$50 Million Detroit-Area Ponzi Scheme Halted; Perpetrators Jailed

Defendants John Bravata and Trabulsy raised more than $50 million from at least 440 investors by offering them membership interests in a purported real estate investment fund with promised annual returns of 8 to 12 percent. Less than half of that money was actually spent acquiring real estate, however. Instead, it was used to make Ponzi payments and misappropriated for personal use. Antonio Bravata, defendant John Bravata’s son, was charged for selling the unregistered securities and acting as an unregistered broker. All three defendants received lengthy prison sentences, ranging from 45 months to 20 years.