By Larry Neumeister, Alanna Durkin Richer and Jake Offenhartz

U.S. Sen. Bob Menendez of New Jersey pleaded not guilty on Wednesday to federal charges accusing him of pocketing bribes of cash and gold bars in exchange for wielding his political influence to secretly advance Egyptian interests and do favors for local businessmen.

Menendez led his wife, Nadine, who also pleaded not guilty in the case, by the hand out of the courtroom after the brief hearing in the lower Manhattan federal courthouse days after prosecutors unsealed an indictment alleging vast corruption by the Democrat. The couple left the courthouse clutching hands, and Menendez ignored shouted questions from reporters before giving a tight-lipped smile as he stepped into a car.

A defiant Menendez has said allegations that he abused his power to line his pockets are baseless. He has said he is confident he will be exonerated and has no intention of leaving the Senate.

Still, calls for Menendez to resign continued to mount on Wednesday with Illinois Sen. Dick Durbin, the No. 2 Senate Democrat, saying “he should step down.” More than half of Senate Democrats have now said that Menendez should resign, including fellow New Jersey Sen. Cory Booker.

Senate Majority Leader Chuck Schumer, in remarks hours after Menendez's court appearance, did not call for Menendez to resign and said Menendez would address his Democratic colleagues on Thursday. “We all know that senators -- for senators, there’s a much much higher standard. And clearly, when you read the indictment, Sen. Menendez fell way, way below that standard,” said Schumer, D-N.Y.

Menendez spoke in court only when each defendant stood to acknowledge that they understood the charges against them. A lawyer entered the not guilty plea for Menendez, who was forced to step down as chairman of the powerful Senate Foreign Relations Committee after being indicted.

The senator was ordered released on a $100,000 bond, and he must surrender any personal passports but will be allowed to keep an official passport that would allow him to travel outside the U.S. for government business. The judge ordered him not to have contact outside of the presence of lawyers with his co-defendants except for his wife.

He also can't have contact outside of the presence of lawyers with members of his Senate staff, Foreign Relations Committee staff or political advisers who have personal knowledge about the facts of the case, though it's unclear how those restrictions would impact his work.

It’s the second corruption case in a decade against Menendez, whose last trial involving different allegations ended with jurors failing to reach a verdict in 2017.

Authorities say they found nearly $500,000 in cash, much of it hidden in clothing and closets, as well as more than $100,000 in gold bars in a search of the New Jersey home Menendez, 69, shares with his wife.

Charged alongside Menendez is his wife, who prosecutors say played a key role in collecting hundreds of thousands of dollars worth of bribes from three New Jersey businessmen seeking help from the longtime lawmaker. An attorney for Nadine Menendez entered a not guilty plea for her on Wednesday, and she was ordered to be released on $250,000 bond secured by her Englewood Cliffs, New Jersey, home.

Prosecutors allege repeated actions by Menendez to benefit the authoritarian government of Egypt. They say Menendez also tried to interfere in criminal investigations involving associates, in one case pushing to install in New Jersey a federal prosecutor who he believed he could influence to derail a case.

Two of the businessmen, Jose Uribe and Fred Daibes, also were arraigned and pleaded not guilty. They did not speak to reporters as they left the courthouse Wednesday, and their attorneys also declined to comment.

The third, Wael Hana, pleaded not guilty on Tuesday to charges including conspiracy to commit bribery. Hana was arrested at Kennedy Airport on Tuesday after returning voluntarily from Egypt to face the charges, and he was ordered freed pending trial.

Menendez, in his first public remarks after last week’s indictment, said on Monday that the cash found in his home was drawn from his personal savings accounts over the years and that he kept it on hand for emergencies.

One of the envelopes full of cash found at his home, however, bore Daibes’ DNA and was marked with the real estate developer’s return address, according to prosecutors.

Prosecutors said Hana promised to put Menendez’s wife on his company’s payroll in a low- or no-show job in exchange for Menendez using his influential post to facilitate foreign military sales and financing to Egypt. Prosecutors allege Hana also paid $23,000 toward her home mortgage, wrote $30,000 checks to her consulting company, promised her envelopes of cash, sent her exercise equipment and bought some of the gold bars that were found in the couple’s home.

The indictment alleges repeated actions by Menendez to benefit Egypt, despite U.S. government misgivings over the country’s human rights record that in recent years have prompted Congress to attach restrictions on aid.

Prosecutors, who detailed meetings and dinners between Menendez and Egyptian officials, say Menendez gave sensitive U.S. government information to Egyptian officials and ghostwrote a letter to fellow senators encouraging them to lift a hold on $300 million in aid to Egypt, one of the top recipients of U.S. military support.

Prosecutors have accused Menendez of pressuring a U.S. agricultural official to stop opposing a lucrative deal that gave Hana’s company a monopoly over certifying that imported meat met religious standards.

Richer reported from Boston.

Updated September 27, 2023 at 3:25 p.m. ET with latest details.

Share:
More In Politics
End of Child Tax Credit Could Mean Slide Back Into Increasing Child Poverty
Millions of Americans with young children have relied on the child tax credit since the federal government began issuing checks in July 2021. The last round of payments was sent out just before the Christmas holiday — at the same time as the omicron variant surged. Leah Hamilton, associate professor of social work at Appalachian State University, joined Cheddar to discuss what the end to the tax credit means as the U.S. sees the end of many relief programs and its highest number of COVID cases since the start of the pandemic. "It'll become harder for families to meet their basic needs, increasing national childhood poverty rates and the proportion of families who have difficulty putting food on the table, maintaining stable housing, and paying their bills," Hamilton said. She also pointed to research that the credit as a long-term investment in children offsets claims that it contributes to macroeconomic impacts like inflation.
President Biden Speaks with Ukrainian President Ahead of Russia Meeting
U.S. President Joe Biden spoke with Ukrainian President Volodymyr Zelensky over the week-end, just days after he spoke with Russian President Vladimir Putin. The call comes as Washington prepares to meet with Moscow on January 10, as tensions mount over Russia's military build up near its border with Ukraine. Cheddar News speaks with Mustafa Tameez, a former advisor to the U.S. Department of Homeland Security, about the issue.
NYT Piece Claims Silicon Valley Investors and Founders Contorted Legal Tax Break to Avoid Taxes on Investment Profits
Several Silicon Valley insiders are being accused of contorting a 1990s-era tax break to avoid taxes on millions of dollars of investment profits. The tax break is known as the qualified small business stock exemption, and it allows early investors in certain companies to avoid half of the taxes on up to $10 million in capital gains. A piece recently published in the New York Times says venture capital firms like Andreessen Horowitz replicated the tax exemption by giving shares of companies to friends and family, who would otherwise face a 23.8% capital gains bill. The CEO of Roblox is also accused of replicating the tax break for his family members at least 12 times. Although the loophole known as 'stacking' is considered to be legal, the Times piece implies that the exemption has been manipulated for the ultra-wealthy to become more wealthy. Greycroft co-founder and Chairman Emeritus Alan Patricof joins Cheddar News' Closing Bell to discuss.
This Year In Trivia
Hena Doba and Azia Celestino recap some of the biggest stories of the year, and learn a thing or two while they're at it. It's This Year in Trivia!
Looking Ahead to Regulating Uber, Lyft, and the Gig Economy in 2022
The push to regulate the gig worker economy is gaining steam as the share of workers who participate in freelancing through businesses like Uber and Lyft have also exponentially grown during the pandemic. Employment attorney Mark Kluger, founding partner at Kluger Healey, LLC, joined Cheddar to break down how the battle to reclassify gig workers will continue in the new year, and why the issue continues to generate conflict. "More and more workers are using gig work as their primary source of income and as a result of that they are not like employees in the sense that they don't have benefits like health insurance," Kluger noted.
2022 Promises a Mixed Bag of Market Predictions
2021 saw markets continue to be impacted by the onslaught of the coronavirus pandemic -most recently in the form of the Omicron variant- in addition to the global supply chain shortage, and increased inflation. But it wasn't all bad news, as crypto soared throughout the year, and meme stocks continued to have a moment. With the year coming to a close, investors are keeping an eye out to see if they should expect more of the same in the new year. Chris Vecchio, Senior Analyst, at DailyFX tells us what market trends to be on the watch for in 2022.
Load More