Attorney General Matthew J. Platkin and the Office of Public Integrity and Accountability have announced that a Paterson school bus company has pleaded guilty to committing a second-degree crime. The company, A-1 Elegant Tours, also known as Eastern Star Transportation, has agreed to pay a $250,000 penalty and face a ten-year prohibition from engaging in State business.
A-1 Elegant Tours presented its guilty plea on April 28, 2025, in the New Jersey Superior Court, Essex County, before Judge Michael Ravin. The company confessed to making false representations for a government contract under a plea agreement with the Office of Public Integrity and Accountability (OPIA). Shelim Khalique, the principal and owner of A-1 Elegant Tours, represented the company in court. Khalique has also consented to a personal 10-year debarment and entered a Pre-Trial Intervention Program for two years on a charge of falsifying records.
This legal action follows charges initially placed in 2020, leading to the operational transfer of A-1 Elegant’s buses, equipment, and staff to a successor company, American Star Transportation LLC. American Star, under the ownership of Shelim’s brother, Jwel Khalique, has now entered a 10-year agreement requiring independent oversight to ensure compliance with all relevant laws and regulations for student transport services.
This agreement obligates American Star to report bus drivers, aides, and routes assignments weekly, confirmed with legal credentials by the company owner, Jwel Khalique. It requires the company to verify criminal background checks and conduct drug and alcohol testing of its bus drivers, continuing with annual updates of motor vehicle violations to county superintendents.
The agreement also stipulates that Shelim Khalique shall have no involvement in any form with the company’s operations, with any breach necessitating prompt notification to the monitor and OPIA. The oversight entity will provide reports to OPIA bi-annually, while Jwel Khalique submits certifications detailing adherence to compliance standards.
In exchange for this extensive oversight arrangement, charges against American Star and Jwel Khalique have been dismissed without prejudice. However, OPIA retains the right to enforce provisions if breaches of agreement arise.
Attorney General Platkin highlighted that the resolution presents accountability through financial penalties and reinforced monitoring measures. Drew Skinner, Executive Director of OPIA, remarked on the case’s consequences of defrauding school districts and endangering public safety.
A state grand jury had previously returned a superseding indictment alleging similar statutory violations by American Star and its predecessor, A-1 Elegant Tours. Henry Rhodes, involved in both companies, had pleaded guilty to related charges in 2023, consenting to a 10-year business ban with the State of New Jersey.
Corruption Bureau Deputy Chief Frank L. Valdinoto managed the case, supervised by Bureau Co-Directors Jeffrey J. Manis and Eric Gibson, and OPIA Executive Director Drew Skinner.
