The court-appointed receiver for the Bravata companies, which are allegedly connected with a $50 million Ponzi scheme, said that it may not be possible for all claims against BBC Equities and Bravata Financial Group to be met.
John Bravata was accused by the SEC of running a Ponzi scheme that took money from more than 400 investors in Michigan and Ohio. A Kalamazoo native, Bravata was co-founder and chairman of the Southfield-based companies of BBC Equities and Bravata Financial Group.
Bravata denies the charges, stating that he was running a legitimate real estate investment business.
Earle Erman was appointed as receiver by the U.S. District Court in Detroit. So far, Erman has only recovered about $130,000, and he’s run up fees of more than $757,000 doing so.
Erman made the following statement: “Although there are certain assets to be liquidated and claims to pursue which may generate additional funds […] at this time there does not appear to be a reasonable prospect of any significant recovery for creditors and investors.”
Barbara McQuade, U.S. Attorney, stated recently that the five-year statute of limitations on potential financial crimes surrounding Bravata’s alleged Ponzi scheme could be reached by spring 2011.