Greensboro, NC -- Court documents reveal that former Greensboro businessman Joey Medaloni will plead guilty to two of eight counts related to falsifying documents for a bank loan. The plea agreement was filed on Thursday in US District Court.
The first count in the plea agreement is a level four offense for providing "False Statements on a Bank Loan. The second count, also a level 4 offense, is listed as "Engage in Monetary transaction with criminally derived property in a value greater than $10,000". The other counts will be dismissed as a part of the agreement.
The first count has a maximum prison term of no more than 30 years and a maximum fine of $1,000,000. The second count is subject to a prison term of no more than 10 years and fine of $250,000.
Medaloni is due in court related to the plea agreement on Wednesday, January 3.
READ THE PLEA AGREEMENT
Medaloni owned nightclubs including the NClub, Much, and Red Room, which he sold in 2007.
The first count in the Grand Jury Indictment comes from charges that Medaloni falsified tax documents to obtain a $996,000 loan back in 2005 from Truliant Federal Credit Union.
The second count is related to the transfer of money from that loan in the amount of $206,232.58 to a Bank of America account.
READ THE FULL INDICTMENT - Sept 27, 2010
READ SUPERSEDING INDICTMENT - Nov 30, 2010
Medaloni was once called the "Mayor of Downtown Greensboro" because of his ownership of nightclubs that some say jump started the city's nightlife in downtown. He told WFMY News 2 several years ago that he briefly considered a run for mayor of Greensboro.
WFMY News 2