Indictment against Medaloni expanded

A new superceding indictment filed on Tuesday broadens allegations of loan fraud already made against Joey Medaloni, who is credited with developing Greensboro's downtown nightlife scene beginning in the late 1990s.

The new indictment accuses Medaloni of providing falsified tax returns that inflated his income to First Merit Bank to secure a loan in the amount of $967,975 to Medaloni Air in July or August 2006, and of providing falsified tax returns to Carolina Bank to obtain a loan valued at $314,034 in October 2005.

The original indictment alleges Medaloni obtained a loan for $996,000 from Truliant Federal Credit Union in August 2005 through similar means.

Medaloni is linked to Rocco Scarfone and Greg Harrison through investments in Greensboro nightclubs. In 2006, Medaloni sold the N Club to Rocco Scarfone, who has recently been under fire for violence associated with his nightclubs, and sold Much/Heaven to a partnership that included Greg Harrison, Dr. Lenin Peters and Scarfone. In late 2008, Scarfone resigned from the partnership responsible for Much and Heaven.

In a preview of events to come, Scarfone filed an affidavit in 2008 alluding to statement allegedly made by Medaloni that he was under investigation by the IRS. According to Scarfone, Medaloni had approached Scarfone about allowing his younger brother join a venture related to Childress Vineyards, but cautioned that Joey Medaloni's name could not be associated with it because of the federal investigation.

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