FBI agents, in a New Jersey undercover sting, ran a phonyinsurance brokerage operation that was able to bribe publicofficials all over the state to influence contracts, leading to thearrest of 12 people today, federal authorities said.

U.S. Attorney Christopher J. Christies and FBI Special Agent inCharge Weysan Dun announced that among those arrested wereresidents of Passaic, Essex and Atlantic counties--includingmayors, assemblymen, school board and council members and anundersheriff. Some held dual public posts.

Each of the 11 public officials and one associate accepted cashbribes from companies that had been set up to offer insurancebrokerage or roofing services to school districts andmunicipalities, criminal complaints unsealed today revealed.

According to the official announcement, the investigation beganin mid-2006, when the FBI created a brokerage that used two FBIcooperating witnesses and undercover agents to go after corruptionin the Pleasantville School district in Atlantic County. Thecooperating witnesses, who acted as brokers, were not identified byname.

The probe was expanded, it was explained, when some of thePleasantville board members referred the operation to publicofficials in Northern New Jersey, who in turn led them toothers.

Authorities said those charged were captured on video and audiotape during various meetings at which they discussed bribe-takingand accepted thousands of dollars in cash payoffs.

Members of the group were charged with either conspiracy toextort corrupt payments or attempting to extort corrupt payments.Both charges carry a maximum prison term of 20 years.

Those charged were:

o State Assemblyman and Passaic County Undersheriff Alfred E.Steele.

o Passaic Mayor Samuel "Sammy" Rivera.

o Orange Mayor and State Assemblyman Mims Hackett, Jr.

o Former Passaic City Councilman Jonathan Soto.

o Passaic City Councilman Marcellus Jackson.

o Keith O. Reid, Chief of Staff to the Newark City CouncilPresident.

o Current and Former Pleasantville School Board Members: JaysonG. Adams, Maurice "Pete" Callaway (currently a Pleasantville CityCouncil member), James T. McCormick, James A. Pressley, RafaelVelez, and Louis Mister (a private citizen and Callawayassociate).