By: Richard L. Smith
Fred Daibes, the former CEO and chairman of Mariner’s Bank, and his accomplice, Michael McManus, both pleaded guilty to their roles in fraudulently securing a $1.8 million loan from the bank, U.S. Attorney Vikas Khanna announced Thursday.
Daibes, 67, of Edgewater, New Jersey, admitted in federal court before U.S. District Judge Susan D. Wigenton that he made false entries in a loan memorandum dated June 11, 2008.
The loan, which was officially issued to a nominee, was actually for Daibes' personal benefit.
The memorandum falsely claimed that the nominee was responsible for repaying the loan from personal cash flow, while in reality, Daibes was funding the loan payments himself.
McManus, 67, of Madison, New Jersey, also pleaded guilty to misprision of a felony for his role in the misapplication of the $1.8 million loan proceeds from Mariner’s Bank.
Daibes faces up to 30 years in prison and a maximum fine of $1 million for the false entries charge.
McManus, who admitted to concealing the felony, could face up to 3 years in prison and a fine of up to $250,000. Sentencing for both defendants is scheduled for January 23, 2025.
This case stresses the ongoing efforts to hold financial executives accountable for fraudulent practices within the banking industry.