In a major case involving student safety and government contract fraud, A-1 Elegant Tours, a Paterson, New Jersey-based school bus company, has pleaded guilty to criminal charges for using unqualified drivers to transport students and misleading school districts about safety and hiring practices.
The announcement was made by Attorney General Matthew J. Platkin and the Office of Public Integrity and Accountability (OPIA) on April 28, 2025.
What Did the Company Do?
A-1 Elegant Tours — also known as Eastern Star Transportation — admitted in New Jersey Superior Court (Essex County) to false representation for a government contract, a serious second-degree offense. The company accepted a $250,000 anti-corruption fine and agreed to be banned from state contracts for 10 years.
This means the company cannot do business with the New Jersey government for the next decade.
“This resolution ensures accountability… and that children get to school safely,” said Attorney General Platkin.
“It also ensures school districts and taxpayers are not deceived.”
Owner Faces Charges Too
Shelim Khalique, 55, of Wayne, the owner of A-1 Elegant Tours, personally accepted a 10-year ban from state contracts and entered a 2-year Pre-Trial Intervention Program for falsifying records, which is a fourth-degree crime.
What Happened to the Company?
After A-1 Elegant Tours faced charges in 2020, most of its buses, staff, and equipment were shifted to a new company, American Star Transportation LLC, which is now run by Shelim’s brother, Jwel Khalique, 45, of Totowa.
To continue operating, American Star must now follow a strict 10-year agreement with the state. The company will pay for an independent monitor to ensure it follows all school transport laws.
What Does the Monitoring Involve?
American Star must now:
Provide weekly certified lists of all drivers, aides, and assigned routes
Ensure all workers have valid credentials
Submit reports on driver background checks, drug and alcohol tests, and motor vehicle record updates
Send regular reports to the county school superintendents
Submit semi-annual compliance reports to the OPIA
Ensure that Shelim Khalique has zero involvement in operations
Failure to follow these terms can lead to legal action from the state.
Past and Related Offenses
This legal action follows a larger investigation in which a state grand jury indicted Shelim Khalique, Jwel Khalique, and American Star Transportation on June 28, 2023, for similar violations.
In a related case, Henry Rhodes, 61, of Paterson — a manager for both companies — pleaded guilty in March 2023 to conspiracy and theft by deception. He also received a 10-year ban from working with the state and is scheduled to be sentenced on May 16, 2025.
This case highlights the serious consequences of putting student safety and public trust at risk. It also shows that the State of New Jersey is committed to cracking down on corruption in school transportation services. With tighter monitoring and accountability, the aim is to ensure that children are transported safely and that taxpayers’ money is used responsibly.
