Glen E. Diaz, Bank Fraud Conspiracy, Money Laundering Conspiracy, Bank Fraud, Louisiana 2016

NEW ORLEANS – In a shocking case of corruption, a federal jury has convicted a former St. Bernard Parish Assistant District Attorney and two associates of defrauding First NBC Bank, a New Orleans-based bank that failed in April 2017.

Glen E. Diaz, a 72-year-old resident of Arabi, was convicted of bank fraud conspiracy, money laundering conspiracy, and eight counts of bank fraud. His associates, Peter J. ‘Pete’ Jenevein, a 58-year-old resident of Panama City, Florida, and Mark S. Grelle, a 69-year-old resident of Chalmette, were convicted of similar charges.

The jury deliberated for six days, considering evidence presented by the government that showed the defendants conspired to defraud First NBC Bank through a series of false invoices and other fake documents. The scheme, which took place between June and December 2016, resulted in the bank losing over $550,000.

The investigation revealed that Diaz, a customer of First NBC Bank since 2006, had been overdrawing his checking account for purported business expenses. However, he was depositing these overdrafts into his personal account at another bank. When bank officers asked for additional information, Diaz enlisted the help of Jenevein and Grelle to create fake invoices for warehouse improvements that were purportedly performed by Grelle’s company.

Bank officers approved the overdrafts based on these invoices, but Grelle would then write a check back to Diaz, who would deposit it into his personal account at JPMorgan Chase bank. Diaz then used the money for personal expenditures unrelated to the warehouse, including vintage automobiles, plastic surgery, precious metals, and online shopping.

The defendants may face a maximum sentence of up to 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 conspiracy, they face up to 20 years in prison, a maximum fine of the greater of $500,000 or twice the value of the property involved in the transaction, and up to three years of supervised release.

U.S. District Judge Jane Triche Milazzo presided over the trial, which was attended by 12 witnesses and presented over 450 exhibits. The case serves as a reminder of the importance of transparency and accountability in financial institutions and the consequences of corruption.

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