The suspect is a transit supervisor in the legal division, and she is a widow of a member of the NYPD.
She now is in serious legal trouble and could spend 15 years behind bars if convicted.
Authorities say Jackson was involved with inflating bills submitted to a Brooklyn company, then receiving kickbacks from that very same company.
The 50-year-old has now been suspended from her job with the MTA, where she earned an annual salary of $83,000.
Her neighbors in the Flatland section of Brooklyn say she was "living large."
She reportedly drove a Mercedes Benz, had five flat screen TVs, including one in the bathroom, along with several fur coats.
Jackson was hired to protect the MTA from bogus lawsuits filed by bus and subway riders.