Prebul Going To Prison
NewsChannel 9 has learned from sources in New York City that Chattanooga businessman Joe Prebul is going to prison. Prebul has been sentenced to serve one year in prison with no parole according to the U-S Attorney's Office out of the Southern Distict of New York.
The longtime Chattanooga car dealer must also forfeit $6.7 million, the original amount his brother-in-law Danny Bensusan claimed he owed him.
Prebul's attorneys did not expect him to serve any jail time, but he received the maximum amount under the agreement for the misdemeanor to which he pleaded guilty. Prebul admitted to larceny under $1,000. Federal authorities arrested Prebul back in February of 2008. His trouble started when Bensusan, who owns multiple clubs in New York and internationally, accused him of spending money intended for investment to support his lavish lifestyle and numerous car dealerships.
Prebul's hearing took place at 3 pm Friday afternoon in New York City. The U.S. Attorney's Office says there is no parole with this sentence.
In addition, Prebul has been ordered to serve 400 hours of community service in a soup kitchen.
He is scheduled to begin serving his prison term on May 6. The definitive prison assignment for Prebul will be handled by the Federal Bureau of Prisons. But NewsChannel 9 has learned that Prebul is expected to be placed in a prison near his home state.
