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Michael Sawyer, 57, of Burlington, and Latronia "Tee" Sanders, 55, of Roselle, are each charged by complaint with conspiracy to commit wire fraud, US Attorney Philip R. Sellinger said (click here for the complaint).
Citing charging documents, NJ Advance Media says JAS Group Enterprise Inc. (JAS), the company in which Sawyer and Sanders worked for, billed the City of Newark nearly $10.2 million for the work.
High levels of lead were found in the drinking water in some of Newark's schools back in 2016. Further testing by the U.S. Environmental Protection Agency (EPA) and the New Jersey Department of Environmental Protection (DEP) showed lead levels that were among the highest of any major city in the United States, Sellinger said.
In March 2019, Newark announced plans to replace approximately 18,000 lead service lines within city limits as part of its LSLR Program. Newark hired an engineering firm to oversee the implementation of the program and contractors to complete the replacement work. Among them, JAS. Prior to being hired as a contractor, JAS also worked on the city's Lead Service Line Replacement (LSLR) Program as a subcontractor for another construction company.
Sawyer was the president and chief executive officer of JAS and was responsible for overseeing and managing JAS’s operations. Sanders was employed by JAS as a foreperson of JAS crews assigned to replace lead pipes in Newark during the LSLR Program.
Sawyer, Sanders, and others conspired to defraud Newark and others in connection with JAS’s performance as a contractor and as a subcontractor during the LSLR Program.
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 still submitted payment applications that falsely represented that the work had been done in accordance with the contracts, federal officials said.
Sawyer, Sanders and others would take photographs that showed that the lead replacement was done or was unnecessary, when in reality it had been taken in a way to hide that the lead pipes were left in place, and not truly repaired, Sellinger's office said.
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.
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