Attorney General launches criminal investigation into Jacksonville Transportation Authority

Ervin Shkulaku/DUANEWS — The Florida Attorney General’s Office has launched an investigation involving the Jacksonville Transportation Authority, issuing a subpoena seeking records related to contracts, spending, tuition programs, scholarships and transit ridership data as the agency deals with a major financial crisis.

The subpoena, issued through the Office of Statewide Prosecution, seeks documents primarily covering the period from October 2023 through October 2025, according to an internal memo from JTA Interim CEO Cleveland Ferguson.

JTA confirmed that it received the subpoena and said it intends to cooperate with investigators.

“The JTA remains committed to transparency and accountability and will provide information as requested throughout this process,” the agency said.

What investigators are looking at

The investigation appears to cover several areas of JTA operations.

Among the records being requested are contracts involving several companies that have worked with JTA, including Dream Builders Consulting, Jones-Worley Designs, Jacobs Project Management Company and Mason Nye Murals.

Investigators are also seeking communications involving former JTA CEO Nat Ford, his wife and the head of an organizational development firm.

Records concerning employee wellness services, including massages, are also being requested, along with information about tuition reimbursement policies, scholarships and related spending.

Another significant part of the subpoena involves JTA’s transit ridership figures, including data connected to NAVI, the agency’s autonomous vehicle program.

Ridership figures can be important because government funding for public transportation can be connected to the number of passengers an agency reports serving.

Jacksonville City Council member Rory Diamond, who serves as the council’s liaison to JTA, said inaccurate ridership reporting could potentially have serious consequences if it resulted in an agency receiving funding to which it was not entitled. Diamond emphasized that he does not know whether that happened at JTA.

Questions surrounding JTA mural contract

One of the contracts now receiving attention involves murals installed at JTA’s Myrtle Avenue Operations Campus.

A previous review by Jacksonville’s Office of Inspector General examined JTA’s procurement of 17 custom murals.

The project was awarded to Brooklyn-based Mason Nye Murals in 2024 for approximately $141,000.

The Inspector General’s report raised concerns about the security of the procurement process. It noted that the winning company’s pricing came unusually close to JTA’s internal cost estimate and included roughly $68,000 for travel, lodging and related expenses.

The Inspector General ultimately closed the preliminary review without opening a full investigation, finding the project’s final cost was reasonable compared with competing bids. However, the report recommended stronger safeguards for future procurement procedures.

Investigation comes during $39 million budget crisis

The state investigation arrives at an especially difficult moment for Jacksonville’s public transportation system.

JTA is working to close an approximately $39 million budget gap.

The authority previously announced significant spending reductions, layoffs and service changes as part of an effort to stabilize its finances.

JTA’s current-year expenses were approximately $178 million, while projected revenue for the new fiscal year beginning October 1 is about $139 million.

The agency has announced cuts to professional-service contracts and administrative positions, while additional reductions have threatened numerous frontline jobs.

Nearly 200 positions have been affected or were expected to be affected as JTA restructures its operations.

Jacksonville officials have also authorized JTA to use up to $30 million in local gas-tax revenue to help meet financial obligations, with the money expected to be repaid over a 10-year period.

The financial problems are already affecting transportation services. JTA has announced plans to suspend Skyway passenger service and pause NAVI service as part of its cost-cutting measures.

What happens next?

JTA Interim CEO Cleveland Ferguson said the agency is preserving potentially relevant records.

Because some of the subpoenaed material involves Ferguson’s own communications, he said JTA’s internal auditor has been assigned to oversee the collection and production of documents.

The investigation adds another level of scrutiny to an agency already facing questions from Jacksonville officials over how it reached its current financial situation.

Importantly, the issuance of a subpoena does not establish that JTA, its current or former executives, or any contractor committed a crime. A subpoena allows investigators to obtain documents and other evidence as they determine whether any laws were violated.

For Jacksonville residents, the investigation could have broader implications because JTA operates public transportation services used across Northeast Florida and receives substantial public funding.

The Attorney General’s investigation is ongoing, and additional details are expected as investigators review the requested records.

Sources: News4JAX, Action News Jax, Florida Times-Union/First Coast News, Jacksonville Office of Inspector General and Jacksonville Transportation Authority.