MBTA kickback schemes

Barry Locke
Occupation(s)	Massachusetts Secretary of Transportation, MBTA Chairman
Years active	1979–1981
Known for	Orchestrating kickback operations within the MBTA; convicted on bribery charges

Between 1980 and 1981, Massachusetts Secretary of Transportation and MBTA Chairman Barry Locke alongside Frank J. Walters, Jr., Assistant Director of the MBTA's Real Estate Department, orchestrated multiple kickback operations within the MBTA. The illicit activities came to light when James O'Leary, newly appointed MBTA General Manager, inadvertently opened an envelope meant for Locke that contained illegal funds. Seventeen individuals and one corporation were subsequently indicted. Locke was found guilty on five bribery charges and received a prison sentence ranging from 7 to 10 years, marking him as the sole Massachusetts cabinet secretary convicted of a felony while holding office since 1970.

Background

In 1979, Governor Edward J. King designated Barry M. Locke as Massachusetts Secretary of Transportation. The following year, Locke assumed the role of acting chairman of the MBTA. Upon taking leadership, he appointed his associate Frank J. Walters, Jr. to serve as Assistant Director of the MBTA's Real Estate Department. A restructuring of the MBTA in 1981 mandated that Locke delegate daily operational responsibilities to a general manager; after a three-month selection process, James O'Leary was chosen for this position.

Exposure

On April 30, 1981, Walters attempted to deliver a kickback payment from an advertising firm but failed to meet with Locke and instead left an envelope marked "To Jim O'Leary For B.M.L." on O'Leary’s desk, anticipating that he would forward it to Locke. However, O'Leary mistakenly opened the envelope and discovered cash accompanied by instructions about undervaluing MBTA property sales. Later that day, O'Leary handed over the money and envelopes to Massachusetts Attorney General Francis X. Bellotti.

The following day, during a meeting, O'Leary returned the envelopes containing the cash to Locke, who then pocketed the money while asserting it was repayment for a personal loan previously extended to Walters. Shortly thereafter, assistant attorney general Stephen R. Delinsky and state troopers conducted a search of Locke’s office and confiscated pertinent evidence. Following notification of the investigation by Governor King, Locke was placed on unpaid leave.

Walters was arrested at O'Leary’s office and admitted that the funds originated from several kickback schemes he and Locke had operated within the MBTA. He provided an extensive 96-page confession that initiated broad investigations involving various MBTA employees and business leaders. In exchange for his cooperation, Walters received assurances including no recommended jail time, help securing employment, police protection during inquiries, and options for relocation or identity change if necessary—partly motivated by his ongoing adoption process with his wife.

Indictments

On July 17, 1981, Barry Locke along with eight others—including his brother Alan—were indicted amid an Attorney General probe into kickback activities at the MBTA. A total of seventeen individuals plus one corporation faced charges connected to these schemes:

Name	Position	Charges
APCOA, Inc.	Parking-lot management company	One count of making a corporate campaign contribution
John F. Becka	Regional general manager for New England at APCOA, Inc.	One count each of making a corporate campaign contribution and violating campaign contribution laws
MaryAnne Blume	Co-owner of T.J. Blume and Sons contracting firm	Two counts each of bribery and conspiracy to commit bribery
Thomas Blume	Co-owner of T.J. Blume and Sons contracting firm	Two counts each of bribery and conspiracy to commit bribery
William R. Buckley	MBTA project manager overseeing South Station renovation	Two counts each involving bribery, conflict of interest, and related conspiracies
James L. Champigny	Alcoholism counselor in MBTA personnel unit	One count of bribery
Joseph Damore	Co-owner of Dollar Rent-A-Car at Logan Airport	One count of bribery
Suzanne T. Harwood	Assistant project manager for MBTA South Station project	Two counts each involving bribery, conflict of interest, and related conspiracies
Walter Henneberry	Manager of concessions within MBTA real estate department	One count violating campaign-contribution law
Dennis January	Former CFO for MBTA Commuter Rail system	One count of soliciting and accepting bribes
Gary A. Lockberg	Pharmacist operating pharmacy concessions at South Station	One count of bribery
Alan Locke	Airline industry publisher; brother to Barry Locke	Five counts of bribery; one count larceny; two counts conspiracy to commit bribery; one count conspiracy to commit larceny
Barry Locke	Massachusetts Secretary of Transportation; chairman of MBTA	Nine counts bribery; three counts larceny; multiple conspiracies involving bribery and larceny
Richard J. Ray	Co-owner of Dollar Rent-A-Car at Logan Airport	One count bribery
David M. Smith	President of Amasoy, Inc., parking lot management	One count bribery
Thomas P. Snelders	MBTA engineer	Multiple counts including bribery, conflict of interest, and related conspiracies
Robert Tatel	Boston attorney representing MBTA	Six counts bribery; two conspiracy counts
Frank J. Walters, Jr.	Assistant director in MBTA real estate division	Five counts conspiracy to commit bribery and larceny

Walters' testimony

At Barry Locke's trial, Delinsky accused him of orchestrating a dozen kickback operations that generated approximately $60,000 between October 1980 and May 1981. Walters provided testimony detailing several instances:

• William R. Buckley, Suzanne T. Harwood, and Thomas P. Snelders, who were covert partners in a pharmacy business, agreed to pay Locke and Walters $15,000 in exchange for a drugstore concession located at South Station.
• Alan Locke received kickbacks amounting to $1,000 and $500 from the demolition of MBTA properties in Roslindale and Holbrook; these payments were shared with Walters and another individual.
• Locke directed Walters to recommend Robert Tatel to a group acquiring MBTA land in Canton; subsequently, Locke, Tatel, and Walters divided a $3,000 legal fee.
• Locke participated in a scheme where Tatel was paid $8,000 by Amasoy, Inc., which operated seven MBTA parking facilities, to secure favorable contract modifications with the MBTA.
• Locke prevented Governor King from granting an MBTA advertising contract to a political ally and then collaborated with the president of New York Subway, Inc. to employ Tatel; they manipulated bid requirements so that New York Subway would prevail. Tatel’s $25,000 legal fee was split among Walters and Locke.
• He requested a $2,000 bribe from Joseph Damore and Richard J. Ray for a car rental concession at South Station, sharing the illicit payment with Locke.
• Walter Henneberry, an aide, sought a $2,000 illegal campaign contribution from APCOA through its regional manager John Becka; after diverting part for himself and Walters, he gave $500 to Locke.
• In response to complaints about the Route 128 MBTA parking lot’s condition, Locke suggested potential personal profit. Alan Locke engaged contractor T.J. Bloom and Sons for repairs costing $2,100 but inflated the price by $2,000; this surplus was divided among the Lockes and Walters.

Other testimonies

James L. Champigny testified that he paid Walters $5,000 to obtain an alcoholism counselor position with the MBTA. Dennis January stated that Walters gave him $125 as a bribe to approve a demolition project benefiting a contractor favored by Walters. Gail and Gary Lockberg testified about their partnership agreement with Buckley, Harwood, and Snelders in a South Station pharmacy concession where Walters demanded $15,000. Henneberry acknowledged that Walters received $2,000 from APCOA but claimed it was Walters’ idea to deposit the funds and issue checks under their names. Ralph Miller, who installed carpets for the MBTA, testified that he and Walters agreed to increase the carpet cleaning contract price by $1,500; this amount was then divided three ways with Locke. Jackie Hunt, an assistant to Locke, said she was instructed by him to retain paperwork until payment was made.

Locke's defense

Locke depicted himself as an overwhelmed chief executive who delegated authority to subordinates such as Walters and frequently signed contracts without fully reviewing them. He asserted that the sole money received from Walters was a repayment of a $1,000 loan delivered by O'Leary.

Locke conviction and sentencing

On February 2, 1982, Locke was found guilty on five counts related to conspiracy involving bribery and larceny, marking him as the first Massachusetts Cabinet Secretary convicted of a felony while in office since 1970. Remaining charges were dismissed after he agreed not to file an appeal.

The prosecution recommended incarceration for four to five years. Judge Rudolph Pierce criticized Locke’s "insatiable appetite" for illicit payments and considered the recommendation insufficiently severe; he sentenced Locke to seven to ten years at Walpole State Prison. Subsequently, Pierce adjusted the sentence down to six to ten years due to an error regarding parole eligibility calculations.

Other cases

James Champigny agreed to enter a guilty plea; however, Judge Pierce postponed his case for six months to prevent a criminal record for the cooperating individual. If Champigny avoided further legal issues during this period, the charges would be dropped. Similarly, the cases involving Dennis January, Richard J. Ray, Joseph Damore, and David M. Smith were also deferred.

Tatel admitted guilt on three bribery charges and was sentenced to one year in jail, serving four months while eight months were suspended, along with two years of probation and a requirement to complete 500 hours of community service. Alan Locke also pleaded guilty to bribery and was given a suspended sentence, whereas Thomas J. Blume received one year of probation following his guilty plea.

Buckley, Harwood, and Snelders each entered no contest pleas on conflict of interest allegations, resulting in six-month suspended sentences for all three.