[RP TownTalk] Jemal

[Dannielle Glaros]

For those who missed this commentary in the Post, I thought you would 
find it of interest--a little insight into his personality.  I must 
admit this meshes with a lot about what I hear about him--a risk taker 
who invests in properties before the market is hot.  Granted, I will 
admit I'm rather disappointed that nothing is yet in the town center.

Dannielle

Jemal Appears Guilty -- of Choosing Friends Badly

By Steven Pearlstein

Friday, September 30, 2005; Page D01

Sometimes where there's smoke, there is just smoke. And my gut tells me 
that's what U.S. Attorney Kenneth Wainstein is about to find out as he 
tries to win a conviction against developer Douglas Jemal on charges of 
bribing a city official to win sweetheart business deals.

In the past few days, I've spoken with a dozen developers and business 
leaders who've had dealings with Douglas (like Cher and Madonna, he's a 
one-of-a-kind character often referred to with a single name). And to a 
person, they simply can't believe that he would have set out to bribe 
anyone, or risk so much for so little, or do anything to hurt an 
adopted city in which he invested so much of himself.

What they can believe is that Douglas had the bad judgment to befriend 
Michael Lorusso, a former developer turned deputy director of the 
District's property management office, who fancied himself something of 
a dealmaker in the Douglas mold.

Nor is anyone particularly surprised that Douglas might have invited 
Lorusso to his box at the MCI Center, or bought him a pair of cowboy 
boots from a fabulous store he discovered, or even picked up his bill 
at a fancy hotel in Las Vegas while attending an industry conference 
together. Douglas inappropriately showered generosity on all his 
friends -- including, it now seems, at least one public servant he 
shouldn't have and who should have known better than to accept it.

It might also come as no shock to those who know him that Douglas was 
hardly punctilious about separating his personal and business finances, 
keeping careful records or worrying about what needed to be reported as 
employee compensation to the IRS.

But what they can't believe, not for a minute, is that Douglas would 
have risked his reputation as a straight shooter and his sizable 
personal fortune for a lousy bit of city business that might have been 
worth an extra million or two.

Remember, this is a guy who, having sunk lots of his money in the old 
Woodies building on F Street, refused to rent it out at top dollar for 
another CVS or bank branch. Instead, he waited until he could land a 
much less lucrative lease with the H&M department store, which he knew 
would be more important to the downtown retail revival he's been 
dreaming of since he opened his Wiz outlet on F Street in the 1970s.

This is the same Douglas who never refuses when a friend asks him to 
buy a table at a charity event or kick in $10,000 for a civic cause. A 
second-generation Sephardic Jew, Douglas bought a historic synagogue 
that was about to be turned into a nightclub, then persuaded several of 
his developer pals to join him in restoring it to its former grandeur.

No doubt about it: Douglas has an unorthodox style.

At a time when nearly every other developer has gone public or turned 
corporate, Douglas is the last of the freewheeling entrepreneurs -- a 
high school dropout who takes risks where others won't and does deals 
on a handshake.

He regularly works 16-hour days, then cruises the restaurants and bars 
of the East End with his son Norman and his first lieutenant, Blake 
Esherick, often ending up at his favorite table at the Capital Grille 
on Pennsylvania Avenue.

His work attire consists of blue jeans and a T-shirt, although for 
special black-tie events he'll put on sneakers and a Hawaiian shirt.

And although his holdings have grown to 400 properties, Douglas still 
insists on negotiating deals himself with the top decision-makers on 
the other side -- no lawyers or teams of MBAs, no haggling over every 
line of 50-page purchase and sale agreements.

To those he dislikes or distrusts, he often makes outrageous demands, 
secretly hoping they'll walk away. With everyone else, he leaves money 
on the table, as a down payment on the next deal.

The 39-page indictment against Douglas, Norman and Esherick is a 
repetitious list of infractions, some of them embarrassingly 
penny-ante, others tax-avoidance maneuvers no doubt familiar to many a 
privately held business. Run-of-the-mill real estate refinancings and 
commissions arrangements are portrayed as shady and nefarious. And much 
of the evidence appears based on testimony from Lorusso, who already 
has pleaded guilty and whose sentence is dependent on delivering up 
Douglas.

What's not there, even after several years of investigation, is 
evidence of any quid pro quo in his relationship with Lorusso, or even 
proof that the District's taxpayers have been fleeced. A credible 
motive is also hard to discern.

Maybe all that will come out at trial. But for the moment, I'm sticking 
by a colorful and committed businessman who's done more than anyone to 
enrich the quality of life in downtown Washington.

Steven Pearlstein can be reached atpearlsteins at washpost.com
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