Local Nightclub Owner Charged In $1 Million Member Business Loan Fraud

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DURHAM, N.C. – The former owner of five local nightclubs and one-time mayoral contender on Monday was charged by a federal grand jury with using phony tax returns to obtain a $1 million member business loan from Truliant FCU to finance his businesses.

Former Greensboro nightclub owner Joey Medaloni surrendered himself to federal authorities and was released on $100,000 bond.

The grand jury charged Medaloni used false tax returns he prepared himself to get a $996,000 loan from Truliant. The loans helped pay the operating expenses of Medaloni’s clubs, N Club, The Red Room, Heaven and Much martini bar. The proceeds of the loan were illegally laundered through a Bank of America account, the indictment charges.

Medaloni, who considered campaigning for mayor of Greensboro, sold the nightclubs in 2006 and 2007.

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