WASHINGTON — A former CEO of Virginia Regional Transit, who pleaded guilty to a bribery scheme concerning federal funds back in May, was sentenced to 18 months in prison and more than $80,000 in fines by a judge Friday.
Former CEO of Virginia Regional Transit Mark W. McGregor and former President of Mobile Auto Truck Repair Thomas Ahalt were co-conspirators in a bribery scheme that caused the U.S. government to lose $380,000, according to a news release.
VRT, a not-for-profit 501 (c) (3) organization, is funded by a combination of federal, state and local grants. Mobile Auto, an automobile repair business, provided services to VRT.
Officials said McGregor approved false invoices from Mobile Auto for fraudulent additional weekly charges. A portion of the money paid to Mobile Auto came from funds provided by the Federal Transit Administration, an agency within the U.S. Department of Transportation.
Plea papers show that VRT paid Mobile Auto approximately $380,000 in fraudulent weekly labor charges from January 2007 through December 2015.
In exchange for approving the false invoices, McGregor received regular kickback payments from Ahalt and others associated with Mobile Auto. He received about $190,000 in kickback payments, exactly half of the additional weekly labor charges.
A judge ordered McGregor to pay $380,000 in restitution, $380,000 in forfeiture and an additional $50,000.
