Investigation

Judge throws out Daibes' fraud plea that has been part of Menendez bribery probe

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The plea deal Fred Daibes entered in connection to his alleged bank fraud crimes, which are part of Sen. Bob Menendez bribery investigation, has been rejected.

Judge Susan Wigenton rejected Thursday the bank fraud Daibes entered into with federal prosecutors in New Jersey about his alleged bank fraud crimes.

“The Court hereby rejects the plea agreement” Wigenton wrote in the order filed this morning.

The FBI says Daibes gave Menendez cash and gold bars in exchange hoping the senator would contact federal prosecutors to help him get favorable treatment with the bank fraud case. Menendez and Daibes have pleaded not guilty and deny wrongdoing.

A spokesman United States Attorney for the District of New Jersey Phil Sellinger declined to comment.

Daibes attorney Larry Lustberg who handled the bank fraud case for Daibes did not immediately return a call for comment.

Under the now rejected plea deal, Daibes would have faced no prison time. 

The judge also rejected the plea deal involving Daibes co-defendant Michael McManus in the bank fraud case.

A LOOK AT SEN. BOB MENENDEZ BRIBERY INVESTIGATION

A judge is planning a spring trial for Menendez and his wife, who are accused of accepting bribes of cash, gold bars and a luxury car from three New Jersey businessmen who sought the senator's help and influence over foreign affairs.

The tentative trial date of May 6 would come just one month before New Jersey's June 4 primary, meaning it could still be underway when voters start casting ballots on whether to return Menendez to the Senate.

An indictment last month charged the Democrat, formerly the chair of the Senate Foreign Relations Committee, with taking payouts in exchange for corrupt acts that included passing information to Egyptian military and intelligence officials. Among other things, prosecutors accused Menendez of ghostwriting a letter for Egyptian officials that sought to influence U.S. policy on military aid.

The indictment also said Menendez used his influence to try and pressure state and federal prosecutors in New Jersey into giving lenient treatment to friends or associates who were the subject of criminal investigations, and interceded with U.S. regulators to protect an associate's business deal.

Authorities found nearly $500,000 in cash, much of it hidden in clothing and closets, as well as more than $100,000 in gold bars in a search of the New Jersey home Menendez, 69, shares with his wife, Nadine.

Menendez was excused from being present for Monday’s court hearing in New York City after his lawyers said he needed to be in Washington for Senate business. However, the judge declined similar requests from Nadine Menendez and her co-defendants, Wael Hana, Jose Uribe and Daibes. All four have also said they are innocent.

Prosecutors have accused Hana of being a conduit between Menendez and Egyptian officials. They said Hana gave Nadine Menendez a job, gave her money to make mortgage payments, wrote checks to her consulting company, promised envelopes of cash and gave her gold bars. They said Menendez used his post to facilitate foreign military sales and financing to Egypt, which gave Hana’s business a lucrative, worldwide monopoly over religious certification for imported meat.

More than half of Senate Democrats have said that Menendez should resign, including New Jersey Gov. Phil Murphy and fellow New Jersey Sen. Cory Booker. Menendez has said he intends to stay in the Senate, saying he is certain he will ultimately be exonerated.

Copyright NBC New York/Associated Press
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