BBC Equities, LLC and Bravata Financial Group, Inc. et al.

On July 27, 2009, the SEC obtained an asset freeze and temporary restraining order against John J. Bravata and Richard J. Trabulsy, and their companies, BBC Equities, LLC (BBC) and Bravata Financial Group, Inc. (BFG), in connection with an alleged Ponzi scheme. The SEC also obtained an asset freeze against Antonio M. Bravata, John Bravata's son, and named John Bravata's wife, Shari A. Bravata as a relief defendant.

According the complaint, the defendants raised more than $50 million from at least 440 investors by offering them membership interests in a purported real estate investment fund with promised annual returns of 8 to 12 percent. The SEC alleges that although the defendants told prospective investors that BBC was a real estate investment fund and safe investment vehicle, they spent no more than $20.7 million of the money raised on real estate acquisitions. Instead, the SEC alleges that Bravata and Trabulsy used approximately $7.2 million of investor funds for their personal benefit, paid out $11.3 in Ponzi payments and spent $14 million soliciting and marketing the offering.

For more information about the SEC’s action, you can read Litigation Release Nos. 21155 (July 28, 2009) and 21214 (Sept. 21, 2009).

On September 2, 2009, the Court appointed Earle I. Erman as Receiver for BBC and BFG to collect assets for defrauded investors. At this time, however, it is uncertain whether sufficient assets will be recovered to make a distribution to investors. If you have a question about the Receivership, you can contact the Receiver at:

Earle I. Erman
Erman, Teicher, Miller, Zucker & Freedman, P.C.
400 Galleria Officentre, Suite 444
Southfield, MI 48034