Prison Sought In Jemal Case

U.S. Says Developer Shouldn't Get Break

Federal prosecutors want downtown developer Douglas Jemal sent to prison for three to five years for a financial fraud conviction, declaring in court papers that probation is too soft for a man they accuse of dastardly business practices.

Jemal has succeeded in speculative real estate in Washington in part by stalling payment on his debts, exploiting small contractors and treating "ordinary" rules and laws as beneath him, prosecutors said. Since his conviction in October for defrauding a lender to get $430,000, the government said, he has shown no remorse and shrugged off his guilty verdict, which came after a three-year criminal prosecution, as a "splinter" in his foot.

Jemal's attorneys said their client should not spend even one day in prison. Their court papers portray Jemal as a devoted family man, a real estate genius who has often sacrificed profits to nurture the revitalization of his adopted city and a charitable figure hounded by prosecutors.

Today, U.S. District Judge Ricardo M. Urbina could hint at what punishment he thinks fits Jemal's crime. He is scheduled to sentence Jemal's leasing agent, Blake Esherick, in the same case. Next month, Urbina will formally sentence Jemal and, in so doing, settle an unusually acrimonious dispute about the fate of one of the flashier figures in Washington's development industry.

Jemal has numerous projects in the works, and a prison stay would interfere with his hands-on approach to his company, Douglas Development Corp.

In a blow to the prosecution, the jury acquitted Jemal, Esherick and Jemal's son, Norman, of the more sensational bribery charges against them. Jurors said they had doubts about whether Jemal led a conspiracy to pay off D.C. government leasing official Michael Lorusso to get sweetheart deals.

Jemal and Esherick were convicted of a wire fraud charge stemming from a phony invoice they used to get a mortgage company to release $430,000 in loan proceeds. The jury agreed with the government that Jemal and Esherick used the invoice as a ruse to get the money for another purpose: to buy another building. Esherick also was convicted of tax evasion.

The cumulative 920 pages of arguments filed in court make clear the two sides' perspectives and reveal the bad blood that lingers between the U.S. attorney's office and the firebrand developer.

Prosecutors have been incensed since the day of the verdict, when Jemal played down the importance of the wire fraud conviction, hugged jurors and declared he was "happy with the outcome."

"Any principled individuals who heard a jury of 12 citizens of this community pronounce him guilty of a felony involving dishonesty would be humbled and contrite," prosecutors Mark H. Dubester and Timothy Lynch wrote. "Not Mr. Jemal."

The prosecutors said Jemal's "rationalizations and minimizations for his conduct take on many variations and permutations, but reduce to the following: I am too rich, too powerful, too successful, and too entitled to do things my way to be accountable and punished for this 'splinter' of a crime."

In response, the defense accused the prosecutor's office of stretching too far on the bigger bribery case. Prosecutors were unable to convince the jury that when Jemal and his team gave Lorusso a Rolex, trips to Las Vegas and other gifts, they were a quid pro quo for favorable leases from the city.