Two men have been charged in an alleged $8 million scheme to defraud the Massachusetts Commuter Rail Service. The two men were employees of the company, Keolis, that operates the Massachusetts Commuter Rail Service.
John Pigsley was charged with wire fraud, conspiracy to commit wire fraud, filing a false tax return, tax evasion and structuring financial transactions to evade reporting requirements. Pigsley pleaded not guilty to the charges and was released. John Rafferty was charged and agreed to plead guilty to one count of conspiracy to commit wire fraud.
Between 2014 and 2021, investigators allege that Pigsley and Rafferty defrauded Keolis of more than $4 million through a false invoicing scheme. Investigators said that Rafferty bought construction equipment, vehicles and other items for Pigsley and a construction company in which he had an interest. The cost was then allegedly recovered by submitting fraudulent invoices to Keolis. Investigators also allege that the fraudulent invoices included a percentage profit that Rafferty kept for himself.
Investigators allege that Pigsley directed Keolis to purchase copper wire, which he sold to scrap metal businesses, keeping the cash. Pigsley collected more than $4.5 million in cash by stealing and scrapping copper wire, according to the documents outlining the charges against him.
Investigators also allege that Pigsley defrauded the IRS by failing to pay federal income taxes on funds he received from the invoicing scheme and from selling the copper wire.
Pigsley is facing up to 20 years in prison for the charges of wire fraud and conspiracy to commit wire fraud plus additional prison time and fines for the other charges. Rafferty faces up to five years in prison on the charge of conspiracy to commit wire fraud.
Conspiracy to commit wire fraud, wire fraud, tax evasion and filing a false tax return are all examples of serious white collar crimes and federal crimes that can carry hefty fines and lengthy prison sentences. At Dhar Law, we have decades of experience fighting the most serious cases in state and federal court. We believe in the accused’s right to a fair trial and building a robust defense for our clients to withstand the most serious charges. If you have been accused of wire fraud, tax fraud, or any serious white collar crime, don’t hesitate to contact our hard-hitting Boston Criminal Defense Attorneys so we can get to work on your case.
