Monday, October 19, 2009

FBI joins $53M fraud investigation

The Detroit News reports today that the FBI has joined the investigation surrounding an alleged $53 million Ponzi scheme, according to documents filed in federal court in Detroit.

Until now, the alleged "Billionaire Boys Club" scheme involving businessmen John J. Bravata of Brighton and Richard J. Trabulsy of Northville has been a civil case, with the U.S. Securities and Exchange Commission pursuing the men and their companies through a civil fraud and securities lawsuit filed in U.S. District Court.

The SEC filed the lawsuit against Bravata, Trabulsy and their companies, BBC Equities and Bravata Financial Group, on July 26. Under the alleged scheme, authorities said, more than 400 investors were promised returns of 8 percent or more while the principals spent millions on luxury homes, boats, jewelry, gambling, exotic vacations and expensive cars.

FBI joins $53M fraud investigation

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