of supervised release, and fines of up to $250,000. The FBI and IRS investigated the case, and the U.S. Attorney's Office noted that the stolen funds affected public services and improvements for Keolis and MBTA riders.
