GREENSBORO, N.C. -- A man dubbed the "Mayor of Greensboro" after he opened several nightclubs will spend no time in prison after pleading guilty to federal charges.
Joey Medaloni was sentenced to 1-5 years probation Thursday after pleading guilty to two counts of falsely obtaining loans.
As conditions of the probation, he must provide a monthly financial report, he can't apply for credit and must pay a $50,000 fine over a period of time. The judge ordered Medaloni to make the first payment on Friday.
Medaloni, who used to own the N Club, Red Room, Much and Heaven, faced a total of seven counts after he turned himself in in October 2010. Medaloni pleaded guilty to two of the counts in December 2010.
The charges carried a maximum of 30 years in prison and a $1 million fine, but the plea agreement called for Medaloni to receive a sentence at the "low end" of the scale.
One of the counts to which Medaloni pleaded guilty included using false tax records to obtain a $996,000 loan from Carolina Bank in fall 2005. He sold the clubs by 2007, paid the loan back and left town.
Attorneys on both sides said a probation sentence is very rare in federal court.
Medaloni's attorneys didn't allow him to make comments to the media on Thursday, but he said in court that he was embarrassed by the situation and takes full responsibility for what happened.
"He made a mistake," said Davis North, one of Medaloni's attorneys. "Joey is going to go on with his life. He's got a winery going. His brother has a place here in Greensboro."
"Here's a guy who took out some loans and paid them off and still wound up with a federal conviction, so I think this is absolutely a lesson learned for a lot of people," said Chris Clifton, one of Medaloni's attorneys.
Medaloni surrendered his passport and pilot and captain's licenses when he was first arrested. It's not clear when he will get those back.