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.

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