Cathleen Shive, the former president and owner of Hatfield-based Qual-Tran Products Company LLC, has pleaded guilty to conspiring to restrain trade in a scheme that rigged bidding on SEPTA parts contracts. The former executive could now face up to 10 years in federal prison, three years of probation and a fine, while the company itself could be hit with a fine of up to $100 million and a term of probation.
Federal prosecutors charged Qual-Tran with violating federal antitrust laws, alleging the company conspired with competitors and others to manipulate SEPTA's bidding process, according to NBC10 Philadelphia. Qual-Tran supplied transportation parts to transit agencies across the country, including SEPTA, which purchases parts and equipment for buses, trains and rail systems. Shive joined the company in 2011 and became its president and owner in 2024, the same year prosecutors say the scheme was still active.
How the Scheme Allegedly Worked
According to prosecutors, the bid-rigging scheme involved SEPTA contracts between March 2016 and November 2024, all of which received federal funding. Qual-Tran and its co-conspirators coordinated bids before SEPTA solicitations closed, and competing vendors submitted intentionally losing bids to ensure a predetermined company won a contract. In at least one instance, Qual-Tran submitted its own bid alongside a second bid falsely appearing to come from another company.
Prosecutors say Shive personally coordinated with competitors to submit those intentionally losing bids. The tactic created the appearance of competition while steering contracts to a preferred company, undermining a process SEPTA says is designed to promote competition and secure the best prices for taxpayers.
Family Weighed Heavily in Decision to Plead
Shive's attorney, Louis Busico, said the choice to plead guilty rather than go to trial was not an easy one. “However, at the end of the day, her family is the most important thing to her, and she did not wish to put them through a trial,” he said, per the same NBC10 report.
A sentencing date had not been scheduled as of Friday. SEPTA has said that an employee allegedly involved in the scheme is no longer with the transit agency, according to a SEPTA spokesperson cited by the outlet.
What Comes Next Under Federal Antitrust Law
The case falls under the Sherman Act, which the Federal Trade Commission notes carries criminal penalties of up to $100 million for a corporation and $1 million for an individual, along with up to 10 years in prison. In this case, Shive could face up to 10 years in prison and a fine, while Qual-Tran could face a fine of up to $100 million as the case moves toward sentencing.
