FLORHAM PARK — A Newark business owner has admitted to bribing a former city official to secure assistance in acquiring and redeveloping Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.
Frank Valvano, Jr., 57, of Florham Park, pleaded guilty in Newark federal court before U.S. District Judge Madeline Cox Arleo to charges of honest services fraud and bribery.
“As he admitted in court, Frank Valvano, Jr. provided cash, jewelry, and other benefits to a public official in exchange for influence that furthered his private business interests, defrauding the people of Newark of their right to honest services from their officials. This conduct corrupted the official’s independent judgment and violated public trust for personal financial gain,” said U.S. Attorney Sellinger. “We remain committed to working with law enforcement partners to ensure the people of New Jersey are protected from corrupt officials and those who seek to bribe them.”
Details of the Scheme
Valvano admitted to bribing Carmelo Garcia, a former Newark deputy mayor, and director of the Department of Economic and Housing Development (DEHD), as well as executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC, now Invest Newark). In exchange for Garcia’s assistance with real estate matters, Valvano and others provided significant monetary payments and gifts from 2017 through April 2019. Garcia is also a former Hoboken Assemblyman.
According to court records, Valvano and his co-defendant, Irwin Sablosky, gave Garcia cash, and high-end jewelry, and paid for a Miami trip to secure Garcia’s influence. The bribes helped Valvano and Sablosky acquire Newark-owned properties and obtain redevelopment agreements (RDAs) while ensuring Garcia did not act against their interests. Law enforcement records, including text messages and phone logs, revealed extensive communication among the parties, with Garcia arranging to collect bribes. In one instance, Valvano and Sablosky provided Garcia $25,000 in cash in June 2018 through an intermediary.
Legal Penalties
The Travel Act charge carries a maximum penalty of five years in prison, while the bribery charge carries a maximum of ten years. Each charge also carries a potential fine of $250,000 or twice the amount of pecuniary gain. Sentencing for Valvano is scheduled for April 16, 2025.
Co-Conspirators and Prior Guilty Pleas
Valvano was initially charged in October 2021 alongside Sablosky, 64, of Springfield, and Garcia, 49, of Hoboken. Garcia and Sablosky have both pleaded guilty to related charges and await sentencing. Garcia admitted to conspiracy to defraud the city and accepting bribes, while Sablosky pleaded guilty to conspiracy, honest services wire fraud, and bribery.
Investigative Efforts
The case was investigated by special agents from the FBI’s Newark Field Office, IRS-Criminal Investigation, and the U.S. Department of Housing and Urban Development, Office of Inspector General. The investigation was credited by U.S. Attorney Sellinger to the efforts of these agencies, led by their respective leaders.
Assistant U.S. Attorneys Elaine K. Lou, Katherine J. Calle, and Edeli Rivera are prosecuting the case for the U.S. Attorney’s Office Special Prosecutions Division.
Click here to read a copy of the indictment.
