NJ Businessman Pleads Guilty to Bribery of Former Deputy Mayor

Admits Paying Cash and Gifts for Assistance in Redeveloping Newark-Owned Properties

Newark, NJ — A Newark business owner has admitted to bribing a former city official in exchange for assistance with acquiring and redeveloping Newark-owned properties, U.S. Attorney Philip R. Sellinger announced Wednesday, October 2, 2024. Irwin Sablosky, 64, of Springfield, NJ, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to charges of honest services fraud and bribery.

Sablosky admitted to bribing Carmelo Garcia, who served as both deputy mayor and director of the Newark Department of Economic and Housing Development, as well as executive vice president of the Newark Community Economic Development Corporation (NCEDC), now known as Invest Newark. The bribes were intended to secure Garcia’s assistance in advancing real estate deals beneficial to Sablosky and his business associate, Frank Valvano Jr.

“As he admitted in court, Irwin Sablosky provided cash and jewelry to Carmelo Garcia, a former Newark deputy mayor and director of the Newark Department of Economic and Housing Development in exchange for Garcia’s use of his influence to assist Sablosky’s acquisition of various Newark-owned properties for redevelopment, defrauding the people of Newark of their right to the official’s honest services. He corrupted the public official’s independent judgment and violated the public trust for his own financial gain,” said U.S. Attorney Philip R. Sellinger.

From 2017 to April 2019, Sablosky and Valvano provided Garcia with significant payments and luxury gifts, including high-end jewelry from their pawnbroker and jewelry business, in exchange for favorable treatment. In particular, Garcia used his influence to secure preliminary designation letters and redevelopment agreements (RDAs) that enabled Sablosky and Valvano to acquire Newark-owned properties for redevelopment and prevented any actions that would interfere with their interests.

Phone records and text messages obtained by law enforcement detail extensive communications among Garcia, Sablosky, Valvano, and others during this time, highlighting the scope of the corruption. In June 2018, for example, Garcia received $25,000 in cash from Sablosky and Valvano through an intermediary while serving as acting deputy mayor and DEHD director.

The charge of honest services fraud carries a maximum penalty of 20 years in prison, while the bribery charge carries up to 10 years. Both charges are punishable by a fine of $250,000 or twice the amount of pecuniary gain derived from the offense. Sablosky’s sentencing is scheduled for February 20, 2025.

Sablosky, Garcia, and Valvano were initially charged in October 2021. Garcia has already pleaded guilty to conspiracy and related charges and awaits sentencing, while Valvano's case remains pending. He is presumed innocent unless proven guilty.

The investigation was led by the FBI’s Newark Field Office, IRS-Criminal Investigation, and the U.S. Department of Housing and Urban Development’s Office of Inspector General. The case is being prosecuted by Deputy Chief Elaine K. Lou and Assistant U.S. Attorneys Katherine J. Calle and Edeli Rivera of the Special Prosecutions Division.

The charges and allegations against Valvano are accusations, and he is presumed innocent unless and until proven guilty.