NJ developer in Menendez case has his own baggage

Gold bullion, exotic cards, weapons, a $2 million robbery: these aren’t plot points for a forthcoming James Bond movie, but events and allegations around New Jersey developer Fred Daibes.

Daibes, a successful builder known for luxury residential real estate, is a key figure in the bribery charges facing New Jersey Sen. Bob Menendez. The developer — one of five facing federal charges in the case — has pleaded not guilty. 

A federal indictment in 2018 accused Daibes of scheming to defraud a bank that he had founded. Prosecutors accused Daibes of giving Menendez and his wife bribes for help in the fraud case by installing a lax U.S. attorney. 

Those bribes include cash-stuffed envelopes with Daibes’ fingerprints and nine bars of gold bullion tracked to Daibes which were seized during a search of Menendez’s home, prosecutors said.

As Menendez’s case faces trial, the developer credited as the “chief architect of Edgewater’s rebirth” has been pulled into the spotlight, adding to a turbulent track record dotted with controversy and detailed in a profile by the New York Times. 

Daibes lived in a Palestinian refugee camp for the first 10 years of his life before relocating to New Jersey. After dropping out of college to support his younger siblings in the wake of his father’s death, he built his career as a luxury developer and a reputation as a local fixture: a 2018 spread in a local magazine featured his exotic car collection, including a red 1957 Jaguar XK140 and a silver 2005 Bentley Continental GT with a turbocharged W-12 engine.

The wealth that brought regional fame also brought bad actors. In 2013, four people broke into his penthouse, tied a bag over his head and beat him, breaking his ribs and dislocating his shoulder before making off with $2 million in cash, gold and jewelry. The group was eventually arrested and sentenced to serve 12 to 18 years in prison; one proved to be a confidant and neighbor of Daibes.

Menendez didn’t successfully intervene in Daibes’ 2018 case, according to prosecutors. Daibes ultimately pleaded guilty to one count of making false entries in connection with a $1.8 million loan and wasn’t set to face prison time. Last week, a judge tossed Daibes’ plea agreement in that case.

As for the latest indictment, Daibes is accused of providing financial backing to an Egyptian-American businessman who later won a lucrative contract for the sole rights to certify products imported to Egypt complied with Islamic law; the business operates out of a building in Edgewater owned by Daibes.

Menendez proceeded to use his role in the Senate to direct aid and weapons to Egypt, according to prosecutors.

Daibes Enterprises rose to prominence in Edgewater after building thousands of housing units, office spaces and retail complexes. That activity hasn’t been without its share of controversy, such as when Daibes was accused alongside officials of trying to block a development at 615 River Road on the Gold Coast.

State investigators also found Daibes provided free or discounted rent to local officials and awarded a contract to a councilperson’s company in exchange for favorable treatment in business dealings.

— Holden Walter-Warner

Read more

Development

Tri-State

Edgewater board gives thumbs up for 3 towers on former Hess site

Commercial

New York

The Daily Dirt: What is Class A office?

Commercial

New York

Bergen County real estate developer admits to role in bank fraud scheme