ENGLEWOOD, N.J.—Well-known Bergen County developer and Englewood resident James Demetrakis—who built high-rise, luxury condominiums along the Hudson River for four decades—was sentenced Nov. 20 to two years probation and ordered to pay a $75,000 fine for a loan scam that allegedly involved business partner Fred Daibes.
Daibes, a longtime associate and developer, is involved in multiple luxury and retail developments, including the long-stalled Norwood Commons, a mixed-use downtown development project along Norwood’s Livingston Street.
Lately, the project had resumed construction.
Demetrakis, 79, has spent decades involved with high-rise construction on Hudson County’s so-called “Gold Coast” along the Hudson River.
Demetrakis admitted in U.S. District Court earlier this year that he and his former business partner Daibes conspired to evade limits on how much in loans any individual can receive. Daibes maintains his innocence and the Department of Justice says charges against him are merely accusations.
Demetrakis was charged with allegedly conspiring to defraud Mariner’s Bank, a lending institution founded by Daibes.
Demetrakis previously entered an April guilty plea to one count of conspiracy to make false entries intended to deceive a financial institution.
Daibes and former chief financial officer, Michael McManus, are currently under federal indictment due to an alleged series of illegal loans from Mariner’s Bank.
Authorities allege Demetrakis helped illegally secure $4.4 million in loans for Daibes by listing himself and two relatives as borrowers instead of Daibes.
News reports said Demetrakis wept during his sentencing before U.S. District Court Judge John Michael Vazquez, telling the judge he was “very sorry” before hearing his sentence.
Demetrakis faced up to five years in prison, but the judge cited his failing health and noted that he had repaid the loans, before sentencing him.
The judge said despite these facts, Demetrakis “should have been aware of the impropriety” of taking out loans under false circumstances.
In April 2019, the U.S. Department of Justice said the scheme masterminded by Demetrakis was “designed to circumvent the lending limits by ensuring that millions of dollars in loans flowed from Mariner’s Bank to the nominees to Daibes, while concealing from both Mariner’s Bank and the FDIC Daibes’ beneficial interest in those loans,” the DOJ said.
“Daibes and the nominees, including Demetrakis, failed to disclose to Mariner’s Bank that Daibes arranged to make both the interest and principal payments on the loans,” the DOJ said.
Daibes and McManus were indicted Oct. 30, 2018, on conspiracy and bank fraud charges, which remain pending.
“…They are presumed innocent unless and until proven guilty,” said the DOJ.
