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.
On September 2, 2009, the Court appointed Earle I. Erman as Receiver for BBC and BFG to collect assets for defrauded investors. The Receiver has recently filed a second interim report with the Court that states the Receiver has not yet concluded his investigation. The report further states that claims against the Receivership Entities are in excess of $47 million and approximately $110,000.00 in unencumbered funds have been recovered to date. The Receiver further reports that although there are certain assets to be liquidated and claims to pursue that may generate additional funds, taking into consideration the remaining assets, including potential claims against third parties, and the combined debt including the expense of administration, at this time there does not appear to be a reasonable prospect of any significant recovery for creditors and investors.
If you have a question about the Receivership, you can contact the Receiver at:
Earle I. Erman