FBI is investigating workers who misused funds at SEPTA

The FBI is investigating fraudulent spending at SEPTA, sources with knowledge of the investigation said.

The investigation, first reported by PlanPhilly, began with SEPTA’s internal inspector general months ago, sources said, but was handed over to federal investigators. Within the last month, FBI investigators were gathering evidence at SEPTA’s Woodland Avenue facility, a location where SEPTA’s buildings and bridges work crews are assigned.

The investigation is centered on fewer than a dozen SEPTA managers who embezzled money through agency credit cards in collaboration with an outside vendor, sources said. The amount of money taken could be in the hundreds of thousands of dollars, they said.

PlanPhilly reported that facilities managers were fabricating fraudulent supply and repair invoices generally involved in construction projects. The purchases were never filled, though, and managers and vendors kept leftover money. The subjects of the investigation also are being investigated for taking SEPTA property.

“It’s something we’ve been hearing for at least a couple months now,” said Joe Coccio, secretary-treasurer with the Transit Workers Union Local 234, which represents some classes of SEPTA workers.

SEPTA’s facilities managers have latitude to use agency credit cards on some minor expenses at stores as needed to speed work. It allows them to forgo the delay of a procurement process or traveling to another SEPTA facility to obtain an item.