Former Chattanooga auto dealer Joe Prebul was sentenced Friday to the maximum one year in federal prison and 400 hours community service at a soup kitchen.

Judge William H. Pauley III set the sentence after Prebul's sister, Lillie Bensusan, asked for the maximum sentence and said, "I will never forgive him."

Prosecutors said Prebul used almost $7 million sent by the Bensusan family to be invested for his own personal use and to bolster his failing car dealerships.

He was allowed to plead guilty to a misdemeanor, and in the plea agreement it was stipulated he could not receive more than one year.

Judge Pauley called it "an American tragedy of Faustian proportions."

He said he would have given Prebul more time if he had been able. He said, "If there was ever a misdemeanor case that called for the maximum sentence, this is it."

The judge said the public work must be at a soup kitchen "where there will not be people who can afford to buy Lexuses."

Attorneys for Prebul asked that the sentence be only 10 months, but that was denied.

Prebul must report to federal prison by May 6. He will find out his assigned location later.

Prebul spoke only briefly, turning to the Bensusan family and saying, "I'm so sorry."

Judge Pawley said Prebul has not repaid anything to the family yet. At the start of the sentencing hearing in New York City, Prebul attorneys said they were prepared to write a check for one tenth of Prebul's income for last year. They said he should also be getting money from his tax return.

Prebul attorneys said they believe he will eventually be able to repay the entire amount.

The Prebul lawyers cited a number of charitable gifts made by the auto dealer, but the judge commented, "It is easy to be charitable with somebody else's money."

Prebul's sister said she thinks about the case every morning when she wakes up, and it depresses her. She said she had always taught her children that, "Family comes first."

Her son also testified, telling about how the loss has affected the family financially, including high expenses related to several lawsuits.

Prosecutor Preet Bharara had recommended that Prebul get a year in prison.

Prebul was allowed to plead guilty to a misdemeanor count though prosecutors said the actual loss in the case was $6,783,082.

The prosecutor said his actual sentencing range was 41-51 months.

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. An official of FSG Bank testified at the hearing about the bank's losses.

Prosecutor Bharara had said Prebul should serve the full year in light of his "blatant theft and egregious relevant conduct."

Prebul's New York attorney, Maurice H. Sercarz, did not file a sentencing memorandum. Also with Prebul at the hearing was Chattanooga attorney Tom Ray. He said earlier he expected Prebul to get probation.

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.