Former CEO of Mariner’s Bank and Accomplice Plead Guilty to Fraud Charges

A gavel and a block is pictured on the judge's bench in this illustration picture taken in the Sussex County Court of Chancery in Georgetown, Delaware

NEWARK, N.J. — The former chief executive officer of Mariner’s Bank and an accomplice have admitted their roles in fraudulently obtaining a nominee loan from the bank, U.S. Attorney Vikas Khanna announced Friday.

Fred Daibes, 67, of Edgewater, New Jersey, the former CEO and chairman of Mariner’s Bank, pleaded guilty in Newark federal court to one count of making false entries related to a $1.8 million loan. The loan memorandum, dated June 11, 2008, falsely stated that the loan was for a nominee borrower, when in fact, Daibes was the true beneficiary. The memorandum also falsely claimed that the loan repayments would come from the nominee’s personal cash flow, though Daibes himself funded the payments.

Michael McManus, 67, of Madison, New Jersey, pleaded guilty to misprision of a felony for his role in the misapplication of the $1.8 million loan proceeds issued by Mariner’s Bank.

The false entries charge to which Daibes pleaded guilty carries a statutory maximum sentence of 30 years in prison and a $1 million fine. McManus faces a maximum sentence of 3 years in prison and a $250,000 fine for misprision of a felony.

Both defendants are scheduled to be sentenced on January 23, 2025.

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