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Boston Herald
Boston Herald
5 Apr 2023
Flint McColgan


NextImg:Keolis rail engineer indicted for alleged $8M fraud scheme

The feds have charged the assistant chief engineer of facilities for the company that runs the MBTA’s commuter rail system with 17 counts in relation to an alleged fraud conspiracy that siphoned $8 million from the commuter rail.

A co-conspirator in the alleged grift  has agreed to plead guilty, prosecutors say.

A federal grand jury on Tuesday indicted John P. 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. He is scheduled to appear in court on the charges this afternoon.

His 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.

“There is perhaps no single state agency that impacts the daily lives of the millions of people who live and work in the greater Boston area more than the MBTA. Over the last few years, T ridership has had to endure its fair share of both acute and chronic issues. Today, unfortunately, we add fraud to that list,” U.S. Attorney for Massachusetts Rachael Rollins said in a statement Wednesday.

“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,” she continued. “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.”

— This is a developing story