New Jersey Developer Convicted with Bob Menendez Pleads Guilty to Fraud

Fred Daibes, a real estate developer from New Jersey, has pleaded guilty to a separate bank fraud charge, according to the U.S. Attorney’s office. This plea came after Daibes was convicted this past summer alongside Democratic Senator Bob Menendez on various charges.

The 67-year-old Daibes entered his plea in U.S. District Court in Newark. The specific charge involves making false statements related to a loan he secured back in 2008.

While serving as the chairman and CEO of Mariner’s Bank, Daibes misrepresented the identity of the borrower for a significant loan totaling $1.8 million. Prosecutors alleged that he falsely indicated another individual was the borrower, while in reality, the loan was for his own benefit.

The penalties for such charges are serious, as they can lead to a maximum sentence of 30 years in prison along with a substantial fine, potentially reaching up to $1 million.

In July, Daibes, Menendez, and another businessman named Wael Hanna were convicted on bribery charges. Prosecutors outlined a scheme in which Senator Menendez allegedly accepted cash, gold bars, and a luxury vehicle in exchange for providing assistance to the two businessmen.

In addition to their convictions, another businessman, Jose Uribe, has pleaded guilty regarding this bribery case. Meanwhile, the legal teams for Menendez, Hanna, and Daibes have announced plans to appeal their convictions.

Nadine Menendez, the senator’s wife, has also faced legal trouble. She has been charged but has pleaded not guilty and is currently awaiting trial.

Daibes was initially indicted for the loan fraud back in 2018. The bribery case revealed that Senator Menendez had met with Philip Sellinger, a candidate for the position of U.S. Attorney for New Jersey. During this meeting, Menendez showed a keen interest in Daibes, seeking assurances that he would be treated favorably.

Originally, Menendez had dismissed Sellinger as a candidate after their job interview in December 2020. This decision stemmed from Sellinger’s disclosure that he had previously represented Daibes and would likely need to recuse himself from any case involving the developer.

However, when another candidate fell through, Menendez reversed his position and ultimately recommended Sellinger for the U.S. Attorney role. After Sellinger was sworn in, the Department of Justice instructed him to step aside from the prosecution of Daibes, highlighting the tangled connections and potential conflicts of interest that have emerged from this case.