Attorneys for former Chattanooga auto dealership mogul Joseph Prebul said they are confident he will avoid prison today, despite calls from prosecutors that a federal judge incarcerate him for a year.
The prosecutors are asking for the prison time because of Mr. Prebul’s admitted dishonesty that caused his brother-in-law to lose close to $7 million.
Mr. Prebul’s Chattanooga attorney, Tom Ray, said it is “inconsistent” at best for the government to still be calling Mr. Prebul’s actions “egregious” while at the same time allowing him last November to plead guilty to the misdemeanor larceny of just $750.
Mr. Prebul is scheduled to be sentenced today by U.S. District Judge William H. Pauley in a New York courtroom.
“We have a great deal of confidence that (Judge Pauley) will do the right thing and allow (Mr. Prebul) to come back to Chattanooga to continue being a fruitful citizen,” Mr. Ray said Thursday.
Mr. Prebul and his attorneys always have maintained that the dispute with brother-in-law Danny Bensusan was one of a civil nature and never should have been prosecuted criminally.
Prosecutors at the time of Mr. Prebul’s plea in federal court refused to explain why they agreed to so drastically reduce wire fraud charges that could have landed Mr. Prebul in prison for 20 years to a mere misdemeanor crime that carries at most 12 months as punishment.
Mr. Ray only will say that “the government’s case never shaped up the way they expected.”
As a part of Mr. Prebul’s criminal plea deal, he still must forfeit about $6.8 million to the court. The money is expected to be returned to Mr. Bensusan.
Mr. Ray is set to fly to New York this morning, where he will stand by Mr. Prebul’s side as he receives his sentence.
Whatever the outcome, the sentencing hearing is poised to at least mark the end of the Chattanooga businessman’s criminal legal troubles that began in early 2009 with his arrest by federal authorities.
An aggressive prosecution on 11 counts of felony wire fraud followed, based on allegations that Mr. Prebul solicited investment money for years from millionaire Mr. Bensusan, only to use it to pay for a lavish lifestyle and keep his car dealerships across Chattanooga and North Georgia afloat.
A dizzying array of civil lawsuits across local and federal jurisdictions followed as well, with Mr. Bensusan suing Mr. Prebul at one point for $32 million.
But Mr. Prebul fought back almost immediately, counter-suing the alleged victim, a well-known New York City jazz club owner who is married to his sister, and accusing him of extortion and defamation. Mr. Prebul since has experienced personal bankruptcy as well as the bankruptcy of every one of his former dealerships.
Civil litigation is ongoing.
Last fall, Capital Toyota and Lexus of Chattanooga President Bob McKamey gave Mr. Prebul a job as the sales manager of the Lexus showroom in what he called a “second chance” for his friend.
Mr. McKamey could not be reached Thursday to answer whether Mr. Prebul would be allowed to keep his job should he be sentenced to prison.