Ex-Assemblyman From Hoboken Accused Of Bribery Scheme In Newark

NEWARK, NJ — A former New Jersey state assemblyman from Hoboken is one of three people accused of taking part in a “bribery scheme” involving real estate projects in Newark, federal prosecutors announced Thursday.

Carmelo G. Garcia, 45, of Hoboken, has been charged with conspiracy to commit bribery in connection with the business and transactions of a federally funded local government and organization, according to the U.S. Attorney’s Office.

A pair of alleged conspirators who own a pawnbroker and jewelry business, Frank Valvano Jr., 52, of Florham Park, and Irwin Sablosky, 60, of Springfield, were also charged with conspiracy to commit bribery, prosecutors said.

Garcia, a former assemblyman in the 33rd District, previously served as a deputy mayor and director of the Department of Economic and Housing Development in Newark.

Garcia also formerly served as an executive officer with the Newark Community Economic Development Corporation (NCEDC) – now known as Invest Newark – a nonprofit organization that collaborates with the city on real estate projects.

Here’s how the scheme worked, prosecutors alleged:

“From 2017 through April 2019, Garcia sought and received significant monetary payments and other benefits from Valvano, Sablosky and others in exchange for Garcia’s use of his official positions and influence to assist Valvano and Sablosky with securing redevelopment agreements (RDAs) with the City of Newark to purchase and acquire various city-owned properties for redevelopment, including obtaining preliminary designated developer status, and to ensure that Garcia did not act against their interests. In addition to money, Garcia also received jewelry from the pawnbroker and jewelry business that Valvano and Sablosky co-own.”

Prosecutors continued:

“Phone records and text messages obtained by law enforcement document extensive communications among Garcia, Valvano, Sablosky, and others about the bribery scheme, including text messages in which Garcia arranged to personally collect cash provided by Valvano and Sablosky. In one instance, in June 2018, Garcia, then acting deputy mayor and director of the city’s Department of Economic and Housing Development (EHD Department), received an envelope containing $25,000 in cash, supplied by Valvano through an intermediary, in the restroom of a New Jersey restaurant. Text messages obtained by law enforcement show that Garcia used his personal cellular phone to coordinate the location and timing of the meeting. Approximately five days later, the EHD Department issued letters granting preliminary designated developer status for several properties to two limited liability companies controlled by Valvano and Sablosky. Garcia, whose name and official title were also prominently displayed on the letterhead, was copied on both letters.”

Prosecutors continued:

“In text messages, Valvano and Sablosky discussed additional payments of money and jewelry the two had made to Garcia, and also to an associate of Garcia (Individual 1), as well as their ongoing efforts to obtain RDAs with the city to acquire and redevelop additional properties. For instance, on March 31, 2019, Valvano texted Sablosky to complain that Garcia’s associate, who sometimes served as an intermediary between Garcia and Sablosky and Valvano, was “already looking for [more] money.” After observing that “We’ve done nothing but spend tons of money and give away jewelry,” Sablosky noted that “Carmelo [Garcia] wants more too. We can’t afford it . . . We’re a [expletive] money well for these guys to keep coming back to.”

Prosecutors concluded:

“On April 13, 2019, Sablosky also sent text messages to Valvano regarding a meeting he had with Garcia the previous day and his giving Garcia an additional payment of $5,000. Sablosky noted that Garcia had “showed up [at] 5pm last night” to discuss another “RDA” he and Valvano were attempting to obtain from the city. When Valvano asked whether there was “Any mention of $$,” Sablosky responded, “He [Garcia] didn’t just come to visit!! Lol. He got another 5,” referencing the $5,000 payment. Sablosky also told Valvano, “When you get back we have to add everything and sit down with him [Garcia]. I want to get these RDAs through before we start rocking the boat.”

Prosecutors said a count of conspiracy to commit bribery carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss from the offense.

Invest Newark President and CEO Bernel Hall released the following statement in the wake of Thursday’s allegations:

“Invest Newark is fully cooperating with the U.S. Attorney’s Office for the District of New Jersey on their investigation. Since our relaunch as Invest Newark in 2019, we have strengthened our policies and procedures to prevent conflicts of interest and protect against fraud. From overseeing a COVID-19 small business grant program, piloting a Section 8 Homeownership Conversion program, launching Newark’s first cooperatively owned company and more, we take great pride in the future of Newark and we are committed to transparency and accountability.”

The charges against Garcia, Valvano and Sablosky come less than a month after Joseph A. McCallum Jr., a city councilman in Newark's West Ward, was accused of taking part in a "bribery and kickback" scheme involving local construction and real estate projects.

McCallum, 65, was a member of the board of directors at Invest Newark. He’s since been removed from his position, the group said in October.

• See related article: Invest Newark Cuts Ties With Councilman After Bribery Accusation
• See related article: Newark Councilman Should Resign If Bribery Charge Is True, Mayor Says

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