D.C. developer Douglas Jemal was in desperate financial straits when he bribed a D.C. government official to steer million-dollar contracts his way, a federal prosecutor said during opening statements of the businessman’s trial on charges of bribery, conspiracy, and mail and wire fraud.
Jemal lawyer Michele Roberts countered the high school dropout was a rags-to-riches businessman, simply giving gifts to a friend.
Jemal is on trial in U.S. District Court in the District of Columbia with his son Norman and employee Blake Esherick.
Jemal, 63, is considered a larger-than-life businessman who invested in the District when it was not fashionable. He turned his downtown five-and-dime shop into a real estate empire with 120 employees, managing 125 properties in Washington, Maryland and Virginia.
But Assistant U.S. Attorney Mark Dubester said Jemal’s business was kept afloat on fraud, dishonesty and lies. Jemal considered himself a maverick and thought the rules did not apply to him, Dubester said.
“Far from being a unique businessman, Douglas Jemal was little more than a common thief … committing crimes in common ways,” Dubester said.
Jemal was under profound financial pressure in 2001 and 2002, Dubester said. His business bounced hundreds of checks to contractors and businesses, ending up paying more than $100,000 in insufficient funds fees in 2001, Dubester said.
That’s when Jemal met Michael A. Lorusso, the deputy director of D.C.’s Office of Property Management. Lorusso had broad influence on what properties the city bought or leased, Dubester said.
Jemal showered Lorusso with trips to Las Vegas, meals at D.C.’s finest restaurants, use of his limousine, a pair of cowboy boots and a Rolex watch.
In return, Lorusso gave Jemal sweetheart deals worth millions, Dubester said.
Lorusso since pleaded guilty to bribery conspiracy charges and cooperated with prosecutors.
Roberts said Jemal didn’t need Lorusso to conduct business with the District, and Lorusso wielded little influence on the contracts. The gifts were not meant to influence him.
