New Jersey developer Fred Daibes, who has played a prominent role in the scandal of former Sen. Bob Menendez, pleaded guilty to a separate federal charge dating back to 2018.
Daibes pleaded guilty to one count of bank fraud, which was accepted by the judge, NorthJersey.com reported. The maximum sentence Daibes faces is 30 years in prison and a $1 million fine.
Daibes was hit with a 14-count indictment alleging he moved loans through a bank he founded and proceeded to run as chairperson. The crux of the case was a 2008 memo regarding a $1.8 million loan from Mariner’s Bank that falsely identified the borrower as someone other than Daibes.
The other 13 counts in the indictment were dismissed.
Daibes also allegedly secured millions in loans for his benefit without the knowledge of regulators or the bank, according to prosecutors, in activity that allegedly lasted from 2008 to 2013.
The Edgewater developer previously reached a plea agreement in the case, but it was tossed after he was charged in the Menendez scandal. In that case, Daibes was found guilty of fraud, bribery and obstruction of justice. Daibes allegedly bribed the then-senator with cash and gold bars in exchange for favoritism in business dealings with Qatar.
The developer has since filed for an acquittal and demanded a new trial. He claimed the evidence against him was insufficient and the bribes were just gifts. The prosecutors begged to differ at the trial, pointing to envelopes of cash and kilogram bars of gold worth $60,000 apiece.
Daibes is scheduled for sentencing in the broader scandal at the end of October, as is Menendez, who recently resigned from his political post in the Senate. Daibes’ sentencing in the bank fraud case will follow in January.
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