- Posted October 17, 2011
- Tweet This | Share on Facebook
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
headlines Oakland County
- Associations gather for Spring Fling
- Law school’s team wins William and Mary Colonial Cup Competition
- Supreme Court makes it easier to sue for job discrimination over forced transfers
- Oakland County Physician bound over on insurance fraud charges
- Innocence Project leaders present at University of Pennsylvania Carey Law School Spring Symposium
headlines National
- Incarceration series includes female inmates but doesn’t tell full story
- ACLU and BigLaw firm use ‘Orange is the New Black’ in hashtag effort to promote NY jail reform
- Former DOJ official who alleged election fraud violated at least one ethics rule, ethics committee says
- Winston & Strawn will provide reduced-cost legal services for routine tasks under Winston Legal Solutions umbrella
- Should Justice Sotomayor retire? Chemerinsky, White House haven’t joined calls for her to step down
- Which BigLaw firms are increasing lateral associate hiring the most? One made legal headlines last year