LIRR overcharged more than $1.6M by auto repair shop, MTA inspector general says

The Long Island Rail Road was overcharged more than $1.6 million by an auto shop for vehicle repairs that may or may not have been made, according to the MTA inspector general.

In a report released Thursday, the Office of the MTA Inspector General said the unnamed automotive repair shop invoiced the LIRR roughly $4.5 million more than the railroad's second-highest vendor from June 2022 to June 2024.

"This repair shop couldn’t account for more than a million dollars in parts it claimed to have installed in LIRR vehicles — and the systems designed to catch those discrepancies failed," MTA Inspector General Daniel Cort said in a statement. "This lack of oversight by LIRR exposes the MTA to wasteful payments by unscrupulous vendors."

The shop, which has sought bankruptcy protection, closed in 2025, the report said. But the report goes beyond the individual business, pointing to a lack of oversight by the LIRR Fleet Office and the Fleet Management Firm, which is under contract with the state to review invoices and sign off on repairs, officials said.

Specifically, the report found that neither entity verified whether the repairs were completed, nor did they have the staff expertise to do so. They also did not request supporting documents demonstrating why certain parts were needed and failed to detect overbilling, the audit found. "Neither the LIRR nor the Fleet Management Firm inspected vehicles to ensure that repairs were made," the report said.

The auto shop faced scrutiny after the inspector general's office received an anonymous claim that one of the business’ owners was charging the LIRR excessive rates, the report said. An LIRR employee sent an email soon after that complaint, saying vehicles in need of minor repairs were sent to the shop and often returned with major changes.

Investigators sought a record of repairs done by the business, but the shop could not produce many of them, despite the state Department of Motor Vehicles requiring it to retain the paper trail, the report said.

For instance, investigators examined roughly 1,400 of the shop’s purchase orders from June 21, 2022, to June 21, 2024, according to the report. The business failed to submit invoices for more than 470 parts allegedly installed, totaling more than $1.6 million. For purchase orders that lacked an accompanying invoice, many of the repairs were for amounts higher than $20,000, officials said.

The DMV examined five shop-serviced vehicles, finding that four were improperly invoiced, according to the report.

An administrative law judge determined that the inspector general office's grievances fell short of the necessary burden of proof for the DMV’s charges, the audit said.

Recommendations proposed by the LIRR include hiring a certified mechanic to ensure repairs are appropriate and reasonably priced, according to the audit.

The LIRR said it was making several changes, including modifying job specifications to include a certified mechanic and is looking for a new fleet vendor, the audit said.

"LIRR Fleet Management has strengthened oversight to ensure vendors perform required work to appropriate standards," the railroad said in the report. "Staff now conduct detailed reviews of completed repairs and corresponding invoices to confirm payments are only made for necessary work."

By Tiffany Cusaac-Smith

tiffany.cusaac-smith@newsday.com@T_Cusaac

Tiffany Cusaac-Smith is a general assignment reporter for Newsday. She previously worked at USA TODAY and is an alum of Howard University.