The New Jersey developer convicted with Bob Menendez pleads guilty to bank fraud

**FILE - Fred Daibes arrives at federal court in New York on July 16, 2024. (AP Photo/Seth Wenig, File)**

**NEWARK, N.J. (AP)** — Fred Daibes, a New Jersey real estate developer recently convicted alongside Democratic Senator Bob Menendez, has pleaded guilty to a separate bank fraud charge, according to prosecutors.

Daibes, 67, entered his plea in U.S. District Court in Newark, as confirmed by the U.S. Attorney’s office. He was charged with making false statements regarding a 2008 loan.

While serving as chairman and CEO of Mariner’s Bank, Daibes falsely claimed that another individual was the borrower on a $1.8 million loan, when in fact the loan was intended for him, prosecutors stated.

The charges carry a maximum sentence of 30 years in prison and a potential fine of up to $1 million.

In July, Daibes, Menendez, and businessman Wael Hanna were convicted on bribery charges. Prosecutors alleged that the senator accepted cash, gold bars, and a car in exchange for favorable treatment. Businessman Jose Uribe also pleaded guilty, while Menendez, Hanna, and Daibes plan to appeal their convictions.

Nadine Menendez, the senator’s wife, was charged and pleaded not guilty; her trial date has not yet been set.

Prosecutors had initially filed charges against Daibes in 2018 for the loan fraud. The bribery case revealed that Menendez had met with Philip Sellinger, a candidate for U.S. Attorney for New Jersey, and expressed concerns about Daibes receiving sympathetic treatment. Menendez initially rejected Sellinger’s candidacy after learning that Sellinger had previously represented Daibes and might need to recuse himself from any related cases.

However, after another candidate was unavailable, Menendez ultimately recommended Sellinger, who was later sworn in. Following Sellinger’s appointment, the Department of Justice had him recuse himself from the Daibes prosecution.