The former president and owner of a Montgomery County-based transportation parts supplier could spend years in prison for participating in a long-running bid-rigging scheme involving SEPTA, according to court documents. In July, federal prosecutors charged Hatfield-based Qual-Tran Products Compan y LLC with violating federal antitrust laws, alleging the company conspired with competitors and others to manipulate SEPTA’s bidding process between March 2016 and November 2024. According to court filings, Qual-Tran supplied transportation parts to transit agencies across the country, including SEPTA. Prosecutors said the company, including former president and owner Cathleen Shive, participated in a conspiracy to restrain trade by rigging bids on SEPTA contracts. SEPTA’s procurement process is designed to promote competition and secure the best prices for taxpayers when purchasing parts and equipment for buses, trains and rail systems, prosecutors said. According to prosecutors, Shive coordinated with competitors to submit intentionally losing bids, creating the appearance of competition while steering contracts to a preferred company. Shive joined Qual-Tran in 2011 and became its president and owner in 2024, according to court documents. Federal prosecutors said Qual-Tran and its co-conspirators coordinated bids before SEPTA solicitations closed. In some cases, competing vendors allegedly submitted intentionally losing bids to ensure a predetermined company won a contract, according to the filing. In one example, prosecutors allege Qual-Tran submitted both its own bid and a second bid that falsely appeared to come from another company. According to newly filed court documents, Shive agreed to plead guilty to a charge of conspiring to restrain trade. As part of the plea agreement, Shive could face up to 10 years in federal prison, three years of probation and a fine. “It was a very difficult decision for Cathy to make,” Shive’s attorney, Louis Busico, said. “However, at the end of the day, her family is the most important thing to her, and she did not wish to put them through a trial.” Qual-Tran itself could face a fine of up to $100 million and a term of probation, according to court documents. An attorney for the company declined to comment. A SEPTA spokesperson told NBC10 in July that the employee allegedly involved in the scheme, who was not named in court documents, was no longer with the agency. The scheme involved SEPTA contracts that received federal funding, prosecutors said. A sentencing date had not been scheduled as of Friday. NBC10 investigative reporter David Charns can be reached at [email protected]. ...read more read less