Paterson School Bus Company Pleads Guilty to Using Unqualified Drivers

Successor Firm to Undergo a Decade of State-Mandated Monitoring After Asset Transfer and Allegations of Continued Violations; Co. faces $250K Fine and 10-Year State Ban

A Paterson-based school bus company, A-1 Elegant Tours, pleaded guilty on April 28, 2025, to criminal charges for using unqualified drivers to transport students and misleading school districts about its hiring and vehicle safety practices, according to an announcement from Attorney General Matthew J. Platkin and the Office of Public Integrity and Accountability (OPIA).

During a hearing before Judge Michael Ravin in New Jersey Superior Court in Essex County, A-1 Elegant Tours — also operating under the name Eastern Star Transportation — admitted to making false representations for a government contract, a second-degree offense. Under a plea agreement, the company agreed to pay a $250,000 anti-corruption penalty and accept a 10-year debarment from securing government contracts within the State of New Jersey.

“This resolution ensures accountability, including a steep financial penalty, for this crime, and that State government contracts will be off-limits to the primary offenders well into the future,” said Attorney General Platkin. “This case has also resulted in stringent, independent monitoring to ensure that children get to school safely and that school districts and taxpayers are not deceived and taken advantage of.”

Shelim Khalique, 55, of Wayne, owner and principal of A-1 Elegant Tours, provided the factual basis for the plea on behalf of the company. In addition to the company’s penalties, Khalique personally agreed to a 10-year debarment from government contracts and entered the Pre-Trial Intervention Program for two years on a fourth-degree charge of falsifying records.

Following the original charges filed against A-1 Elegant Tours in 2020, ownership of much of the company’s assets, buses, equipment, and employees transitioned to American Star Transportation LLC, operated by Khalique’s brother, Jwel Khalique, 45, of Totowa. As part of the legal resolution, American Star has entered into a stringent 10-year monitoring agreement with the State. Under this agreement, the company must retain, at its own cost, an independent monitor to ensure compliance with state laws regulating student transportation.

The monitoring terms require American Star to provide weekly certified lists of all drivers, aides, and their assigned routes, to verify that all personnel possess the legally required credentials. Additionally, the company must report driver background checks, drug and alcohol testing results, and annual motor vehicle record updates to the respective county school superintendents where it operates.

The agreement further mandates that Shelim Khalique have no direct or indirect involvement with American Star’s operations. The independent monitor will submit semi-annual compliance reports to OPIA, and Jwel Khalique must issue corresponding certifications. Failure to meet the agreement’s requirements could prompt OPIA to revoke the deal and proceed with prosecution.

“Defrauding school districts and putting public safety at risk carries consequences, as this case reflects,” said Drew Skinner, Executive Director of the Office of Public Integrity and Accountability.

The resolution follows a broader investigation, in which a state grand jury returned a superseding indictment on June 28, 2023, against Shelim Khalique, Jwel Khalique, and American Star Transportation for alleged misconduct similar to that committed by A-1 Elegant Tours.

In a related development, Henry Rhodes, 61, of Paterson, a manager affiliated with both bus companies, pleaded guilty in March 2023 to conspiracy and theft by deception charges. Rhodes agreed to a 10-year debarment from doing business with the State and is scheduled for sentencing on May 16, 2025.

The plea agreements and subsequent monitoring measures are part of an ongoing initiative by the OPIA Corruption Bureau to ensure public trust and the safety of students in New Jersey's school transportation systems.