HOBOKEN -- Thomas Foley, a former council candidate for the sixth ward, was arrested and charged with bank fraud conspiracy on July 23, according to a release by the United States Attorney’s Office. Attorney Joseph Ryan, who is representing Foley, said Monday that his client will plead not guilty on Wednesday. Ryan also said Foley will be seeking a speedy trial to be vindicated of the charges.
Foley, of Hoboken, was the chief operating officer of GDC Acquisitions, LLC at the time of his arrest, and allegedly was involved in a scheme which used false financial information to obtain $21 million in loans from Amalgamated Bank, according to the release.
“The defendants allegedly committed a multimillion-dollar accounting fraud. They accomplished this by a plan that was as simple as it was audacious. In plain language, they’re charged with cooking the books, grossly overstating receivables, and therefore the company’s bottom line,” said FBI Acting Assistant Director-in-Charge George C. Venizelos in a press release. “The alleged misrepresentation isn’t just lying. It’s stealing.”
Other defendants in the case are Courtney Dupree, GDC’s president; Rodney Watts, chief investment officer; and Frank Patello, former chief financial officer. If convicted, the defendants could face up to 30 years’ imprisonment.
In 2007, Councilman Nino Giacchi defeated Foley in a runoff election, 441 to 325.