New Jersey District | Newark businessman admits to bribing former deputy mayor and director of the Newark Department of Economic and Housing Development

NEWARK, NJ – A Newark business owner admitted today that he bribed a former city official in exchange for that official’s assistance in acquiring and redeveloping Newark properties, U.S. Attorney Philip R. Sellinger announced.

Irwin Sablosky, 64, of Springfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of honest services fraud and bribery.

“As he admitted in court, Irwin Sablosky provided cash and jewelry to Carmelo Garcia, a former deputy mayor of Newark and director of the Newark Department of Economic and Housing Development, in exchange for Garcia’s use of his influence to target Sablosky assisting in the acquisition of several Newark properties. properties for redevelopment, depriving the people of Newark of their right to honest public service. He corrupted the public official’s independent judgment and violated the public trust for his own financial gain. Our office will continue to work with our law enforcement partners to ensure that the people of New Jersey are protected from public officials whose greed defeats their sworn duty to serve the people, and from the individuals who bribe these officials.”

American Attorney Philip R. Sellinger

“By bribing a public official, Mr. Sablosky undermined the interests of his community and threatened the trust his citizens have in those who take an oath to serve the public,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field office, said. “IRS-CI is committed to promoting trust in the justice system and holding bad actors accountable.”

“Irwin Sablosky’s selfish actions and serious abuse of power violated the public trust and risked the integrity of the federal process for fair and equitable acquisition of government property to further his own interests,” said Special Agent in Charge Vicky Vazquez. the U.S. Department of Housing and Urban Development, Office of the Inspector General. “HUD OIG remains steadfast in its commitment to working with our prosecutorial, law enforcement and oversight partners to aggressively prosecute individuals who engage in activities that threaten the integrity of HUD programs.”

According to documents filed in the case and statements made in court:

Sablosky admitted that he bribed Garcia – who also served as executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) – in exchange for Garcia’s assistance in acquiring and redeveloping city-owned properties.

According to documents filed in the case and statements made in court:

From 2017 through April 2019, Sablosky, Frank Valvano Jr. and others made significant monetary payments and other benefits to Garcia while he served as a high-ranking Newark official, and before that as executive officer of the NCEDC (now known as Invest Newark), in exchange for Garcia’s use of his official positions and influence within the city Newark and the NCEDC to advance real estate development issues of interest to Sablosky and Valvano. These matters included obtaining preliminary designation letters for Sablosky and Valvano and securing Newark-approved redevelopment agreements (RDAs) that allowed them to purchase and acquire several Newark properties for redevelopment, and to ensure that Garcia did not lose his influence and authority would use to perform. In addition to cash, Sablosky and Valvano Garcia also donated jewelry, including several luxury watches and necklaces, from their pawnbroker and jewelry business.

Phone records and text messages obtained by law enforcement authorities show extensive communications between Garcia, Valvano, Sablosky and others during this period, including text messages in which Garcia arranged to personally pick up cash provided by Sablosky and Valvano. In one instance, in June 2018, Sablosky and Valvano, through an intermediary, supplied Garcia, then acting deputy mayor and director of the city’s DEHD, with $25,000 in cash as part of the stream of bribes provided to Garcia.

The honest services fraud charge in count 18 of the indictment carries a maximum penalty of 20 years in prison. The bribery charge in count 26 carries a maximum penalty of 10 years in prison. All charges are punishable by a fine of $250,000 or twice the amount of the monetary gain from the violation. Sentencing is scheduled for February 20, 2025.

Sablosky was originally charged in October 2021 in indictments against Valvano, 56, of Florham Park, New Jersey, and Garcia, 59, of Hoboken, New Jersey. Garcia previously pleaded guilty to conspiracy to defraud the City of Newark and the NCEDC of Garcia’s honest services fraud, and receiving bribes in connection with the activities of a federally funded local government and organization, pending sentencing. Valvano’s case is pending before Judge Arleo, and he is presumed innocent unless proven guilty.

U.S. Attorney Sellinger credited special agents from the FBI’s Newark Field Office, led by Acting Special Agent in Charge Nelson I. Delgado; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to today’s guilty plea .

The government is represented by Elaine K. Lou, Deputy Chief of the Criminal Division, and Katherine J. Calle and Edeli Rivera of the U.S. Attorney’s Office’s Special Prosecutions Division.