The U.S. Attorney’s Office Eastern District of Louisiana announced that three men from St. Bernard Parish have been convicted of federal bank fraud and money laundering dating back to 2017.
According to a press release on April 26, in connection with defrauding First NBC Bank, the New Orleans-based institution that failed in April 2017, a federal jury found Glenn E. Diaz, age 72, of Arabi, Peter J. "Pete" Jenevein, age 58, of Panama City, Florida, and Mark S. Grelle, age 69, of Chalmette, guilty of federal bank fraud and money laundering charges. Diaz spent more than thirty years serving as the parish's assistant district attorney. The defendants defrauded First NBC Bank of more than $550,000 between June and December 2016.
“This case reaffirms our office’s commitment to prosecuting white collar criminals who act as if their wealth or power puts them above the law,” said U.S. Attorney Duane Evans. “Glenn Diaz’s claims of owning tens of million dollars of assets and property throughout the United States and elsewhere in North America, did not give him the right to lie to a bank. As co-defendants Peter Jenevein and Mark Grelle discovered after today’s jury verdict, our office will hold anyone accountable for defrauding and conspiring to defraud a financial institution and commit money laundering through acts of deceit. I commend the First NBC trial team for its continued work prosecuting the individuals who defrauded First NBC Bank.”
The trial lasted six days and was presided by U.S. District Judge Jane Triche Milazzo. There were 12 witnesses called to the stand and more than 450 exhibits presented. Evidence showed that from at least April 2016 to December 2016 the convicted conspired to defraud the bank with false invoices and documents for work done at a Florida warehouse that Diaz owned.
Diaz, who was a customer of First NBC Bank from 2006 to 2017 when it closed, had been overdrawing his checking account by late 2015 for business expenses. However, he was actually depositing overdrafts into a personal account at another bank. The bank asked for proof of how he spent the overdraft funds in 2016 and then they rejected several of his checks that did not involve improvements to the warehouse. Fake voices were then provided by the defendants that involved non-existent companies and fake invoices of real companies.
The jury found Diaz guilty of conspiracy to commit bank fraud, conspiracy to commit money laundering and eight counts of bank fraud. The court declared a mistrial after the jury was deadlocked on 21 counts of bank fraud against Diaz.
Jenevein was found guilty of 29 charges of bank fraud as well as a conspiracy to commit money laundering. Grelle was found guilty of 17 charges of bank fraud as well as a conspiracy to commit money laundering. On one allegation of bank fraud, Grelle was found not guilty.
For bank fraud conspiracy and each count of bank fraud, the maximum sentence is 30 years in prison, a maximum fine of the greater of $1,000,000 or twice the gross gain to the defendants or twice the gross loss, and up to five years of supervised release. For money laundering they face up to 20 years in prison, a maximum fine of the greater of $500,000 or twice the property value involved in a transaction, and up to three years of supervised release.
Sentencing has been set for July 26 at 9:30 a.m.
