A former government official in Newark, New Jersey, admitted to his role in a bribery conspiracy where he rewarded local business owners with the acquisition and redevelopment of city-owned properties after receiving cash and gifts.
Carmelo G. Garcia served as deputy mayor and director of the Newark Department Economic and Housing Development (DEHD) and was also the executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC). From 2017 through April 2019, Garcia sought and received significant monetary payments and other benefits from Frank Valvano Jr., Irwin Sablosky, and others 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 Valvano and Sablosky.
In addition to cash, Garcia also received jewelry, including multiple high-end watches and chains, from Valvano and Sablosky’s pawnbroker and jewelry business.
Garcia pleaded guilty to three counts of an information charging him with conspiracy to defraud the city of Newark and the NCEDC of Garcia’s honest services, honest services wire fraud, and receiving bribes in connection with the business of a federally funded local government and organization. The honest services fraud conspiracy and honest services fraud charges in Counts One and Two each carry a maximum potential penalty of 20 years in prison. The bribery charge in Count Three carries a maximum penalty of 10 years in prison.
All of the charges Garcia faces are punishable by a fine of $250,000 or twice the amount of the pecuniary gain from the offense. As part of Garcia’s guilty plea, he agreed to criminal forfeiture of the $25,000 corrupt cash payment and administrative/civil forfeiture of the jewelry that he obtained from the scheme.
Garcia, who was originally charged by indictment with Valvano and Sablosky in October 21, is scheduled for sentencing on Dec. 12. Valvano and Sablosky’s case is pending.
“We entrust public officials to act in the best interest of the people they serve, not to abuse their position for their own personal gain,” said FBI-Newark Special Agent in Charge James E. Dennehy. “Today, Carmelo Garcia admitted he violated the citizens of Newark’s trust when as deputy mayor he accepted bribes to advance and influence private real estate interests. FBI Newark will continue to see that corrupt public officials face the punishment they deserve in the criminal justice system.”
“Carmelo Garcia abused his position of trust to oversee HUD grant money that was intended to provide housing assistance and improve the community in which he served,” added Special Agent in Charge Vicky Vazquez of the U.S. Department of Housing and Urban Development’s Office of Inspector General, said. “He willfully devised an egregious kickback scheme resulting in the theft of critical taxpayer dollars, placing the integrity of HUD’s programs at risk, and violating the trust of the communities who rely on them. HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”
Photo courtesy Carmelo G. Garcia’s Facebook page
;
Lock him up.