U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21237 / October 5, 2009
SEC V. JOHN J. BRAVATA, ET AL., Case No. 09-CV-12950 (E.D. Mich.)
On October 5, 2009, the Honorable Judge David M. Lawson issued an Order of Contempt holding John Bravata in civil contempt for violating the Court's asset freeze orders of July 27 and August 4, 2009. Specifically, Judge Lawson found that John Bravata willfully violated those asset freeze orders by taking loans against two life insurance policies in excess of $37,000. Judge Lawson ordered that John Bravata purge his contempt by repaying the borrowed funds by noon on October 8, 2009, or report to the custody of the U.S. Marshals Service. Judge Lawson further ordered that John Bravata not leave the Eastern District of Michigan until his contempt has been purged.
The SEC previously filed a complaint against John Bravata and other defendants on July 26, 2009. The SEC's complaint charges John Bravata with violating Sections 5 and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. On July 27, 2009, the Honorable David M. Lawson issued a temporary restraining order against John Bravata, which included the previously noted asset freeze.