Federal prosecutors allege Sen. Bob Menendez and his wife told at least two people that she inherited gold bars from her mother — the same gold bars the FBI has alleged were part of payments to the senator and his wife as part of a wide-ranging bribery scheme.
Federal prosecutors wrote in court papers filed late Monday that a Menendez staffer said the senator explained "the gold had come from Nadine Menendez’s deceased mother.” Prosecutors added Nadine Menendez made a similar statement to a jeweler "claiming that the gold had come from her deceased mother.”
Federal prosecutors allege Nadine Menendez’s statement to the jeweler was "a false cover story." The FBI has said some of the gold bars were bribe payments to the Democratic senator from New Jersey developer Fred Daibes. In exchange, Daibes allegedly wanted the state's senior senator to pressure the New Jersey U.S. Attorney's Office to go easy on him in connection with a separate bank fraud case.
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At least four gold bars linked to a search of Sen. Menendez’s Englewood Cliffs home once belonged to Daibes, according to court records. In 2013, Daibes had reported numerous bars stolen from his home and were later recovered by police, according to the Bergen County Prosecutors Office. Serial numbers on some of the bars Daibes once reported stolen appear to match bars discovered in a search of the senator’s home.
News that Nadine Menendez may have told others she got the gold bars from her own mom surfaced after months of no comments from the senator and his wife as to how they allegedly got all that gold.
“The problem is, is that there is no evidence of the giving or receiving of cash and gold bars. In fact there has been, and will be at trial, a full explanation of what is the truth about those issues. A truth that proves I am entirely innocent of the charges,” Menendez said on Jan 9.
Daibes, the senator, and his wife Nadine have each pleaded not guilty to the bribery-related charges. Attorneys for the couple did not respond to requests for comment.
Prosecutors also provided more detail on the tens of thousands in cash found in Menendez's home. In addition to envelopes of cash allegedly found in jackets, in their court filing the feds said there were "four boots, stuffed with cash, including one boot containing in excess of $5,000 in $50 bills, marked with a note stating '5350.'"
Investigators also said two bags of cash were found "on top of a large rack of clothes hangers…approximately $100,000 per bag."
The FBI said Menendez and his wife accepted cash, gold bars, a Mercedes-Benz, mortgage payments and other items of value as part of a wide-ranging bribery scheme. In addition to allegedly trying to help Daibes with his bank fraud case, prosecutors said Menendez also abused his position to try to help accused bribe-giver Jose Uribe in connection with a New Jersey state attorney general investigation.
The Senator is also accused of accepting cash and gifts from a third man, Wael Hana, who allegedly wanted help securing an exclusive halal meat inspection contract worth millions with the Egyptian government. While Menendez was chair of the Senate Foreign Relations Committee, prosecutors allege he used his position to influence foreign aid deals with Egypt in order to help Hana — in exchange for the bribe payments.
Hana also allegedly partnered with Uribe to ask Menendez to pressure to state attorney general's office regarding that investigation into Uribe’s associates. Prosecutors with the Southern District of New York said Uribe texted Hana, "the deal is to kill and stop all investigation."
In their latest filing, the SDNY said Hana "swindled" the senator by not paying him all the bribe money he promised — including a $35,000 ring allegedly to be used for the Menendez’s engagement. Menendez posted video of his proposal to Nadine in front of the Taj Mahal in 2019.
"Hana received money from an individual whose criminal case needed a 'push' from Menendez as part of a quid pro quo, and 'swindled' Menendez by buying Nadine Menendez a less expensive ring than promised in exchange for Menendez’ intervention in the criminal case," the filing stated.
Prosecutors said an associate of Hana recorded at least one conversation about the alleged scheme and allegedly said Hana "had ruined the biggest relationship with one in the senate by swindling him."
The court filing by prosecutors comes after lawyers for the senator, his wife Nadine, and the three businessmen all filed motions to try to get the charges dismissed and ask the judge to limit the evidence that could be used at trial. All of the defendants deny wrongdoing, with Menendez stating on the Senate floor that "there is no evidence of the giving or receiving of cash and gold bars."
An attorney for Hana said they had no comment, other than that they were reviewing the court filings and will respond on Monday.
The judge has set a trial date for May 6.
