Real Estate Developer Convicted with Senator Menendez Pleads Guilty to Bank Fraud Charge

In a recent development, Fred Daibes, a New Jersey real estate developer who was previously convicted alongside Democratic Senator Bob Menendez, has pleaded guilty to a separate bank fraud charge. The plea was entered in U.S. District Court in Newark, as confirmed by the U.S. Attorney’s office. Daibes, 67, was charged with making false statements regarding a loan in 2008. Prosecutors revealed that while serving as the chairman and CEO of Mariner’s Bank, Daibes falsely claimed that another individual was the borrower of a $1.8 million loan, when in reality, the line of credit was intended for him.

The charges Daibes faces carry a maximum penalty of 30 years in prison and a fine of up to $1 million. This guilty plea comes after Daibes, Menendez, and businessman Wael Hanna were convicted in July on bribery charges. Prosecutors alleged that the three-term senator accepted cash, gold bars, and a car in exchange for providing assistance to Daibes and Hanna. Another businessman, Jose Uribe, pleaded guilty in relation to the case. Attorneys for Menendez, Hanna, and Daibes have expressed their intentions to appeal the convictions. Nadine Menendez, the senator’s wife, was also charged but has yet to go on trial.

It is worth noting that Daibes had initially been charged in 2018 for the loan fraud. Prosecutors in the bribery case revealed that Senator Menendez had met with Philip Sellinger, a prospective U.S. Attorney for New Jersey, and had a particular focus on Daibes, seeking favorable treatment for him. Menendez initially rejected Sellinger as a candidate due to his previous representation of Daibes, which would require recusal in any case involving the developer. However, when another candidate fell through, Menendez ultimately recommended Sellinger for the position. After Sellinger’s appointment, the Department of Justice had him step aside from the Daibes prosecution.