Prominent 'Gold Coast' developer denies fraud charges

Published 11-13-2018

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NEWARK, N.J. (AP) - A prominent developer whose properties dot the coveted strip of land across the Hudson River from New York City has pleaded not guilty to using a bank he founded to fraudulently obtain millions of dollars in loans.

Fred Daibes (DAY'-bees) didn't comment after the brief hearing in federal court Tuesday.

An indictment handed up last month alleges Daibes and an associate lied on loan applications and misapplied bank funds over several years to benefit Daibes' business interests.

They allegedly accomplished this by recruiting borrowers without disclosing the borrowers' connections to Daibes.

A pending lawsuit filed last December alleges Daibes colluded with officials from the town of Edgewater to block an outside developer's plans to build on the last large, undeveloped space on the waterfront.

Daibes denies the allegations.

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