NEWARK, N.J.--In a sting that involved setting up a bogus insurance brokerage, the FBI on Thursday arrested 11 public officials across New Jersey plus another official's top staffer for allegedly taking cash bribes to influence how public entities awarded contracts.
The defendants are accused of taking bribes ranging from $1,500 to $17,500 apiece to influence how municipalities and school districts awarded insurance brokerage and roofing service contracts, according to a statement by U.S. Attorney Christopher J. Christie in Newark, N.J.
The defendants include two New Jersey Assemblymen, current and former city and school officials, and the chief of staff to the president of the Newark City Council.
As part of the sting, the FBI established phony insurance brokerage and roofing contractor operations that were staffed with government informants and FBI agents, according to Mr. Christie's statement.
The investigation began in mid-2006 when the FBI developed evidence of corruption within the Pleasantville School District. When the undercover agents approached school officials, the officials allegedly accepted bribes and then referred the agents to other public officials in the state, who accepted bribes and directed the agents to additional public officials, according to Mr. Christie's statement.
The defendants were to appear before a U.S. magistrate in Trenton.
The defendants are: Orange Mayor and state Assemblyman Mims Hackett, Jr.; Assemblyman and Passaic County Undersheriff Alfred E. Steele; Passaic Mayor Samuel "Sammy" Rivera; former Passaic City Councilman Jonathan Soto; Passaic City Councilman Marcellus Jackson; Keith O. Reid, chief of staff to the Newark City Council president; and current and former Pleasantville school board members Jayson G. Adams, Maurice "Pete" Callaway--also a Pleasantville City Council member, James T. McCormick, James A. Pressley, Rafael Velez and Louis Mister.
For reprints of this story, please contact Lauren Melesio at 212-210-0707 or email lmelesio@crain.com
