Edgewater Real Estate Developer Fred Daibes Pleads Guilty To Bank Fraud

The former CEO and chairman of the board of directors at Mariner's Bank pleaded guilty in Newark federal court to making false entries in connection with a $1.8 million loan from his bank in 2008, US Attorney Phillip Sellinger said. Daibes said the line of credit was for someone else, when it was actually for his benefit, Sellinger said.

The loan said the source of repayment would be from the personal cash flow of the person receiving the loan, when Daibes funded the payments on the line of credit, all to get around federally imposed lending limits.

In Menendez's corruption trial, federal prosecutors said the senator, who resigned last month after being convicted, attempted to intervene in the case, influencing who would become federal prosecutor and then trying to influence the office's handling of the case. A jury found Daibes bribed Menendez with gold bars and cash.

Sellinger was a friend of Menendez and had also been involved in a lawsuit against a Daibes development, Politico reported. Menendez helped Sellinger get the US Attorney job after Sellinger made $10,000 donations to his legal defense fund, Politico said. Sellinger has not been accused of any wrongdoing and testified against Menendez at his corruption trial.

Michael McManus, a 67-year-old Madison resident, pleaded guilty to falsifying records to conceal the transactions, Sellinger said.

Daibes faces up to 30 years in prison and a fine of $1 million when he is sentenced next year, while McManus faces up to three years in prison and a fine of $250,000, Sellinger said.

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