Former Bank CEO and Accomplice Guilty in $1.8M Loan Fraud

Former CEO of Mariner’s Bank and Accomplice Admit Roles in Obtaining Nominee Loans from Mariner’s Bank.Photo byMorristown Minute

Fred Daibes, former CEO of Mariner's Bank, and Michael McManus face prison time for their roles in misrepresenting a $1.8 million loan

NEWARK, N.J. – Fred Daibes, 67, the former CEO and chairman of the board of directors at Mariner’s Bank, has pleaded guilty to falsifying loan records in connection with a $1.8 million nominee loan, according to U.S. Attorney Vikas Khanna.

Daibes admitted in federal court to submitting false entries regarding a 2008 loan, which claimed that a nominee was the borrower while the funds were actually used for his benefit. The loan memorandum falsely indicated that the nominee’s personal cash flow would cover the repayments, but Daibes himself funded the payments.

Michael McManus, 67, of Madison, New Jersey, also pleaded guilty to charges related to the fraudulent scheme. McManus admitted to misprision of a felony, acknowledging his role in the improper use of the loan proceeds.

Daibes faces up to 30 years in prison and a $1 million fine, while McManus faces up to 3 years and a $250,000 fine. Both are scheduled for sentencing on January 23, 2025.

The investigation was carried out by the U.S. Attorney’s Office, the FDIC Office of Inspector General, and the FBI. Assistant U.S. Attorneys Elaine K. Lou and Ari B. Fontecchio are prosecuting the case.

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