You are here

Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Virginia

FOR IMMEDIATE RELEASE
Monday, May 16, 2016

Former CEO of Virginia Regional Transit Pleads Guilty to Bribery

ALEXANDRIA, Va. – Mark W. McGregor, 63, of Charles Town, West Virginia, pleaded guilty today to bribery concerning federal program funds for his role in a bribery scheme that caused $380,000 in losses to the U.S. government. 

According to the statement of facts filed with the plea agreement, McGregor served as the chief executive officer of Virginia Regional Transit (VRT), a not for profit 501(c)(3) organization that provides transportation services throughout Northern Virginia.  VRT is funded by a combination of federal, state and local grants, including from the U.S. Department of Transportation.  McGregor engaged in a bribe scheme with co-conspirator Thomas Ahalt, then President of Mobile Auto Truck Repair (Mobile Auto), an automotive repair business in Purcellville, since 2007.  Mobile Auto provided automotive repair services to VRT.

According to plea papers, from January 2007 through December 2015, Mobile Auto submitted—and McGregor caused to be approved—false invoices for additional weekly labor charges. McGregor approved and VRT paid to Mobile Auto approximately $380,000 in fraudulent additional weekly labor charges.  A portion of the monies VRT paid to Mobile Auto were federal program funds originating from the Federal Transit Administration, an agency within the U.S. Department of Transportation.  In exchange, McGregor received regular kickback payments from Ahalt and others associated with Mobile Auto totaling half of the additional weekly labor charges.  In total, McGregor received approximately $190,000 in kickback payments.

On April 6, 2016, Ahalt pleaded guilty to conspiracy to commit bribery concerning federal program funds for his role in the scheme.  He is scheduled to be sentenced on June 2, and McGregor is scheduled to be sentenced on September 9.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Floyd Sherman, Regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.  Assistant U.S. Attorney Uzo Asonye is prosecuting the case.

Individuals with information related to public corruption in Northern Virginia should call the FBI public corruption hotline at 703-686-6225 or e-mail NOVAPC@ic.fbi.gov.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-113.

Topic: 
Public Corruption
Updated May 16, 2016