A federal prosecutor is recommending that a judge sentence former Chattanooga auto dealer to a year in prison.
Prebul, who was allowed to plead guilty to a misdemeanor count though prosecutors said the actual loss in the case was $6,783,082, is to be sentenced Friday at 3 p.m. in New York City.
Prosecutor Preet Bharara said his sentencing range is 41-51 months, but his term was capped at one year in the earlier plea agreement.
Prebul pleaded guilty to taking $743.49 on March 17, 2008, from funds entrusted to him by his brother-in-law, New York City music mogul Danny Bensusan.
The prosecutor said the Bensusan family sent over $12 million to Prebul after he advised they could earn high interest in a Chrysler account.
It was charged that he kept much of the money in FSG Bank and used large portions of it to prop up his failing auto empire and for personal expenses.
Prosecutor Bharara said Prebul should serve the full year in light of his "blatant theft and egregious relevant conduct."
The pre-sentence report says a 41-51-month sentence would have been appropriate - except for the misdemeanor plea.
Prebul's New York attorney, Maurice H. Sercarz, has not yet filed a sentencing memorandum.
Judge William H. Pauley III will set the sentence.
Prebul eventually filed personal bankruptcy and his dealerships also went into bankruptcy.
Last December, Prebul was hired as the sales manager for the Lexus lot of Capital Toyota.
Here is the prosecutor's recommendation:
Government's Sentencing Submission, U.S. against Joseph Prebul