NEWARK, NJ – Lamont Baxter, 49, of Newark, has pleaded guilty to seven federal charges connected to a wide-ranging corruption and fraud scheme that included bribing city officials, falsifying municipal documents, and fraudulently acquiring federal COVID-19 relief funds, U.S. Attorney John Giordano announced.
Baxter entered his plea before U.S. District Judge William J. Martini, admitting his involvement in a conspiracy to bribe public officials, including former Newark Councilmember Joseph A. McCallum, Jr. Baxter also acknowledged committing wire fraud and orchestrating document falsification schemes tied to real estate development and construction in Newark. The criminal conduct spanned from 2017 through August 2022.
Acting as an expediter, Baxter facilitated interactions between developers and city agencies for permits, inspections, and approvals. He conspired with developers to pay bribes to Newark officials to expedite official acts, including issuing Certificates of Code Compliance (CCC) and Certificates of Continued Occupancy (CCO). Baxter also admitted to falsely claiming the need to bribe an official to secure a $10,000 cash payment from a developer, which he kept for himself.
In addition to arranging bribes, Baxter directly delivered over $5,000 in cash bribes to then-Councilmember McCallum on behalf of a developer. McCallum pleaded guilty in 2022 to wire fraud and other charges related to accepting bribes while in office.
Beyond bribery, Baxter was involved in creating and distributing falsified municipal documents, such as fake CCCs, CCOs, and “cut-in cards” to misrepresent that properties had passed inspections. These falsified documents were sold to individuals for real estate transactions and securing utility services.
Additionally, Baxter participated in a scheme to defraud the federal Paycheck Protection Program (PPP) by submitting fraudulent applications for pandemic relief funds, obtaining over $40,000 in PPP loans under false pretenses, including a loan for a lounge that he did not control.
The charges carry severe penalties: up to 10 years for bribery, 5 years for conspiracy to bribe, and up to 20 years each for wire fraud and related conspiracy charges. Each count could also carry a fine of $250,000 or twice the financial gain or loss, whichever is greater. Sentencing is scheduled for August 12, 2025, at 11 a.m.
The investigation was led by special agents from the FBI Newark Field Office, IRS-Criminal Investigation, and the U.S. Department of Housing and Urban Development’s Office of Inspector General.
Co-conspirators named in court documents are presumed innocent until proven guilty.
