FBI Arrest Twelve in New Jersey Insurance Sting

The FBI arrested 11 public officials and an official’s top staffer in New Jersey after setting up sting that established a bogus insurance brokerage. The arrested persons alleged are accused of accepting bribes ranging from $1,500 to $17,500 each 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.

Published on September 7, 2007

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.

The FBI established phony insurance brokerage and roofing contractor operations as part of a sting that included staff with government informants and FBI agents. 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. They 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.