Bus Company With Mahwah Contract Hired Unqualified Drivers: AG

MAHWAH, NJ — A manager of a bus company that had a contract with an agency overseen by the Mahwah school district pleaded guilty to charges related to employment of unqualified drivers, according to authorities.

Henry Rhodes, 59, of Paterson, pleaded guilty Monday to conspiracy and theft by deception for involvement with two bus companies — A-1 Elegant Tours and American Star Transportation — which allegedly provided false information to school districts about equipment, hiring practices and staff in order to secure contracts to transport students, New Jersey Attorney General Matthew Platkin said.

American Star had contracts with public school districts in Mahwah, River Edge, and Franklin Lakes, among others, Platkin said.

Although American Star did not hold a contract directly with the Mahwah Board of Education, Superintendent Michael DeTuro said, the contracts referenced were through Region 1, a cooperative agency housed in Mahwah that the district oversees. Region 1 — which represents 15 districts in the area, including Mahwah — assists with coordination of transportation of students to placements outside of their home school district.

For the 2022-23 school year, Region 1, DeTuro said, held three contracts with American Star, all of which were canceled upon the learning of allegations in late December.

Investigators said that after A-1 Elegant and its owner Shelim Khalique was indicted on multiple charges in March 2021, assets and employees — including Rhodes — transferred to American Star. That company, owned by Khalique's brother Jwel Khalique, was then accused of engaging in similar misconduct.

Charges against A-1 Elegant, owner Shelim Khalique and manager Rhodes, were first filed in June 2020.

Personnel files seized in 2019 revealed that A-Elegant had employed numerous drivers who did not have valid commercial licenses or required endorsements, had suspended licenses and/or criminal records. It was also alleged that A-1 Elegant employed aides with criminal records, and failed to maintain fingerprinting, background-check and drug-testing records.

“These cases came to light after traffic offenses and in one case, a crash occurred. said Thomas Eicher, Executive Director of the Office of Public Integrity and Accountability. “It is important that those behind these operations are brought to justice.”

Further investigation into American Star showed that, as was the case with A-1 Elegant, documents were submitted to school districts certifying that the company's drivers and aides were properly vetted and licensed, when, in fact, they were not and, in some cases, had criminal backgrounds.

Rhodes, the A-1 manager, was also employed in a supervisory capacity at American Star.

It is alleged that Rhodes' "failure to maintain proper records and purposeful obfuscation of the quality of drivers endangered the lives of school children," the AG's office said.

A-1 and American Star employed more than 30 drivers with criminal convictions, including a registered sex offender. On one occasion, in February 2022, an unlicensed American Star driver, with a pending case for patronizing a prostitute, was pulled over by a River Edge police officer for running a stop sign.

As part of Rhodes' plea agreement, he agreed to be barred from doing business with the state of New Jersey. He cannot submit a bid, enter into any contract, or conduct any business with any board, agency, authority or other body of the state. Prosecutors will recommend a sentence of two concurrent four-year terms in state prison.

“Mr. Rhodes has acknowledged playing a leadership role at these companies that misled and defrauded school districts and put children’s lives in danger,” said Attorney General Matthew J. Platkin. “Now he will be held accountable for not only committing these offenses, but also continuing to engage in the same crimes even after he and his employers were charged the first time.”