Partner in Ponzi scheme agrees to enter guilty plea

DETROIT (AP) -- The chief executive of a Michigan-based firm has agreed to plead guilty to wire fraud as part of what the government says was a Ponzi scheme that bilked investors out of millions of dollars. Records in U.S. District Court in Detroit show that Richard Trabulsy of Northville also agreed to cooperate with the government's case against his business partner John Bravata. The U.S. Securities and Exchange Commission says the managers of BBC Equities and Bravata Financial were recycling investors'a money to other investors and spending millions on lavish lifestyles. Trabulsy was chief executive of BBC Equities. Bravata is charged with conspiracy to commit fraud. Authorities say he collected $53 million from investors, but Bravata has claimed he legitimately invested the money in real estate and denies any fraud. Published: Mon, Oct 17, 2011