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NEWARK, N.J. — Fred Daibes, a New Jersey real estate developer who was previously convicted alongside Democratic Senator Bob Menendez, has now pleaded guilty to a bank fraud charge, according to statements from prosecutors on Thursday.
The 67-year-old Daibes confessed in U.S. District Court in Newark to making false statements related to a 2008 loan, the U.S.
Attorney’s office reported. At the time, while serving as chairman and CEO of Mariner’s Bank, he misled loan processors by declaring that someone else was the borrower for a $1.8 million credit line that was in fact for his own use.
This bank fraud charge could bring about a sentence of up to 30 years in prison and fines up to $1 million.
Earlier, in July, Daibes was convicted alongside Senator Menendez and a third businessman, Wael Hanna, on bribery charges. Prosecutors alleged the group engaged in illicit activities where the senator received cash, gold bars, and a car in return for his assistance to them. Another accused in this case, businessman Jose Uribe, entered a guilty plea, while Menendez, Hanna, and Daibes have announced intentions to appeal.
The senator’s wife, Nadine Menendez, also faces charges and has pled not guilty, with her trial pending.
This legal action against Daibes dates back to 2018 concerning the loan fraud. During the associated bribery case, it emerged that Senator Menendez had met with Philip Sellinger, a candidate for U.S. Attorney for New Jersey, showing particular concern for Daibes’ situation and seeking favorable treatment for him.
Sellinger was initially rejected by Menendez due to past legal associations with Daibes, which could have led to conflicts in legal proceedings. However, after an alternative candidate did not materialize, Menendez supported Sellinger’s appointment. Following his appointment, the Department of Justice advised Sellinger to recuse himself from handling Daibes’ prosecution.