Federal authorities have charged two individuals from a New Jersey construction company with defrauding the city of Newark out of $10.2 million for lead pipe replacement work that was never performed. Michael Sawyer, CEO of JAS Group Enterprise Inc., and Latronia Sanders, a foreperson, are accused of submitting false documentation to the city to conceal their failure to replace lead water service lines with copper pipes, according to a federal complaint.
NJ Contractors Accused Of $10M Fraud : Fraudulent Scheme and Arrests
Sawyer, 57, of Burlington, and Sanders, 55, of Roselle, were charged with conspiracy to commit wire fraud, a crime that carries up to 20 years in prison. The U.S. Attorney for New Jersey, Philip R. Sellinger, announced the charges Thursday, following the pair’s scheduled appearance in federal court before U.S. Magistrate Judge Michael A. Hammer in Newark.
The charges stem from Newark’s large-scale project to replace around 18,000 lead water service lines, which connect homes to the city’s water mains. The initiative began after high levels of lead were detected in Newark’s water supply in 2016, prompting a public health crisis. JAS Group Enterprise was among the contractors hired in 2019 to perform this critical work.
NJ Contractors Accused Of $10M Fraud : Allegations of Fake Reports and Photos
Federal authorities allege that Sawyer and Sanders intentionally left lead pipes in the ground while falsely claiming to have replaced them with copper pipes. To support their deception, JAS submitted fraudulent photographs and verification forms, leading the city to believe the replacements had been completed. In some instances, the company reportedly polished existing copper pipes and passed them off as newly installed replacements.
