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

NEWARK, N.J. - The former chief executive officer of Mariner's Bank and an accomplice both admitted their roles in improperly obtaining a nominee loan from the bank, Attorney for the United States Vikas Khanna announced.

Fred Daibes, 67, of Edgewater, New Jersey, the former CEO and chairman of the board of directors at Mariner's Bank, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count 7 of an indictment charging him with making false entries in connection with a Mariner's Bank loan memorandum dated June 11, 2008, relating to a $1.8 million loan which falsely stated that a nominee was the borrower. In fact, the line of credit was for the benefit of Daibes. The memorandum falsely stated that the source of repayment would be the personal cash flow of the nominee when, in fact, Daibes would and did fund the payments on the line of credit.

Michael McManus, 67, of Madison, New Jersey, pleaded guilty to an information charging him with misprision of a felony, that is, the misapplication of the proceeds of the $1.8 million loan issued by Mariner's Bank.

The false entries count to which Daibes pleaded guilty carries a statutory maximum term of imprisonment of 30 years and a maximum fine of $1,000,000. The misprision count to which McManus pleaded guilty carries a statutory maximum term of imprisonment of 3 years and a maximum fine of $250,000. Sentencing for both defendants is scheduled for Jan. 23, 2025.

Attorney for the United States Vikas Khanna credited investigators from the U.S. Attorney's Office, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the FDIC Office of Inspector General, under the direction of Special Agent in Charge Jeffrey D. Pittano, Mid-Atlantic Region; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today's guilty pleas.

The government is represented by Assistant U.S. Attorney Elaine K. Lou, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney's Office's Criminal Division in Newark, under the supervision of the Special Prosecutions Division.