CHATTANOOGA, Tenn. (AP) -- A bankruptcy filing linked to a federal fraud case shows the owner of a New York City jazz club is owed $7.6 million by a Chattanooga businessman charged with spending the money on pricey hotels, travel and credit card bills instead of investing it.
A company owned by Joe Prebul of Signal Mountain filed for Chapter 7 bankruptcy protection following Prebul's arrest Wednesday in Chattanooga. He was released on a $2 million bond.
Bankruptcy court records in Chattanooga show Blue Note jazz club owner Danny Bensusan, who according to some media reports is Prebul's brother-in-law, is owed $7.6 million. The federal criminal complaint charging Prebul does not name Bensusan but refers only to a relative who was told his money was being invested.
Prebul declined comment as he left his initial appearance hearing Wednesday. Bensusan could not be reached for comment at the Blue Note, but an employee took a message.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.