Bob Menendez's Co-Defendant Fred Diabes Expected to Plead Guilty – NBC New York

Fred Daibes, the man convicted of bribing Sen. Bob Menendez (D-N.J.) with gold bullion and cash, is expected to plead guilty Thursday in federal court in Newark to separate bank fraud charges, his attorney Larry Lustberg told News 4.

New Jersey real estate developer Daibes and Sen. Menendez were convicted in July in a sweeping bribery case that was prosecuted in the Southern District of New York.

Part of the bribery scheme involved Daibes trying to pay Menendez in cash and gold bullion and in exchange — prosecutors said — Menendez tried to use his power to interfere with the U.S. attorney in New Jersey and that office's separate bank fraud case against Daibes.

Daibes had been offered probation in the New Jersey bank fraud case, which involved 16 separate counts. Justice Department officials say the senator's attempts to improperly influence the outcome of the bank fraud case played no role in federal prosecutors' decision to offer Daibes probation for the bank fraud charge.

After the separate indictment for “gold bullion” bribery was announced in New York, New Jersey Judge Susan Wigenton rejected Daibes’ initial bank fraud plea deal — and the Justice Department’s proposed probation sentence — in October 2023.

Tomorrow, a new plea to bank fraud is expected to be entered – and possibly a new sentencing recommendation from the Justice Department – on the bank fraud charges.

Menendez and Daibes are scheduled to go on trial in New York on October 29 for their corruption convictions.