The general manager at an electrical company that supplied MBTA Commuter Rail operator Keolis has pleaded guilty to a federal fraud charge in connection with a scheme to steal over $4 million that was meant for MBTA Commuter Rail maintenance and repairs.
John Rafferty, 69, of Hale's Location New Hampshire, and an alleged co-conspirator who worked for Keolis are accused in a scheme to steal millions from the agency, which has operated the MBTA Commuter Rail system since 2014.
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According to the U.S. Attorney's Office, Rafferty was the general manager at LJ Electric, Inc. an electrical supply company that worked with Keolis. The transportation company paid over $17 million to LJ Electric between 2014 through 2021. Prosecutors allege that Rafferty, along with former Keolis employee John P. Pigsley, worked up a plan to create fake LJ Electric invoices.
Rafferty is accused of spending more than $3 million on items for Pigsley and others from July 2014 and November 2021 - including construction equipment and vehicles, at least $1 million in home building supplies and service and a $54,000 camper. Prosecutors claimed he would recoup the cost by filing false invoices to Keolis, including a cut for Rafferty.
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Rafferty pled guilty to one count of conspiracy to commit wire fraud. He is scheduled for sentencing on Sept. 18. The charge carries a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000.
Pigsley has been indicted on 17 charges for his role in the scheme.
According to the charging documents, between 2014 and November 2021, Pigsley was employed as Keolis’ assistant chief engineer of facilities and was responsible for the maintenance of MBTA Commuter Rail facilities and their engineering operations, including handling corrective repair and project management for assets and maintenance and ordering and approving his subordinates’ orders of electrical supplies from outside vendors for Keolis.
Pigsley also operated a separate construction company called Pigman Group.
The case is ongoing.
