Joseph Prebul is scheduled to be arraigned on 11 counts of wire fraud and one count of mail fraud at 2 p.m. Friday in U.S. District Court in Manhattan.
Local auto dealer Joseph Prebul has responded to a federal lawsuit against him in New York by suing his brother-in-law - and alleged fraud victim - back.
Court records show that Roland Riopelle, the same New York City-based attorney who is defending Mr. Prebul against wire and mail fraud charges in U.S. District Court, has filed a counterclaim against his client's brother-in-law Danny Bensusan.
In the claim, Mr. Prebul asks for a jury trial in the case. He makes the same allegations he is making in a dispute pending between the two in Hamilton County Circuit Court: that Mr. Bensusan tried to extort money out of him and mismanaged the family-owned business TSE Group LLC.
"Danny Bensusan has breached fiduciary duties owed to personal with minority ownership interests in (TSE Group), failing to act in good faith, improperly profiting financially, and receiving other improper benefits to which he was not entitled," the document states.
Mr. Bensusan alleges that Mr. Prebul bilked him out of $6.8 million he thought was being invested and has asked for repayment of that money plus damages. He launched a $32 million lawsuit in Circuit Court shortly after Mr. Prebul's Feb. 10 arrest.
Mr. Bensusan's lawyers have tried to have that suit dismissed and filed a new claim against both Mr. Prebul and his stepfather, Julius Greenwald, in U.S. District Court in New York. Mr. Prebul's attorneys have kept the Circuit Court suit alive through a countersuit containing the same allegations as Mr. Riopelle's countersuit in federal court.
Meanwhile, Mr. Greenwald is asking that his part of the suit, which centers around a disputed loan to TSE Group, be dismissed completely for improper venue. Mr. Greenwald already has filed suit in Hamilton County Chancery Court to address the issue, records show.