Oct 08, 2024
A construction company whose CEO and foreperson were arrested for their roles in a conspiracy to commit wire fraud in connection with the Newark Lead Service Line Replacement (LSLR) Program, had a contract with the City of Trenton to perform similar work. A United States Attorney’s Office District of New Jersey statement noted Michael Sawyer, 57, of Burlington, and Latronia Sanders, aka “Tee,” 55, of Roselle, are each charged by complaint with conspiracy to commit wire fraud. The complaint alleges Sawyer and Sanders duped Newark officials with fake photographs and documents that showed work had been completed for numerous lead lines. Essentially, JAS received payment for not fulfilling their pledged work. In numerous cases lead pipes were left in the ground. Local concerns grow regarding the possibility that JAS employed similar tactics in the City of Trenton. JAS of Burlington inked a near $8 million deal with Trenton to replace 1200 lead or galvanized steel lines for residences from the water main to the water meter of homes. In February, 2021, East Ward Councilman Joseph Harrison presented a resolution to hire JAS to begin replacement of water lines. West Ward Councilwoman Robin Vaughn voted against the deal while Councilwoman at Large Kathy McBride abstained. Harrison, plus four former council members supported JAS, one of nine companies that offered bids for the extensive project. Trenton Mayor Reed Gusciora signed off on the contract a month after the resolution passed. Trenton remains mired in corruption and investigations as a federal probe found three Health & Human Services employees had misrepresented hours claimed during testing city houses for lead contamination and while delivering meals to residents. Trenton received federal funding from the U.S. Department of Housing and Urban Development under a Community Development Block Grant (CDBG) to provide public services, including a meal program to prepare and deliver meals throughout Trenton to the city’s most vulnerable and needy populations. Members of BEH delivered meals under the CDBG from 2020 to 2021. In addition, Trenton received a $1.9 lead remediation federal grant. Three Behavioral Environmental Health employees  offered guilty pleas and await sentencing. Two others face charges of conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds belonging to and under the care, custody and control of the city of Trenton. Federal investigators allegedly visited Trenton Water Works last week, likely to inquire about work allegedly performed by JAS. The FBI typically does not comment about ongoing investigations. The complaint against Sawyer and Sanders reads: “These defendants allegedly undercut Newark’s lead service line replacement project that sought removal of all lead lines throughout the city,” Special Agent in Charge Tyler Amon with Environmental Protection Agency’s (EPA) Criminal Investigation Division in New Jersey said. “Violators who employ deception to compromise the integrity of important public drinking water related projects will be criminally investigated and held to account.” “The EPA OIG (Office of Inspector General)” an independent organization within the Federal Trade Commission charged with protecting the integrity of agency programs and operations, “is committed to doggedly pursuing criminal activity that targets critical water infrastructure funding,” said Special Agent in Charge Nicolas Evans of the EPA OIG office. “Taking government funds but failing to replace lead service lines defrauds the program and hurts Americans’ access to safe drinking water.” As alleged in the complaint, Sawyer, Sanders, and others intentionally failed to replace all lead pipes at certain locations as required under the terms of the relevant contracts, yet caused the submission of payment applications to Newark falsely representing that JAS completed the work in accordance with the contracts. Sawyer, Sanders, and others submitted false or misleading documents to support payment applications with respect to certain work sites. These materials included photographs that visually represented that the lead replacement was done or was unnecessary, but in fact were taken in a way to conceal that lead pipes were left in place. According to the statement, at other sites where the water service lines already consisted entirely of copper pipes, Sawyer, Sanders, and others conspired to falsely represent that JAS had installed those copper pipes after removing lead pipes. Sawyer, Sanders, and others then caused the submission of fraudulent payment applications for work that JAS never completed, and induced Newark to pay JAS for work that JAS did not perform. The charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, twice the gross profits, or twice the gross loss suffered by the victims of the offense, whichever is greatest. “These defendants allegedly undercut Newark’s lead service line replacement project that sought removal of all lead lines throughout the city,” Special Agent in Charge Tyler Amon with Environmental Protection Agency’s (EPA) Criminal Investigation Division in New Jersey said. “Violators who employ deception to compromise the integrity of important public drinking water related projects will be criminally investigated and held to account.”
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