Grand Jury Charges Former St. Bernard Parish Deputy District Attorney and Two Associates with Bank Fraud and Money Laundering Charges | USAO-EDLA
NEW ORLEANS – U.S. Attorney Duane A. Evans has announced that a grand jury has issued an indictment on December 10, 2021 against GLENN E. DIAZ, 70 years old, from Arabia; PETER J. “PETE” JENEVEIN, 56, from Panama City, Florida; and MARK S. GRELLE, 67, of Chalmette, on bank fraud and money laundering charges related to fraud at First NBC Bank, the New Orleans-based bank that went bankrupt in April 2017.
According to the indictment of 19 counts, from at least April 2016 to December 20, 2016, DIAZ, JENEVEIN, and HAIL conspired to defraud First NBC Bank through a series of false invoices for work allegedly performed at a Florida warehouse owned by DIAZ. As stated in the indictment, DIAZ was a client of First NBC Bank from 2006 until the bank closed in 2017. At the end of 2015, DIAZ had overdrawn his checking account for alleged business expenses, although DIAZ deposited these overdrafts on his personal account at another bank. In April 2016, First NBC Bank agents requested DIAZ for more information on using overdrafts. In June 2016, bank agents started demanding invoices as proof that DIAZ was spending bank funds to improve the Florida warehouse.
After, DIAZ had his partner JENEVEIN provide invoices for Florida warehouse improvements made by HAIL, Grelle Underground Services LLC. The bank agents then approved the overdrafts on the basis of these invoices. However, after DIAZ wrote the check to HAILthe company of, HAIL would then write a check to DIAZ, Who DIAZ would deposit to his personal account at JPMorgan Chase Bank. DIAZ then used the money for expenses unrelated to the Florida warehouse project. In total, DIAZ, JENEVEIN, and HAIL executed a total of 17 round-trip transactions that defrauded First NBC Bank of $ 345,841.41.
DIAZ, JENEVEIN, and HAIL are all charged on each of the 19 counts. Count 1 charges the defendants with conspiracy to commit bank fraud, in violation of Title 18 of the United States Code, Sections 1344 and 1349. The maximum sentences that can be imposed on conviction are up to 30 years of prison, a maximum fine of the greater of $ 1,000,000.00 or double the gross gain to defendants or double the gross loss; up to five years of supervised release; and a mandatory special assessment fee of $ 100.
In account 2, DIAZ, JENEVEIN, and HAIL are charged with conspiracy to commit money laundering, in violation of Title 18, United States Code, Sections 1956 (a) (1) (B) (i) and 1956 (h). If found guilty, they face a maximum of 20 years in prison, a fine of up to $ 500,000.00 or double the value of the property involved in the transaction, up to three years of supervised release and penalties. mandatory special assessment fee of $ 100.
In counts 3 to 19, DIAZ, JENEVEIN, and HAIL are charged with bank fraud, in violation of Title 18, United States Code, Section 1344. For each count, defendants can receive a maximum of 30 years in prison, a fine of up to $ 1,000,000.00 or double the gross gain amount for defendants or double the gross loss, up to five years on probation and a mandatory special appraisal fee of $ 100.
“The FBI is determined to identify, investigate and bring to justice those who commit financial crimes to enrich themselves at the expense of others,” said Douglas A. Williams, Jr., special agent in charge of the FBI New Orleans. âThe FBI remains committed to investigating those who engage in white collar crimes that impact our financial institutions. “
âWe will vigorously prosecute all wrongdoers whose fraudulent actions affect the safety and soundness of financial institutions regulated by the Federal Reserve Board,â said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of the Inspector General of the Board of Governors of the Federal Reserve System and Office of Consumer Financial Protection.
US Prosecutor Evans reiterated that an indictment is only an indictment and that the defendants’ guilt must be proven beyond a reasonable doubt.
This matter is currently under investigation by the Federal Bureau of Investigation; Board of Governors of the Federal Reserve System, Bureau of Consumer Financial Protection, Office of the Inspector General; and the Federal Deposit Insurance Corporation, Office of the Inspector General. Deputy US prosecutors Matthew R. Payne, Nicholas D. Moses, J. Ryan McLaren, K. Paige O’Hale and Rachal Cassagne are charged with the charge.