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 hearing in Newark 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 separate lawsuit filed last December against the town of Edgewater doesn't name Daibes as a defendant but alleges the town's relationship with him is marked by "self-dealing and conflicts of interest" in real estate matters.

Daibes denies the allegations.

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This version corrects that Daibes is not a defendant in the separate lawsuit.

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This version corrects that Daibes is not a defendant in the separate lawsuit.

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