A former Newark deputy mayor who admitted accepting cash, jewelry, and other benefits in exchange for helping developers secure city-owned properties has been sentenced to more than a year in federal prison.
Carmelo Garcia, a former Newark Deputy Mayor and Director of the Newark Department of Economic and Housing Development, was sentenced Wednesday to 12 months and one day in federal prison for his role in a corruption scheme involving bribes and kickbacks tied to redevelopment projects in New Jersey’s largest city.
The sentence was announced by U.S. Attorney Robert Frazer following Garcia’s guilty plea to charges including conspiracy to defraud the City of Newark and the Newark Community Economic Development Corporation (NCEDC) of honest services, honest services wire fraud, and receiving bribes in connection with the business of a federally funded local government and organization.
In addition to the prison term, Garcia, 51, was ordered to serve three years of supervised release.
Prosecutors Detailed Multi-Year Corruption Scheme
According to federal prosecutors, Garcia used his positions as a senior Newark official and as Executive Vice President and Chief Real Estate Officer of the NCEDC, now known as Invest Newark, to benefit two developers seeking access to city-owned properties.
Authorities said that from at least 2017 through April 2019, Garcia sought and accepted significant monetary payments and other benefits from developers Frank Valvano Jr. and Irwin Sablosky.
Prosecutors said the payments were intended to influence Garcia’s actions and reward him for helping advance redevelopment projects involving Newark-owned properties.
According to court records, Garcia assisted the developers in obtaining preliminary designation letters and redevelopment agreements that allowed them to acquire city-owned land for redevelopment projects.
Federal authorities said the benefits were also intended to ensure Garcia would not use his influence or authority against the developers’ interests.
Cash Payments and Luxury Jewelry
The government’s investigation found that Garcia received not only cash but also luxury jewelry through a pawnbroker and jewelry business operated by Valvano and Sablosky.
According to prosecutors, the items included multiple high-end watches and chains.
Investigators also uncovered extensive communications among Garcia, Valvano, Sablosky, and others through phone records and text messages.
Court documents stated that some of those messages showed Garcia arranging to personally collect cash payments.
In one of the most striking allegations detailed by prosecutors, Garcia allegedly accepted $25,000 in cash during a meeting in the restroom of a New Jersey restaurant.
“In June 2018, Garcia, then the City’s Acting Deputy Mayor and Director of the City’s DEHD, received an envelope containing $25,000 in cash, supplied by Valvano through an intermediary, in the restroom of a New Jersey restaurant,” federal prosecutors said.
Co-Defendants Also Pleaded Guilty
Garcia was originally charged in October 2021 alongside Frank Valvano Jr., 57, of Florham Park, and Irwin Sablosky, 66, of Springfield.
Both developers later pleaded guilty to conspiracy to commit honest services wire fraud and bribery.
Federal prosecutors said both men have already been sentenced.
Federal Investigation Involved Multiple Agencies
The case was investigated by the FBI Newark Field Office, IRS Criminal Investigation, and the U.S. Department of Housing and Urban Development Office of Inspector General.
U.S. Attorney Frazer credited the agencies with uncovering the scheme that prosecutors said corrupted Newark’s redevelopment process.
The government was represented by Chief of the Criminal Division Elaine K. Lou, Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division, and Assistant U.S. Attorney Matthew Specht.
Garcia’s sentence marks the latest development in a federal corruption case that exposed improper relationships between public officials and private developers involved in Newark real estate projects.
Key Points
• Former Newark Deputy Mayor Carmelo Garcia was sentenced to 12 months and one day in federal prison for a bribery and kickback scheme.
• Prosecutors said Garcia accepted cash, luxury watches, chains, and other benefits in exchange for helping developers obtain Newark-owned properties.
• One payment allegedly involved Garcia receiving $25,000 in cash inside a New Jersey restaurant restroom while serving as Acting Deputy Mayor.
