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

U.S. Attorney Christopher J. Christies and FBI Special Agent in Charge Weysan Dun announced that among those arrested were residents of Passaic, Essex and Atlantic counties--including mayors, assemblymen, school board and council members and an undersheriff. Some held dual public posts.

Each of the 11 public officials and one associate accepted cash bribes from companies that had been set up to offer insurance brokerage or roofing services to school districts and municipalities, criminal complaints unsealed today revealed.

According to the official announcement, the investigation began in mid-2006, when the FBI created a brokerage that used two FBI cooperating witnesses and undercover agents to go after corruption in the Pleasantville School district in Atlantic County. The cooperating witnesses, who acted as brokers, were not identified by name.

The probe was expanded, it was explained, when some of the Pleasantville board members referred the operation to public officials in Northern New Jersey, who in turn led them to others.

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

Members of the group were charged with either conspiracy to extort 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 Council President.

o Current and Former Pleasantville School Board Members: Jayson G. Adams, Maurice "Pete" Callaway (currently a Pleasantville City Council member), James T. McCormick, James A. Pressley, Rafael Velez, and Louis Mister (a private citizen and Callaway associate).

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