Brighton man accused of $50-million Ponzi scheme arrested in New York

Detroit Free Press 05/06/2011 18:13

John Bravata, 43, of Brighton is accused of operating one of Michigan's largest investment scams.

John Bravata, accused of fleecing 440 investors in a $50-million Michigan-based real estate Ponzi scheme, will be returned to Michigan in handcuffs to face criminal charges, authorities said Friday.

They said Bravata, 43, of Brighton, who is accused of operating one of Michigan's largest investment scams, was arrested at John F. Kennedy International Airport in New York City on Thursday after getting off a flight from Italy. It was unclear how long he had been abroad.

A federal magistrate in Brooklyn ordered him detained Friday as a flight risk pending a court appearance as early as next week in U.S. District Court in Detroit.

Bravata, the founder of BBC Equities LLC -- dubbed the "Billionaire Boys Club" by federal authorities -- was arrested on a federal criminal complaint issued in February in Detroit. The complaint, which was unsealed Thursday, charges Bravata with defrauding investors by wire fraud, which carries a maximum penalty of 20 years in prison.

The complaint said he misled investors from 2006-09 about how their money would be used. It said he collected $50 million from investors, but put only $20.7 million in real estate. It said he spent a large amount of the money on personal expenses.

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