CEO Michael Sawyer, 57, of Burlington, New Jersey, and Latronia Sanders, 55, of Roselle, New Jersey, are each charged by complaint with conspiracy to commit wire fraud.
"As our complaint alleges, Michael Sawyer and Latronia Sanders worked for a company hired by the city of Newark to replace lead pipes, but instead, they intentionally left lead pipes in the ground," U.S. Attorney Philip Sellinger said. "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."
Beginning in 2016, high levels of lead were found in the drinking water in some of Newark's schools.
From 2017 to 2019, periodic testing of Newark's drinking water by the U.S. Environmental Protection Agency and the New Jersey Department of Environmental Protection showed lead levels that were among the highest of any major city in the United States.
In March 2019, Newark announced plans to replace approximately 18,000 lead service lines. The city gave JAS Group Enterprises a $10 million contract to switch the lead pipes for copper ones.
"At several sites, Sawyer and Sanders deliberately instructed workers to leave lead pipes in the ground and then took steps to deceive Newark and others so that they would not find out that lead remained," Sellinger said.
The two are accused of duping the city with misleading photos and documents to get paid for the work that was never done.
The city scoured records to find all the sites where JAS worked in Newark. They found dozens of sites where the work was never done.
The defendants face up to 20 years in prison, along with a hefty fine, if convicted.
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