Ex-MARTA Exec Charged In $500K False Invoice Scheme

ATLANTA, GA -- A former MARTA executive ran a false invoicing scheme that defrauded the agency out of more than $500,000, federal officials said this week. An illicit operation by Joseph J. Erves, MARTA’s former Senior Director of Operations, caused the agency to pay more than half a million dollars for maintenance work that was never performed, according to U.S. Attorney John Horn.

What's more, federal prosecutors said that Erves funneled most of the money into his personal bank accounts. (SIGN UP: Get Patch's Daily Newsletter and Real Time News Alerts. Or, if you have an iPhone, download the free Patch app.)

“Erves was entrusted to safeguard the taxpayer funds used to run our public transportation authority, and instead he is charged with stealing a half million dollars to buy a Porsche and other high-end purchases. This is a classic case where a public official’s short-term gain in stealing from taxpayers comes crashing down and ends with criminal charges,” said Horn.

As operations senior director, Erves oversaw the maintenance of MARTA buses and rail cars. He could approve payments up to $10,000 to vendors for did work for the transit agency.

Around 2010, Erves approved contracts with three vendors to do brake systems maintenance, among other things, on MARTA buses. For the next six years, Erves had fake invoices done for more than 40 projects on behalf of the trio of vendors, who did none of the work, Horn said.

The vendors in turn sent the money back to Erves, who deposited into his accounts to use on personal expenses and big-ticket items at high-end department stores, Horn said. Erves even bought a Porsche 911 from the scheme, federal prosecutors allege.

Image via MARTA