NJ Contractors Accused of $10M Fraud Over Lead Pipe Replacement in Newark

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“By causing misleading photographs and verification forms to be submitted, Sawyer and Sanders concealed that they intentionally did not replace lead pipes and defrauded Newark by collecting payment for work they did not properly perform,” U.S. Attorney Sellinger said.

Public Health and Financial Consequences

The failure to replace the lead pipes posed serious risks to public health, particularly for children, as any exposure to lead can have detrimental effects. Newark FBI Acting Special Agent in Charge Nelson I. Delgado emphasized the harm caused by the fraudulent actions: “We allege the subjects in this investigation knew they were not replacing the lead pipes, and then passed off misleading photos to conceal the ones they left in the ground.”

Newark Mayor Ras Baraka expressed outrage over the fraud, highlighting the gravity of compromising public health for profit. “It is terrible, especially at this level, because we’re talking about something that is a public health crisis,” Baraka said during a news conference.

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Legal Representation and Potential Penalties

Sawyer and Sanders face severe penalties if convicted, including up to 20 years in prison and fines of $250,000 or double the amount of the profits or losses involved. Their attorneys, Julie Grohovsky and Catherine M. Recker, respectively, had not yet commented on the charges as of Thursday.