Allegations of Fraud in Newark’s Lead Pipe Replacement Effort
Two New Jersey contractors have been charged with conspiracy to commit wire fraud after federal prosecutors alleged they collected payments for lead pipe replacement work they failed to complete in Newark. Michael Sawyer, 57, of Burlington, and Latronia Sanders, 55, of Roselle, were arrested and accused of submitting fraudulent claims for work on Newark’s aging lead water service lines, according to U.S. Attorney Philip Sellinger.
Newark, like many other cities in the U.S., has been working for years to replace its old lead service lines to improve water safety. The city recently reported the completion of more than 20,000 replacements. However, federal authorities allege that Sawyer, the president and CEO of JAS, a construction and land development firm, and Sanders, a crew foreperson, did not replace all the pipes they were hired to, but still submitted payment requests.
Fraudulent Documentation Submitted
Prosecutors say Sawyer and Sanders submitted false documents, including photos that were meant to show the pipes were either replaced or didn’t need replacement. These fraudulent claims allowed the contractors to collect payments under their $10 million contract with the city for work that was not performed as required.
Efforts to reach JAS for comment have been unsuccessful, and no attorneys for Sawyer or Sanders were listed in court records as of Friday.
City’s Response and Lead Pipe Audit
In a joint statement, Newark Mayor Ras Baraka and New Jersey Department of Environmental Protection Commissioner Shawn LaTourette confirmed they had learned in January that some lines might not have been replaced as expected. This led to an audit of 400 properties, which revealed that 33 still contained some lead pipes. Officials assured residents that those lines have since been replaced.
“At this time, there is no need for Newark residents to take any additional precautions with respect to their drinking water,” the statement read.