Carmelo Garcia, 51, a former City of Newark official who served as Deputy Mayor and Director of the Newark Department of Economic and Housing Development, was sentenced on June 3 to 12 months and one day in prison. The sentence also includes a three-year term of supervised release for his role in a scheme to obtain bribes and kickbacks from two Newark business owners, according to U.S. Attorney Robert Frazer.
Garcia previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to three counts: 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 related to federally funded local government business.
According to court documents and statements made in court, from at least 2017 through April 2019 Garcia sought and received monetary payments as well as jewelry from Frank Valvano Jr., Irwin Sablosky, and others while serving in high-level city positions. These benefits were given in exchange for using his influence within the city government and NCEDC (now known as Invest Newark) to advance real estate development interests for Valvano and Sablosky. This included obtaining preliminary designation letters, securing redevelopment agreements allowing them to purchase city-owned properties for redevelopment projects, and ensuring Garcia did not act against their interests. Law enforcement obtained phone records showing extensive communication between Garcia, Valvano, and Sablosky, including text messages arranging cash collections. In one instance in June 2018, Garcia received an envelope containing $25,000 cash provided by Valvano through an intermediary at a New Jersey restaurant restroom.
Garcia was originally charged by indictment in October 2021 along with Valvano of Florham Park and Sablosky of Springfield; both pleaded guilty to conspiracy charges involving honest services wire fraud and bribery. Both have since been sentenced.
U.S. Attorney Frazer credited special agents from the FBI’s Newark Field Office under Special Agent Stefanie Roddy; IRS-Criminal Investigation under Special Agent Jenifer L. Piovesan; U.S. Department of Housing & Urban Development Office of Inspector General under Special Agent Shawn A. Rice with leading the investigation that resulted in this conviction.
The Justice Department serves as the principal federal agency for law enforcement with more than 115,000 employees operating across the United States domestically as well as internationally in over 50 countries; it focuses on upholding rule of law while safeguarding civil rights under Attorney General Merrick B. Garland’s leadership since March 11, 2021, according to its official website.