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MBTA commuter rail engineer pleads guilty to stealing $8 million from operating company
John Pigsley pleaded guilty Thursday to defrauding Keolis of over $8 million and defrauding the Internal Revenue Service.
An MBTA operating system employee pleaded guilty Thursday to defrauding his company of over $8 million and defrauding the Internal Revenue Service.
John Pigsley, 59, was hired as an assistant chief engineer of facilities in 2014 for Keolis Commuter Services, which has operated the MBTA commuter rail for over 10 years, according to a statement from the U.S. Attorney’s office. His co-conspirator, John Rafferty, worked as the general manager for electrical supply vendor LJ Electric that Keolis contracted between 2014 and 2021.
Between July 2014 and November 2021, Pigsley and Rafferty engaged in a false invoice scheme that defrauded Keolis of over $4 million. Rafferty purchased construction equipment and supplies for Pigsley and his separate company, Pigman Group, and recouped the costs by sending fraudulent invoices to Keolis, according to the statement.
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Pigsley also allegedly ordered Keolis to purchase copper wire that he later stole and sold to scrap metal businesses, earning over $4.5 million in cash.
He further defrauded the IRS by failing to withhold and pay federal income tax on income from both schemes, filing a false tax return in 2016, and structuring deposits in his bank account in a way that would dodge transaction reporting requirements, the statement said.
The pair were charged in April 2023. Pigsley pleaded guilty to five counts of wire fraud, one count of conspiracy to commit wire fraud, six counts of tax evasion, one count of filing a false tax return and four counts of structuring financial transactions to evade reporting requirements, according to the statement. Sentencing is set for April 17.
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Rafferty pleaded guilty to one count of conspiracy to commit wire fraud in June 2023 and is scheduled to be sentenced on April 10.
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