North Jersey School Bus Company Operator Indicted For 2nd Time

PATERSON, NJ — The Paterson-based operator of two school bus companies who was previously indicted in 2020 for allegedly using unqualified drivers to operate school buses and misleading public school districts has been indicted again, state officials said.

A state grand jury returned a superseding indictment on Wednesday in the case, which includes allegations that Shelim Khalique, 53, of Wayne, continued to operate school buses in Paterson and elsewhere with unqualified drivers, even after his original indictment, through another school bus company.

The superseding indictment adds a new count of second-degree theft of services after the school buses allegedly racked up roughly $75,000 in outstanding toll fees from New Jersey Turnpike Authority, New Jersey Attorney General Platkin said.

“As more allegations emerge about these bus companies and their management, increasingly a picture emerges of businesses allegedly under the impression that rules and requirements could be shrugged off at will,” Platkin said in a statement. “We previously alleged that this operation ignored its responsibilities to school districts and students. Now we are learning the business and its managers allegedly opted not to pay highway tolls that countless other law-abiding drivers in New Jersey pay daily.”

The new indictment also charges Shelim’s brother, Jwel Khalique, 44, of Totowa, and American Star Transportation LLC, a bus company that inherited most, if not all, of the buses, employees and assets belonging to A-1 Elegant Tours Inc., which was the company initially charged in June 2020.

After the June 2020 indictment, the equipment, assets and employees of A-1 Elegant were transferred to a different company, American Star, owned by Jwel Khalique, state officials said.

Some employees of American Star hired to transport students were not properly licensed and, in some cases, had criminal convictions or were under criminal investigation, state officials said.
Several of the drivers had suspended licenses, according to investigators with the Office of Public Integrity and Accountability (OPIA); even though mandatory records of fingerprinting, background checks, and drug testing were incomplete, drivers were still permitted to drive students, state officials said.

Shelim Khalique, Jwel Khalique and A-1’s manager, Henry Rhodes, are also accused of lying to school districts to cover up the fact that the company hired unqualified drivers, did not conduct mandatory drug testing and criminal background checks for drivers and aides and operated unsafe buses, which all reportedly violate contract terms and state requirements, state officials said.

Shelim and Jwel Khalique were arrested in December on charges that included conspiracy, false representation for a government contract and theft by deception; Rhodes, 59, of Paterson, pleaded guilty in March 2023 in state Superior Court in Essex County to second-degree conspiracy and two counts of second-degree theft by deception for conduct stemming from his involvement with the two bus companies, state officials said.

"This company’s fleet of buses was allegedly getting a free ride on the Parkway and the Turnpike at the expense of the Turnpike Authority and other motorists,” said Thomas Eicher, Executive Director, Office of Public Integrity and Accountability (OPIA). “A-1 Elegant acted as if it was exempt from obligations the rest of us take for granted. Hopefully this indictment will make it clear that no company can simply ignore its obligations.”

The investigation is being conducted by the New Jersey State Police Official Corruption Bureau, North Unit and the OPIA Corruption Bureau.