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Boston Herald
Boston Herald
7 Apr 2023
Joe Dwinell


NextImg:How did John Pigsley get hired by Keolis? He was linked to NH bad-check case

Former Keolis commuter rail engineer John Pigsley, indicted this week in an $8 million federal fraud case, was no stranger to the courts, records reveal.

Pigsley’s past fuel-oil company was convicted of a felony in New Hampshire, with a guilty plea submitted to passing bad checks in Grafton County in 2010. He was placed on probation and given a fine, which the Granite State’s attorney general’s office said was suspended.

The AG’s office added full restitution was paid to customers involved in that case.

It does, however, raise the question of why was Pigsley was hired by Keolis, the MBTA’s commuter rail vendor.

Keolis Commuter Services told the Herald Pigsley, a Beverly resident, was one of “2,000 people hired on” when they took over the contract from Massachusetts Bay Commuter Railroad in July of 2014.

Keolis said in a statement they are “aware of the indictment” and take the allegations “seriously.”

The rail company added they spotted “project anomalies linked with the practices of an employee” in 2021 and “took immediate action to investigate and ultimately suspended and then terminated the employee.”

Keolis added: “Our priority was to ensure that our partners at the MBTA were not harmed in any way, and we reimbursed them for any related goods and services.”

A federal grand jury on Tuesday indicted Pigsley, 58, on 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.

It’s alleged he did this while employed as the assistant chief engineer for facilities for the Paris-based Keolis’ commuter rail operations.

U.S. District Court Magistrate Judge Paul Levenson at the Wedneday afternoon initial appearance in federal court in Boston released Pigsley under personal recognizance and scheduled an initial status conference for May 22 at 11:15 a.m.

John Rafferty, 69, of Hale’s Location, N.H., Pigsley’s alleged co-conspirator and friend, according to the complaint filed in the case, has already agreed to plead guilty to one count of conspiracy to commit wire fraud.

“The criminal conduct alleged here specifically involves the Commuter Rail — the entity Keolis operates for the T — and two men who lied to, cheated and stole from Keolis,” U.S. Attorney for Massachusett Rachael Rollins said. “We allege that the defendants stole over $8 million from Keolis, and that Pigsley did so while an employee of the organization. The $8 million they stole could have been used to ensure significantly safer, faster and more reliable transportation for riders. Instead, these men lined their pockets for their own selfish gain. It is my hope that this prosecution holds these alleged criminals accountable.”

He was responsible for the maintenance of the Commuter Rail Facilities and associated engineering operations, including repairs and project management.

Beginning in 2014, the complaint states, Pigsley directed his friend Rafferty to purchase all sorts of goods for Pigsley, his company the Pigman Group and for the family’s benefit — including vehicle and construction equipment — and to then have Rafferty’s company, LJ Electric, send invoices to Keolis for the balance, with a 10% to 30% profit for Rafferty on top.

In all, prosecutors allege, Rafferty purchased $3 million worth of equipment and was reimbursed $4 million from Keolis.

Those items include nine trucks — only seven are detailed in the document, which are three Ford F550s and four F350s — worth $470,000; at least even Bobcat machines, each of which costs more than $70,000; $110,000 in doors and windows for construction projects including for Pigsley’s own home; and $20,000 in countertop and tiles for Pigsley’s home.

Howie Carr contributed to this story.

BOSTON, MA - December 8: Two MBTA Commuter Rail trains leave South Station on December 8, 2022 in Boston, Massachusetts. (Staff Photo By Matt Stone/MediaNews Group/Boston Herald)

BOSTON, MA – December 8: Two MBTA Commuter Rail trains leave South Station on December 8, 2022 in Boston, Massachusetts. (Staff Photo By Matt Stone/MediaNews Group/Boston Herald)