NEW YORK, New York — Former auto dealer Joe Prebul pleaded guilty here today to one count of misdemeanor larceny from a bank.
In the agreement Mr. Prebul signed with the government, he admitted to stealing close to $750 from an account at FSG Bank. He admitted that the money belonged to his brother-in-law, Danny Bensusan, and that he had told Mr. Bensusan that the money would be collecting interest in a different account with Chrysler.
The plea deal was a far cry from the millions he was accused of stealing from Mr. Bensusan.
Authorities arrested Mr. Prebul in early February, alleging he had bilked New York-based businessman Mr. Bensusan out of close to $7 million. Authorities alleged that Mr. Prebul made Mr. Bensusan think the money was being invested in a high-interest account, but instead used it to keep his fledgling businesses afloat.
Mr. Prebul’s sister Lillie Prebul Bensusan, who is married to Mr. Bensusan, was in the courtroom sobbing after the hearing.
“My husband was an immigrant who worked his way up,” she said. “He wasn’t given a business like my brother.”
Mr. Prebul still must forfeit close to $7 million that he allegedly stole. Prosecutors in court today said the Bensusan family wished the case had turned out differently but agreed that this was the best resolution.
Mr. Prebul has a civil lawsuit still pending against Mr. Bensusan, an action that for now is tied to bankruptcy matters. He alleges Mr. Bensusan conspired to have him arrested only after he became impatient that the “loans” were not being paid back on time.
A federal grand jury in New York City officially indicted Mr. Prebul in May, charging him with 11 counts of wire fraud and one count of mail fraud.
All of Mr. Prebul’s auto dealerships went bankrupt the day after he was arrested, an action still pending in U.S. Bankruptcy Court in Chattanooga. Most of the dealerships so far have been sold.
Mr. Prebul ended up declaring personal bankruptcy this past summer, listing millions of dollars in personal debt.
Another example for kids.
Steal $10.00 with a gun, go to jail.
Steal $7,000,000.00 with a "business plan", get probation.
American justice, the best that money can buy.
And we wonder why there's no respect for the law.
It's not the money.....
....it's the money.
If he's in both business and personal bankruptcy, where does he come up with $7MM ?
I guess it is ok to assume you know something about Mr. Prebul's business ethics. Guessing that I assume you all who have comments to the negative have your MBA? I can also assume that most of you don't have a job and really should not comment. If the Feds had something on Mr. Prebul he would have been nailed on the spot in New York. Maybe I can assume you all are under the age of 12.
Maybe you've heard...if you assume, you make an ass out of u and me. And, are only employed people intelligent ? if so, you are the exception to the rule.
good day.
Bountyman, those MBA's are the reason this country's finances are in the shape they are in, that and Congress.
Another great testament to the lucrative white collar crime industry. Absolutely no moral compass on some of these people. In my opinion it is worse since he was swindling his own family. The family wanted it to be done but it still leaves creditors stuck with the bill. They are truly the ones injured.
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