Attorney Jerry Farinash, the trustee in the Prebul Auto Group bankruptcy, said Monday he is looking into claims against Danny Bensusan, brother-in-law of auto dealer Joe Prebul.
Attorney Farinash declined to elaborate on the statement made during a hearing in Circuit Court.
Bensusan, who has a music empire based in New York City, is suing Prebul for $32 million and also apparently instigated criminal prosecution against him that led to the filing of 11 counts of wire fraud.
It was claimed that Bensusan had sent millions of dollars to Prebul that he thought would be invested in a Chrysler account, but which he claims was used to prop up the failing dealerships and for a lavish lifestyle for Prebul.
Joe Prebul did not attend the hearing before Judge Marie Williams.
Attorney Farinash said the dealerships, including one on Chapman Road and another on Brainerd Road, remain open. He said attempts are being made to get some employees back on the job.
Judge Williams kept a restraining order in place that had been signed by Circuit Court Judge Jackie Bolton. It is designed to prevent disposing of the Prebul assets until claims by Bensusan can be heard.
Judge Williams set a $5 million bond to be set in the case. Tom Ray, attorney for Prebul, had sought a $26 million bond "as a pre-condition for the grant of any restraining order or temporary injunction sought by plaintiff Danny Bensusan."
Attorney Ray said the Prebul real estate holdings have been valued at almost $35.6 million.
That includes $7.5 million for the Chapman Road dealership, $7.9 million for the Dalton dealership on Walnut Avenue, $1.5 million for his home on Brady Point Road on Signal Mountain, $640,000 for the Cardinal property on Amnicola Highway, $2 million for the Dayton dealership, $3 million for the Eckerd building at East Brainerd Road and Gunbarrel Road, $550,000 for his interest in the Tivoli Office Center, $2,875,000 for other personal property, $5,470,000 for Carolex Properties on Brainerd Road, $1.2 million for Carolex Properties on Amnicola Highway, $935,000 for Carolex Properties on Brainerd Road, and $2,020,000 for a dealership in Dalton on Industrial Boulevard.
Attorneys told Judge Williams that Prebul needs some income available so he can continue to pay the mortgage on his home, have living expenses, pay attorneys and travel to New York, where he faces the wire fraud charges.
Attorney Wayne Peters said Prebul has a trip planned to New York to meet with an attorney he has hired there.
He said Prebul earlier gave $25,000 checks to him and to attorney Ray for representing him.
Judge Williams granted Prebul access to $75,000 for expenses at this time.
Hugh Moore, one of the lawyers for Bensusan, said the spending should not be in the range of $15,000 a month as it was alleged that the Prebuls were putting on their credit cards in the past.
Attorney Ray said there will be a number of other claims lodged against Prebul, and the Bensusan lawsuit was filed quickly to get first in line. He said, "It's really a race to the courthouse."
Attorney Ray outlined the financial pressures facing Prebul, and Judge Williams said, "Maybe he needs to file bankruptcy."