U.S. Attorney Philip R. Sellinger | U.S. Department of Justice
A Newark businessman has admitted to bribing a former city official in exchange for assistance with acquiring and redeveloping city-owned properties, according to U.S. Attorney Philip R. Sellinger.
Frank Valvano, Jr., 57, from Florham Park, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court. He was charged with 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 the official’s use of his influence to further Valvano’s private business interests," said U.S. Attorney Philip R. Sellinger. "He corrupted the public official’s independent judgment and violated the public trust for his own financial gain."
Valvano confessed to bribing Carmelo Garcia, who held positions as deputy mayor and director of the Newark 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). The bribes were exchanged for Garcia's assistance with property acquisition and redevelopment.
From 2017 through April 2019, Valvano, Irwin Sablosky, and others provided monetary payments and other benefits to Garcia while he was serving as a high-level Newark official. These actions helped them obtain preliminary designation letters and secure Newark-approved redevelopment agreements (RDAs) for various properties.
In addition to cash payments, Valvano and Sablosky gifted Garcia jewelry from their pawnbroker and jewelry business and covered expenses for a trip to Miami, Florida.
Law enforcement obtained phone records and text messages showing extensive communication between Garcia, Valvano, Sablosky, and others during this period. In June 2018, an intermediary supplied Garcia with $25,000 in cash from Valvano and Sablosky as part of the bribes.
The charges carry significant penalties: up to five years in prison for the Travel Act charge in Count 19 of the indictment; up to ten years for bribery in Count 26; plus fines up to $250,000 or twice the pecuniary gain from the offense. Sentencing is scheduled for April 16, 2025.
Valvano was originally charged by indictment in October 2021 alongside Sablosky from Springfield, New Jersey, and Garcia from Hoboken. Both Garcia and Sablosky have previously pleaded guilty to related charges.
U.S. Attorney Sellinger credited several agencies with leading the investigation: FBI's Newark Field Office under Acting Special Agent Nelson I. Delgado; IRS-Criminal Investigation under Special Agent Jenifer I. Piovesan; U.S. Department of Housing and Urban Development's Office of Inspector General under Special Agent Vicky Vazquez.
The case is being prosecuted by Elaine K. Lou from the Criminal Division along with Katherine J. Calle and Edeli Rivera from the Special Prosecutions Division of the U.S. Attorney’s Office.
