Ex-Keolis Official Stole Millions From MBTA Commuter Rail: Indictment

BOSTON, MA — A high-ranking former official at the private company that operates the MBTA Commuter Rail system was arrested Wednesday after a grand jury indicted him on a raft of charges linked to a scheme to bilk the MBTA out of about $8 million, federal officials said.

John Pigsley, a Beverly resident who worked as the assistant chief of engineer of facilities for Commuter Rail operator Keolis, was arrested alongside New Hampshire resident John Rafferty, 69, who operated an electrical company that participated in the scheme, according to the U.S. Attorney for the District of Massachusetts.

According to federal officials, Piglsey operated a separate construction company called Pigman Group while working at Keolis. Over the seven years ending in November 2021, Pigsley instructed Rafferty to bill Keolis for vehicles, construction equipment and construction supplies through his firm, LJ Electric. Rafferty then kept a portion of proceeds from those invoices, federal prosecutors said.

Pigsley also used his role at Keolis to purchase copper wire, which he then stole and sold, prosecutors said. He earned about $4.5 million by selling the wire, prosecutors said.

Pigsley is facing charges of 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.

Keolis has been managing the commuter rail system since 2014 under a contract worth up to $350 million annually. The French company also manages transit systems in Nevada, California and Virginia.