By: Richard L. Smith
According to a statement released by the New Jersey Attorney General’s Office, a Paterson-based school bus company admitted to criminal misconduct this week after putting unqualified drivers behind the wheel and deceiving school districts about the safety of its operations.
Officials said A-1 Elegant Tours, also known as Eastern Star Transportation, entered a guilty plea on April 28, 2025, before Superior Court Judge Michael Ravin in Essex County. 
Under a plea agreement, the company pleaded guilty to making false statements in securing a government contract, a second-degree offense.
As part of the deal, A-1 Elegant agreed to pay a $250,000 anticorruption penalty and is barred from conducting business with the State of New Jersey for the next 10 years.
The company's owner, Shelim Khalique, 55, of Wayne, provided the factual basis for the company's plea and will also personally face a decade-long debarment from state contracts.
Khalique has been admitted into a Pre-Trial Intervention Program for two years on a related charge of falsifying records.
The investigation revealed that after A-1 Elegant was charged in 2020, many of its buses, assets, and employees were transferred to a new company, American Star Transportation, owned by Khalique's brother, Jwel Khalique.
As part of a separate agreement to resolve the case, American Star has agreed to operate under strict oversight by an independent monitor for the next decade.
The monitoring arrangement will require American Star to submit weekly reports verifying that all drivers and aides are properly credentialed.
The company must also confirm that criminal background checks and drug and alcohol testing protocols are being rigorously followed.
Should any violations occur, the Office of Public Integrity and Accountability (OPIA) retains the right to revoke the agreement and pursue prosecution.
“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 Matthew Platkin.
Officials emphasized that the measures will help safeguard schoolchildren and taxpayers alike.
In related proceedings, Henry Rhodes, 61, a manager involved with both A-1 Elegant and American Star, pleaded guilty in 2023 to conspiracy and theft by deception charges.
Rhodes, like the Khalique brothers, faces a 10-year ban from doing business with the state, with sentencing scheduled for May 16, 2025.
Authorities stressed that the case demonstrates serious consequences for those who jeopardize public safety and defraud school systems.