Business & Tech
Newark Business Owner Bribed Former City Official, Pleads Guilty
A Newark business owner has admitted to bribing ex-deputy mayor Carmelo Garcia in connection with a real estate scheme, prosecutors said.
NEWARK, NJ — A Newark business owner has admitted to bribing former deputy mayor Carmelo Garcia in connection with a real estate scheme, federal prosecutors announced Wednesday.
Irwin Sablosky, 64, of Springfield, pleaded guilty to two counts of an indictment charging him with honest services fraud and bribery, according to the U.S. Attorney’s Office.
Prosecutors said that Sablosky admitted bribing Garcia – who was also executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) – in exchange for Garcia’s assistance with the acquisition and redevelopment of city-owned property.
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Garcia, a former New Jersey state assemblyman from Hudson County, pleaded guilty in June to several counts in the long-running bribery case. See Related: Ex-Newark Deputy Mayor Admits To Real Estate Bribery Scheme
Prosecutors released the following allegations involving the case against Sablosky:
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“From 2017 through April 2019, Sablosky, Frank Valvano Jr., 56, of Florham Park, and others provided significant monetary payments and other benefits to Garcia while he was serving as a high-level Newark official, and prior to that, as an 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 of Newark and the NCEDC to advance real estate development matters 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 various Newark-owned properties for redevelopment, and to ensure that Garcia did not use his influence and authority to act against their interests. In addition to cash, Sablosky and Valvano also gifted Garcia jewelry, including multiple high-end watches and chains, from their pawnbroker and jewelry business.”
Prosecutors continued:
“Phone records and text messages obtained by law enforcement show extensive communication between Garcia, Valvano, Sablosky, and others throughout this period of time, including text messages in which Garcia arranged to personally collect cash provided by Sablosky and Valvano. In one instance, in June 2018, Sablosky and Valvano, through an intermediary, supplied Garcia, then the city’s acting deputy mayor and director of the city’s DEHD, $25,000 in cash as part of the stream of bribes provided to Garcia.”
Sablosky originally was charged by indictment in October 2021 with Valvano and Garcia. Valvano’s case is pending, and he is presumed innocent unless and until proven guilty, prosecutors said.
The honest services fraud charge in count 18 of the indictment carries a maximum potential 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 pecuniary gain from the offense, prosecutors said.
Sentencing is scheduled for Feb. 20, 2025.
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