Keolis Engineer Guilty in $8M Fraud Scheme

John P. Pigsley, a former assistant chief engineer at Keolis Commuter Services, pleaded guilty to a scheme that defrauded the company and the IRS of over $8 million. Alongside co-conspirator John Rafferty, Pigsley orchestrated a false invoicing scheme through Rafferty's company, LJ Electric, resulting in Keolis paying more than $4 million for construction equipment and supplies that were never delivered. Additionally, Pigsley directed the purchase of copper wire, which he stole and sold as scrap for over $4.5 million. The schemes took place between 2014 and 2021, and Pigsley failed to pay taxes on his illicit earnings, further structuring financial transactions to avoid detection. Both Pigsley and Rafferty have pleaded guilty, with sentencing scheduled for April 2025, where Pigsley could face significant prison time and financial penalties. The stolen funds were originally intended for the operation of the MBTA Commuter Rail.