Litigation Release No. 21214 / September 21, 2009

SEC V. JOHN J. BRAVATA, ET AL., Case No. 09-CV-12950 (E.D. Mich.)

On September 11, 2009, the SEC filed a Motion For An Order To Show Cause Why Defendant John Bravata Should Not Be Adjudicated in Civil Contempt For Violating The Court's Asset Freeze Orders. This motion alleged that John Bravata violated the Court's July 27, 2009 asset freeze by taking loans against certain life insurance policies in excess of $37,000. On September 14, 2009, the Honorable Judge David M. Lawson issued an Order to Show Cause, requiring John Bravata to appear before the Court on October 1, 2009 to show cause why he should not be held in civil contempt and punished accordingly.

The SEC previously filed a complaint against John Bravata and other defendants on July 25, 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 and asset freeze against John Bravata.