A former executive at Keolis Commuter Services was sentenced in federal court for defrauding both the company and the IRS of millions of dollars. John P. Pigsley, who previously served as Assistant Chief Engineer of Facilities for Keolis, received a 70-month prison sentence. The sentencing by U.S. District Court Judge Indira Talwani also includes three years of supervised release, restitution payments, forfeiture of properties, and a large monetary judgment.
Pigsley admitted to orchestrating multiple fraudulent schemes between 2014 and November 2021. Along with his co-conspirator John Rafferty, the general manager of an electrical supply vendor, Pigsley engaged in a false invoicing operation that defrauded Keolis of $4 million. Keolis, managing the MBTA commuter rail system since 2014, paid Rafferty's company over $17 million during this period. Rafferty procured various items for Pigsley, which were then billed to Keolis through false invoices.
Additionally, Pigsley embezzled copper wire ordered by Keolis and sold it to scrap metal businesses, personally profiting by more than $4.5 million. He further failed to declare income gained from these schemes, resulting in more than $2.6 million in taxes owed to the IRS, and filed a false tax return in 2016. Pigsley's banking activity, including nearly $1.9 million in cash deposits, also contravened currency reporting laws.
The case was a joint effort by several government entities. United States Attorney Leah B. Foley, with officials from the FBI, IRS, and the U.S. Department of Transportation, announced the sentencing. The prosecution was handled by Assistant U.S. Attorneys Kristina E. Barclay and Raquelle Kaye.
John Rafferty, having pleaded guilty to conspiracy to commit wire fraud, is scheduled for sentencing on May 15, 2025.