UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF MICHIGAN 

(SOUTHERN DIVISION) 

J. LINCOLN CROCKER, Individually and on 

behalf of all others similarly situated 

 

 Plaintiffs, 

 

 v. 

 

BBC EQUITIES, L.L.C.; BRAVATA FINANCIAL 

GROUP, L.L.C.; BBC CAPITAL, L.L.C.; BBC 

HOLDINGS 1-50, LLC; BBC HOLDINGS I-XI, 

LLC; FERNDALE LOFTS, LLC; PHOENIX 

VENTURES CAPITAL, LLC; JOHN J. 

BRAVATA; JAMES JOE BRAVATA; RICHARD 

J. TRABULSY; ANTONIO M. BRAVATA; 

SHARI A. BRAVATA; JOHN SELLERS; AARON 

SIMON; and EQUITY TRUST COMPANY. 

 Defendants. 

 

Case No. 09-13158 

Hon. David M. Lawson 

_______________________________________________________________________/ 

Mark L. Newman (P51393) 

Christopher D. Kaye (P61918) 

950 W. University Drive, Suite 300 

Rochester, MI 48307 

(248) 841-2200 

Attorney for Plaintiff 

_______________________________________________________________________/ 

FIRST AMENDED CLASS ACTION COMPLAINT

NOW COMES Plaintiff J. Lincoln Crocker, by and through his attorneys The Miller 

Law Firm, and for his Complaint alleges as follows: 

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OVERVIEW

1. The subject of this Complaint is an offering fraud and Ponzi scheme involving 

approximately $50 million and at least 440 investors. The fraud was perpetrated by Defendants 

John J. Bravata (“John Bravata”), Richard J. Trabulsy (“Trabulsy”), John Sellers, and James Joe 

Bravata (“Joe Bravata”) (together, the “Executive Defendants”), several of their companies – 

Defendants BBC Equities, LLC (“BBC Equities”) and Bravata Financial Group, LLC (“Bravata 

Financial”), BBC Holdings 1-50, LLC (together, the “50 BBC Holdings”), BBC Holdings I-XI, 

LLC (together, the “XI BBC Holdings”), BBC Capital, LLC (“BBC Capital”), Phoenix Venture 

Capital, LLC (“Phoenix”), and Ferndale Lofts, LLC (“Ferndale Lofts”) (all of these corporate 

defendants together, the “Corporate Defendants”) – assisted by Defendants Antonio M. Bravata 

(“Antonio Bravata”), Aaron Simon, Shari Bravata, and Equity Trust Company. (The Executive 

Defendants and the Corporate Defendants are collectively referred to herein as the “Senior 

Defendants.” The Senior Defendants and the other defendants are collectively referred to as 

“Defendants.”) The fraud continued at least until the Securities and Exchange Commission (the 

“SEC” or the “Commission”) filed a lawsuit on or about July 28, 2009. 

2. The Defendants characterized BBC Equities to prospective investors as a real 

estate investment fund, and as a safe investment vehicle with annual returns of 8% to 12%. 

However, BBC Equities was far from a safe investment. Unbeknownst to the investors, their 

proceeds were used to finance Defendants’ expensive lifestyles, paying for luxury homes, 

watercraft, jewelry, gambling, exotic vacations, and expensive cars. Indeed, John Bravata used 

money from the first two investors to buy himself a $90,268 Ferrari. In total, John Bravata and 

Trabulsy spent at least $7 million of the investors’ money for their own benefit, and for the 

benefit of John Bravata’s wife, Shari A. Bravata, and for his son, Antonio Bravata. 

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3. The Senior Defendants have lied to prospective investors about the use of investor 

funds; the risks associated with the investment; the purported compensation, commission, and 

finder’s fees paid to Defendants and other; and the true financial condition of BBC Equities. 

4. To keep their scheme afloat, the Senior Defendants spent an additional $11.3 

million of investor funds perpetrating a Ponzi scheme. They used new investment proceeds to 

make quarterly payments to earlier investors, among other payments. They have also spent $14 

million of investment proceeds soliciting and raising money from new investors to fuel the 

scheme. 

5. Defendants’ lavish spending and the cost of propping up their Ponzi scheme left 

BBC Equities with little to invest. Of the more than $50 million in investment proceeds, no more 

than $21 million remained for BBC Equities to use acquiring real estate properties. Worse, those 

properties are highly leveraged, with mortgages and other liabilities exceeding $128 million. 

6. Defendants’ malfeasance has rendered BBC Equities financially insolvent. Its 

monthly expenses exceed its revenues by a ratio of more than 10-to-1. To avoid the collapse of 

their scheme, Defendants apparently continued to actively solicit new investors and fresh 

investment proceeds up until the time of the SEC lawsuit. Now, many of the Defendants have 

seen their assets frozen, and the investors are unable to access the money they invested. 

THE PARTIES 

7. John J. Bravata, age 41, is a resident of Brighton, Michigan. He is a manager, cofounder, and the Chairman of BBC Equities and Bravata Financial. He is not, and never has 

been, registered with the Commission as a broker-dealer or as being associated with a brokerdealer firm that is registered with the Commission. 

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8. Richard J. Trabulsy, age 26, is a resident of Northville, Michigan. He is a 

manager, co-founder, and the Vice-Chairman of BBC Equities and Bravata Financial. Trabulsy 

is not registered with the Commission as a broker-dealer or as being associated with a brokerdealer firm that is registered with the Commission. 

9. Joe Bravata, a resident of Brighton, Michigan, is John Bravata’s brother. He is 

not, and never has been, registered with the Commission as a broker-dealer or as being 

associated with a broker-dealer firm that is registered with the Commission. He served as an 

employee and agent of BBC Equities and one or more additional Corporate Defendants, 

officially holding the title of Southfield/Brighton Branch Manager. In fact, his role in the 

scheme went beyond this title, and was intimately involved in the operation of the scheme 

described in this Complaint, exercising control over its operation. 

10. BBC Equities, LLC, is a Michigan limited liability company formed in May 2006 

with its principal place of business in Southfield, Michigan. Defendants characterize BBC 

Equities as a real estate investment fund. John Bravata chose the name BBC Equities to stand for 

“Billionaire Boys Club” – an apparent reference to a 1980’s-era ponzi scheme that began with 

high-living fraudsters and devolved into recriminations, murder, and an NBC miniseries. 

Defendants (in this latter-day Billionaire Boys Club) told investors that investment proceeds are 

used to buy various forms of real estate. From at least May 2006 through July 2009, Defendants 

raised at least $50 million from at least 440 investors by selling membership interests in BBC 

Equities. Certain BBC Equities offering materials, including private placement memoranda 

(“PPMs”), describe the membership interests as securities. BBC Equities has never been 

registered with the Commission as a broker-dealer. BBC Equities’ securities are not registered 

with the Commission, nor were its offerings. 

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11. Bravata Financial Group, LLC, is a Michigan limited liability company formed in 

January 2003, with its principal place of business in Southfield, Michigan, and with five other 

offices in Michigan, Ohio, and Kentucky. Bravata Financial is owned by John Bravata and 

Trabulsy. Bravata Financial purports to be a financial and estate planning firm that advises its 

clients regarding the purchase of securities, including BBC Equities securities, insurance, and 

annuities. Bravata Financial has never been registered with the Commission as a broker-dealer. 

Throughout the offering, John Bravata and Trabulsy owned and controlled BBC Equities and 

Bravata Financial. They control BBC Equities and Bravata Financial’s bank accounts, books and 

records; they control the representations made and the flow of information to investors; and they 

control the use of investor proceeds. 

12. Antonio M. Bravata, age 21, is a resident of Brighton, Michigan and is John 

Bravata’s son. He is not registered with the Commission as a broker-dealer or as being associated 

with a broker-dealer firm that is registered with the Commission. Despite not being registered or 

licensed, Antonio Bravata worked for BBC Equities and Bravata Financial as a sales agent. More 

than $444,384 of BBC Equities investor funds have been transferred to or spent for his benefit. 

13. Aaron Simon is a resident of Kalamazoo County, Michigan, and was an employee 

of one of the Corporate Defendants and served as a selling agent for BBC Equities and solicited 

investors on its behalf. 

14. John Sellers, a resident of Oakland County, Michigan, was an employee of 

Bravata Financial and one or more other Corporate Defendants. He prepared materials used to 

solicit investors in the scheme and otherwise solicited such investors, and received a finder’s fee 

for all investors in the program; for example, as of 2009, he received 8.33% of Bravata 

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Financial’s net profits from securities operations. He also oversaw and controlled the operations 

of the Corporate Defendants. 

15. Equity Trust Company is an Ohio corporation that bills itself as “the nation's 

leading provider of self-directed IRAs and 401ks, with over 45,000 clients in all 50 states and 

over 3 Billion dollars of retirement plan assets under management.” 

16. Shari A. Bravata, age 43, is a resident of Brighton, Michigan and is John 

Bravata’s wife. More than $1,872,000 of BBC Equities investor funds have been transferred to 

or spent for her benefit. 

 17. Plaintiff J. Lincoln Crocker is a resident of Kalamazoo, Michigan. As set forth 

below, he has lost an “investment” of approximately $250,000 in the Defendants’ scheme. 

CLASS ACTION ALLEGATION 

18. Plaintiff brings this action on his own behalf and as a class action pursuant to 

Rule 23(a) and Rule 23(b)(3) of the Federal Rules of Civil Procedures on behalf of all persons or 

entities who purchased any investment offered by Defendants from May 2006 until the present 

day (the “Class Period”), and who suffered damages as a result (the “Class”). Excluded from the 

Class are: (i) Defendants; (ii) members of the immediate family of each of the Defendants that 

are not corporate entities; (iii) any person who was an executive officer and/or director of any 

Defendant during the Class Period; (iv) any person, firm, trust, corporation, officer, director, or 

any other individual or entity in which any Defendant has a controlling interest or which is 

affiliated with any of the Defendants; and (v) the legal representatives, agents, affiliates, heirs, 

successors-in-interest or assigns of any such excluded party. 

19. The members of the Class, purchasers of Defendants’ investments during the 

Class Period, are so numerous that joinder of all members is impracticable. While the exact 

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number of Class members can only be determined by appropriate discovery, Lead Plaintiff 

believes that Class members number at least 440, if not higher. 

20. Plaintiff’s claims are typical of the claims of members of the Class. Plaintiffs and 

all members of the Class sustained damages as a result of the conduct complained of herein. 

21. Plaintiff will fairly and adequately protect the interest of the members of the Class 

and has retained counsel competent and experienced in class and securities litigation. Plaintiff 

has no interests that are contrary to or in conflict with those of the members of the Class that 

Plaintiff seeks to represent. 

22. A class action is superior to other methods for the fair and efficient adjudication 

of this controversy. Because the damages suffered by individual Class members may be 

relatively small, the expense and burden of individual litigation make it virtually impossible for 

the Class members individually to seek redress for the wrongful conduct alleged herein. 

23. Common questions of law and fact exist as to all members of the Class and 

predominate over any questions solely affecting individual Class members. Among the 

questions of law and fact common to the Class are: 

 a. Whether the federal securities laws were violated by Defendants’ acts as 

alleged herein; 

 b. Whether the investment vehicles sold by Defendants constituted 

“securities” under federal and state securities laws; 

c. With respect to Plaintiff’s claims under Section 10(b) of the Exchange 

Act, whether the Section 10(b) Defendants acted with the requisite state of mind in omitting 

and/or misrepresenting material facts in the memoranda, press releases and public statements; 

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d. With respect to Plaintiff’s claims pursuant to Section 20(a) of the 

Exchange Act, whether the named Defendants are controlling persons of the Company; 

e. Whether the members of the Class have sustained damages as a result of 

the misconduct complained of herein and, if so, the appropriate measure thereof. 

24. Plaintiff knows of no difficulty that will be encountered in the management of this 

litigation that would preclude its maintenance as a class action. 

25. The names and addresses of the owners of Defendants’ securities purchased 

during the Class Period are obtainable from information in the possession of the Defendants 

and/or their agents. Notice can be provided to such owners via first class mail using techniques 

and a form of notice similar to those customarily used in class actions. 

JURISDICTION AND VENUE

26. This Court has jurisdiction pursuant to Section 22 of the Securities Act (15 U.S.C. 

§ 77v); Section 27 of the Exchange Act (15 U.S.C. § 78aa); and 28 U.S.C. §§ 1331 and 1337. 

27. Venue is proper in this District pursuant to Section 22 of the Securities Act, 

Section 27 of the Exchange Act, and 28 U.S.C. § 1391(b). Many of the acts and transactions 

giving rise to the violations of law complained of herein occurred in this District. All 

Defendants are either residents of Michigan, or Michigan corporate entities organized under the 

laws of Michigan and headquartered in the state, except for Equity Trust Company, which is an 

Ohio corporation that does extensive business in the State of Michigan, including but not limited 

to its business arrangements with the Corporate Defendants. 

28. Defendants, directly and indirectly, have made, and are making, use of the means 

and instrumentalities of interstate commerce, the means and instruments of transportation and 

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communication in interstate commerce, and the mails, in connection with the acts, transactions, 

practices, and courses of business alleged herein. 

FACTS 

A. A Fraud from the Start 

29. In May and June 2006, John Bravata and Trabulsy raised $609,985 from BBC 

Equities’ first two investors. John Bravata used $90,268 of those investment proceeds to buy 

himself a Ferrari, a purchase made possible only through the unwitting generosity of these two 

investors. Trabulsy, for his part, paid himself a handsome 21% “commission” on the second 

investor’s $210,000 investment. 

30. John Bravata, Trabulsy, and a small number of BBC Equities and Bravata 

Financial employees started the scheme by orally soliciting money from 15 family members and 

friends, from whom Defendants raised at least $3.27 million. None of these initial investors 

received private placement memoranda (“PPMs”) before they invested. Defendants assured these 

investors that their investment funds would be spent on real estate, and they that could expect 

annual returns of 10% or 12%. 

B. The “Free Lunch” Seminars 

31. Next, Defendants implemented “free lunch” seminars in an effort to target 

wealthy senior citizens. They mailed fliers for the seminars to approximately 5,000 potential 

investors per location. Defendants conducted approximately 16 seminars per week, with 

approximately 15 to 20 potential investors attending each seminar. After the seminar, BBC 

Equities or Bravata Financial contacted attendees who expressed interest in investing. Some of 

these prospective investors received additional offering materials, including the PPMs described 

below. 

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32. The presenters at the seminars, including John Bravata and his son Antonio, used 

a general script and a PowerPoint presentation. They told attendees that BBC Equities’ real 

estate investment program provided better and safer returns than other investment options. In the 

earlier seminars, they boasted of guaranteed annual returns of 12%. In later seminars, they 

lowered the annual returns to 8%, responding to feedback from earlier participants that 12% 

seemed “too good to be true.” 

33. At the seminars, Defendants told investors, among other things, that they could 

use their Individual Retirement Accounts (“IRA”) to fund their BBC Equities investments. The 

attendees apparently took note, as more than half of the investment proceeds BBC Equities 

ultimately raised were conversions from investors’ IRAs. 

34. John Bravata, Trabulsy, and the other presenters never told seminar attendees 

that: large sums of their investments would be used to pay John Bravata or Trabulsy’s personal 

expenses; that the attendees’ investment proceeds would be used in Ponzi fashion to pay the 

interest or dividend payments of earlier investors; that a significant portion of their investment 

proceeds would be used to fund the solicitation of additional investors; or, that the investors’ 

returns were entirely dependant on Defendants’ soliciting new investors to finance such 

distributions. 

C. Private Placement Memoranda: Perpetuation of the Fraud 

35. BBC Equities distributed two private placement memoranda prepared by John 

Sellers to certain prospective investors. However, at least 150 investors never received any PPM 

before investing. 

36. BBC Equities represents in the PPMs that it uses investor funds to purchase 

commercial, industrial, retail, multi-family and single-family real estate, vacation properties, 

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vacant parcels and real estate development and construction. In truth, less than 40% of 

investment proceeds were invested, in real estate or otherwise. Most of the remaining proceeds 

were misappropriated by the Senior Defendants for personal uses, were used to pay earlier 

investors, or were used to solicit fresh investment proceeds in order to perpetuate Defendants’ 

scheme. 

 1. The First PPM

37. From February 2007 through April 2008, Defendants provided certain investors 

with a PPM prepared largely or entirely by John Sellers dated February 6, 2007 (the “First 

PPM”). The PPM offered Class B and Class C membership interests in BBC Equities, which it 

described as securities. The First PPM offered Class B membership interests in BBC Equities, 

which were not entitled to fixed annual distributions, but which were entitled to share pro rata 

with the holders of the Class A interests in profit distributions if and when declared by John 

Bravata and Trabulsy. The First PPM also offered Class C member interests, which yielded 

annual dividends of 8%, 10%, or 12%, redeemable on December 31, 2007, December 31, 2009, 

and December 31, 2011, respectively. During this period, Defendants raised approximately $21.2 

million from at least 136 investors. 

38. The First PPM repeated the misrepresentation that investor proceeds would be 

used to acquire real estate. In truth, well less than half of the proceeds were used for such 

purposes. Moreover, the First PPM misrepresented that neither John Bravata nor Trabulsy 

received a salary, fee or any other compensation from BBC Equities. The First PPM capped 

offering expenses and organizational costs associated with the offering, which included 

commissions and finder’s fees, at $800,000. In fact, throughout this period, John Bravata and 

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Trabulsy were extracting large sums of investor money to support their lavish lifestyles and to 

perpetuate their scheme. 

2. The Second PPM

39. From April 2008 through the present, Defendants provided certain investors with 

a PPM prepared largely or entirely by John Sellers dated April 17, 2008 (the “Second PPM”). 

The offering for the Second PPM continues through April 17, 2010, pursuant to its terms. It 

offers Class D membership interest in BBC Equities, which it describes as securities, yielding 

8% annual priority distributions. From April 2008 through July 2009, Defendants raised 

approximately $28.4 million from at least 369 investors. Their sales efforts apparently remained 

ongoing at least until the SEC lawsuit. 

40. Beyond the Senior Defendants’ overarching misrepresentation in both PPMs that 

the investment proceeds were used to acquire real estate, the Second PPM included other specific 

misrepresentations about the use of such proceeds. In the Second PPM, BBC Equities represents 

that proceeds of the offering remaining after distributions to investors are initially held in reserve 

for operations and other investment activities; that until the proceeds of the Second PPM are 

fully invested or used in connection with BBC Equities operations, they are deposited in income 

producing accounts and/or invested in a manner intended to produce a return for BBC Equities; 

and that although John Bravata and Trabulsy historically received an 8% finder’s fee for each 

investment they sold to BBC Equities investors, they did not receiver finder’s fees for the Second 

PPM. None of these representations were true. In fact, BBC Equities desperately needed the 

investor proceeds from the Second PPM for the purpose of making good on their promised 

returns to earlier investors. Further, while the Second PPM noted that John Bravata and Trabulsy 

received salaries, it never disclosed their wholesale misappropriation of investor proceeds. 

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41. While both PPMs stated that there is a risk that investor funds will need to be used 

to make the annual dividend payments to other investors – as opposed to payments being made 

out of BBC Equities’ operating profits – such disclosures were at best half truths. In truth, this 

was not a risk; it was a certainty. Given BBC Equity’s dire financial straits, the only way it could 

hope to meet its obligations to existing investors was to siphon the proceeds of new investors to 

pay earlier investors. In this regard, BBC Equities never disclosed to new investors that their 

quarterly distributions depended entirely on Defendants’ solicitation of future investors to 

finance such distributions. 

42. The Second PPM also includes misrepresentations about BBC Equities’ assets 

and liabilities. In the Second PPM, BBC Equities claimed that in addition to the eight properties 

originally contributed to BBC Equities by John Bravata and Trabulsy, BBC Equities had since 

acquired 28 additional real estate properties cumulatively valued at approximately $43 million, 

with only $34 million in mortgage debt; and that, as of February 28, 2008, BBC Equities had a 

Net Asset Value of $11,294,718, with total assets of $46,670,615 and total liabilities of 

$35,375,897. These misrepresentations grossly overvalued BBC Equities’ assets and 

undervalued its debt. In fact, according to the Senior Defendants’ own outside auditor, as of 

December 31, 2007, BBC Equities had total assets of $40,603,738 and total liabilities of 

$46,453,032. 

THE FRAUD 

A. Defendants’ Misrepresentations on the Internet, in Advertisements, and in General 

Solicitations 

43. The Senior Defendants solicited investors through the websites of BBC Equities 

and Bravata Financial and in paid advertisements. BBC Equities’ website, launched in November 

2008, included a “Fund Facts” page claiming that BBC Equities used investor proceeds to 

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purchase real estate, such as commercial offices, shopping centers, lifestyle malls, 150+ unit 

complexes, mezzanine loans, etc. Other versions of the “Fund Facts” page claimed that BBC 

Equities had raised over $80 million since May 1, 2006, and that the value of BBC Equities’ 

current real estate portfolio exceeded $400 million. In fact, by then BBC Equities had yet to raise 

so much as $50 million. Moreover, BBC Equities’ real estate portfolio was worth hundreds of 

millions of dollars less than BBC Equities claimed. Defendants distributed the “Fund Facts” page 

to investors through the mails and at the free lunch seminars. 

44. BBC Equities’ and Bravata Financial’s websites included an audio interview of 

John Bravata, during which the “interviewer” erroneously states that BBC Equities had raised 

over $150 million in less than a year. Instead of correcting the inaccuracy, however, John 

Bravata instead volunteers additional misinformation, claiming that BBC Equities had “done 

$400 million in the last 24 months.” In a February 2009 television interview, John Bravata 

similarly claimed that BBC Equities had raised $1 billion from investors since November 2008. 

In truth, by then BBC Equities was months away from even $50 million in investor proceeds. 

45. BBC Equities’ website included a profile of John Bravata falsely stating that he 

had published several books. If the profile is to be believed, Bravata literally wrote the book on 

the “Stealing of Wealth in America.” 

46. In December 2008, the Senior Defendants placed a paid advertisement in Forbes 

Magazine, which they also posted on BBC Equities’ website and mailed to investors. The Forbes 

advertisement stated that John Bravata’s net worth exceeded $54 million and, with the 

expectation of BBC Equities going public, was on track to reach $250 million. In fact, his true 

net worth never exceeded at most a few million dollars. These personal net worth figures directly 

tracked the equity raises of Bravata Financial and BBC Equities; BBC Equities raised $50 

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million, which is nearly equivalent to the $54 million claimed net worth of John Bravata. In the 

Forbes advertisement, John Bravata also stated that Bravata Financial had 1,200 wealth advisers 

across the country and was on pace to be close to 10,000 wealth advisers within a year. This too 

was false. Bravata Financial never had more than approximately 50 employees. 

47. In the Forbes advertisement, John Bravata proclaims BBC Equities’ motto as: 

“Safety first, returns second.” Both in that advertisement and in a subsequent television 

interview, John Bravata claims that he only gets paid if BBC Equities earns a profit, and if the 

investors make money. 

B. Defendants’ Misuse and Misappropriation of Investor Funds 

48. Precisely the opposite was true. While John Bravata and Trabulsy have enriched 

themselves and the Bravata family handsomely, they have done so to the detriment and at the 

expense of BBC Equities’ investors. The Senior Defendants have misappropriated at least $7.2 

million for their personal use, and for the use of Shari and Antonio Bravata – even though BBC 

Equities has never been profitable. 

1. John Bravata’s Misappropriation of Investors’ Proceeds 

49. John Bravata has used the money that he misappropriated from the BBC Equities’ 

investors to, among other things: (a) purchase a $90,268 Ferrari on June 15, 2006; (b) cause BBC 

Equities to spend at least $936,665 on the rent and mortgage payments for John and Shari 

Bravata’s $6 million vacation home, which the First PPM identified as one of BBC Equities’ 

investment properties; (c) cause BBC Equities to spend $762,586 towards building a new luxury 

residence for John and Shari Bravata; (d) buy an $84,902.50 Maserati luxury car for Shari 

Bravata; (e) buy at least $28,000 and $59,000 in jewelry, respectively, for himself and Shari 

Bravata; (f) pay a $46,566 down payment on a $500,000 catamaran, along with Trabulsy; (g) 

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purchase a $50,000 pleasure boat; (h) spend at least $27,500, exclusive of airfare, on hunting 

vacations in Russia and Canada; (i) make a total of $35,144 in lease payments on a 2007 Cadillac 

Escalade that John Bravata acquired from Trabulsy in August 2007; (j) make the monthly loan 

payments on a $52,335 2006 Corvette that John Bravata acquired from Trabulsy in September 

2007; and (k) purchase a $10,000 used Ferrari. 

50. John Bravata and Shari Bravata also have made over $315,000 in purchases for 

their own benefit using BBC Equities’ corporate credit card. John Bravata charged BBC 

Equities’ credit card for: (a) over $115,000 in artwork; (b) $47,253 for an item categorized as 

“shipboard charges”; (c) $29,500 on automotive improvements from a sports car restoration 

facility; (d) $26,670 for medical treatments at an “anti-aging” facility; and, (e) $4,900 for 

jewelry. In addition to these charges, Shari Bravata has charged BBC Equities’ credit cards more 

than $28,883 for personal expenditures such as travel, clothing, and dining. The Bravatas have 

yet to reimburse BBC Equities or its investors for any of these charges. 

51. In total, throughout the BBC Equities’ offerings, John Bravata and Shari Bravata 

have used more than $4.68 million of investor funds for their own benefit. 

52. It is only because John Bravata misappropriated investor proceeds that the 

Bravatas had sufficient funds to make these purchases and acquisitions. 

2. Trabulsy’s Misappropriation of Investors’ Proceeds 

53. Trabulsy has similarly misappropriated millions of dollars of investor proceeds 

from BBC Equities. Among other things, Trabulsy has used such funds to: (a) withdraw 

$297,000 in cash; (b) pay over $200,000 in personal expenditures through a BBC Equities credit 

card, including charging at least $80,000 for trips to Las Vegas and casinos in Detroit, and 

charging $19,600 for jewelry; (c) wire $90,000 to the Wynn Casino in Las Vegas; (d) pay over 

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$91,000 in rent and mortgage payments on his $1.17 million personal residence; (e) pay $36,503 

in lease payments on a Mercedes Benz S550 luxury car; (f) make $22,558 in monthly payments 

on the Escalade and Corvette described above, before he transferred the vehicles to John 

Bravata; (g) make the lease payments on a 2007 GMC Denali luxury SUV; and (h) purchase, 

along with John Bravata, the $500,000 catamaran. 

54. It is only because Trabulsy has misappropriated investor proceeds that he has had 

sufficient funds to make these purchases and acquisitions. 

3. Antonio Bravata’s Use of Investors’ Proceeds

55. Throughout the BBC Equities’ offerings, Antonio Bravata has used more than 

$444,384 in investor funds for his own benefit, including to (a) make a $22,000 down payment 

and subsequent $2,193.33 monthly land sale contract payments on a $398,000 house; (b) make a 

$30,000 down payment and subsequent $2,700 monthly mortgage payments on his current 

personal residence; (c) make a $28,744 down payment on an $119,900 Ferrari; (d) buy a Nissan 

SUV for $24,726.16; (e) make a $5,400 down payment and subsequent $819.97 monthly 

payments on a $42,887 Corvette (that Antonio Bravata subsequently sold before purchasing the 

aforementioned Ferrari); (f) buy a Honda sport motorcycle for $6,974.73; and (g) make a 

$12,000 down payment and subsequent monthly payments for a $42,000 Hummer SUV. 

56. It is only because of the misappropriation of investor proceeds that Antonio 

Bravata has been able to make the aforementioned purchases and acquisitions. 

C. The Senior Defendants Use BBC Equities Investment Proceeds to Pay 

Transaction-Based Compensation for the Purpose of Soliciting New Investors 

 

57. Investors unknowingly paid millions of dollars of additional investment proceeds 

to perpetuate the Senior Defendants’ Ponzi scheme. BBC Equities paid over $2.1 million in 

purported “commissions” or “finder’s fees” to its sales agents, including payments to John 

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Bravata, Trabulsy, Antonio Bravata, Aaron Simon, and John Sellers for soliciting investments. 

Bravata Financial’s unregistered brokers and sales agents had monthly BBC Equities sales 

quotas, and were paid commissions for sales of BBC Equities securities in excess of those 

quotas. After June 2008, BBC Equities paid Bravata Financial $7.22 million as reimbursement 

for employee compensation, $1.6 million of which John Bravata and Trabulsy kicked back to 

their personal bank accounts. Defendants never told investors about such exorbitant marketing 

expenses. 

58. BBC Equities’ investors also paid $5.3 million to “BBC Management, Inc.,” an 

entity that John Bravata and Trabulsy created to manage BBC Equities’ real estate portfolio and 

to support its solicitation of new investors. 

D. By July, 2009, The Only Way for Defendants to Avert BBC Equities’ Collapse was 

to Immediately Solicit Millions of Dollars in New Investor Proceeds 

59. As a result of the Senior Defendants’ misappropriation of investor proceeds, no 

more than $20.7 million of the more than $50 million BBC Equities raised has been spent 

acquiring real estate. Even that modest real estate portfolio is leveraged with debilitating debt, 

amounting to over $128 million in mortgages and other liabilities. 

60. According to its own financial statements, as of December 31, 2008, BBC

Equities had a negative net worth, with purported assets of $146,493,312 and liabilities of 

$158,005,354. Its operating expenses for 2008 were a staggering $3,896,245. For the first five 

months of 2009, BBC Equities’ real estate operations generated revenues of only $552,219, with 

expenses of nearly $6 million. 

61. In short, the Senior Defendants have run BBC Equities into the ground. Their 

malfeasance has rendered it financially insolvent. 

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62. On March 30, 2009, the Michigan Office of Financial and Insurance Regulation 

(“OFIR”) issued an order requiring BBC Equities and Bravata Financial to cease-and-desist from 

offering unregistered securities or acting as broker-dealers in the state of Michigan (the “OFIR 

Order”). 

63. In blatant violation of the OFIR Order, after its issuance, John Bravata instructed 

unregistered brokers from at least one Bravata Financial branch office to continue accepting 

proceeds from Michigan investors. On information and belief, he directed his employees to have 

potential investors leave the date blank on certain BBC Equities offering materials, thereby 

enabling such materials to be backdated. 

64. Since the OFIR Order, BBC Equities’ decline has continued. As of June 10, 2009, 

BBC Equities only had $131,316 in available cash. On July 8, 2009, the United States District 

Court, Northern District of Ohio, entered a $4.18 million judgment against BBC Equities and 

Trabulsy, jointly and severally, as guarantors of a defaulted promissory note relating to one of 

BBC Equities’ purported investment properties. Neither Trabulsy nor BBC Equities has the 

means to repay this note. On July 16, 2009, the plaintiff bank in the above-referenced lawsuit 

filed an action in this District alleging that John Bravata is also liable as a guarantor on the same 

defaulted promissory note. John Bravata is financially unable to repay the note. 

65. Further, BBC Equities owes its investors more than $1 million in quarterly 

dividends – money it does not have. 

66. In a desperate attempt to raise cash, BBC Equities has put some of its more 

valuable properties on the market, further diminishing any hope of future profitability. 

67. Prior to the SEC’s lawsuit, Bravata and Trabulsy had apparently hatched a plan 

to salvage and perpetuate their Ponzi scheme. In furtherance of their plan, they recently formed a 

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new related company referred to as either BBC Capital, LLC (“BBC Capital”) or Phoenix 

Venture Capital, LLC (“Phoenix”). Their plan appeared to involve this new company assuming 

ownership of Bravata Financial and other related entities. In a February 2009 television 

interview, John Bravata described BBC Capital as a venture capital fund and holding company 

for BBC Equities and Bravata Financial. In late June or early July, 2009, Trabulsy gave a radio 

interview promoting Phoenix. John Bravata and Trabulsy have stated that they intend to use 

BBC Capital or Phoenix to start a new offering to investors through a forthcoming private 

placement. Also, upon information and belief, Defendants have transferred assets to and 

between the 50 BBC Holdings, the XI BBC Holdings, and Ferndale Lofts, all in an effort to keep 

their scheme afloat, hide assets, and protect their ill-gotten gains. 

AARON SIMON, EQUITY TRUST COMPANY, AND THE PLAINTIFF’S LOSS

 68. Lincoln Crocker was friends with a longtime associate of John Bravata’s. In or 

around 2006, this associate, Aaron Simon, (the “Agent”) became employed by one of the 

Corporate Defendants. 

 69. The Agent, acting within the scope of his employment by the Corporate

Defendant, began soliciting Mr. Crocker to invest in BBC Equities. 

 70. On several occasions, the Agent provided Mr. Crocker with copies of the other 

Defendants’ misleading sales literature and materials. 

 71. For a long while, despite these persistent entreaties, Mr. Crocker resisted. 

However, the Agent represented to Crocker he had performed extensive due diligence on BBC 

Equities, including but not necessarily limited to having a controller diligently review the 

Defendants’ books, and by having an independent real estate expert review BBC Equity’s 

investment holdings. 

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 72. The Agent provided Mr. Crocker with a copy of the Second PPM. 

 73. The Agent represented to Mr. Crocker that he was Mr. Crocker’s personal 

investment advisor and that they had a fiduciary relationship. 

 74. During these solicitations, the Agent had a personal financial interest in Mr. 

Crocker investing in BBC Equities, since the Agent was paid a commission for his sales. 

 76. The Agent solicited several other members of the Class to invest in BBC Equities 

and otherwise materially participated in the sale of shares of BBC Equities to members of the 

Class, and, as an employee of Bravata Financial, and Kalamazoo Branch Manager for Bravata 

Financial, he directed other employees of one or more Corporate Defendants as they solicited 

investments in BBC Equities from members of the Class and/or otherwise materially participated 

in the sale of shares of BBC Equities to Class members. 

 75. Based upon these representations, beginning on or around August 21, 2008, Mr. 

Crocker invested approximately $250,000 in BBC Equities. Specifically, he ordered the funds 

from his 401k account of about $150,000 transferred electronically into BBC Equities, and 

transferred by check approximately $100,000 into BBC Equities’ Class D shares, which Crocker 

also understood to go by name the “Bravata Financial” fund. According to BBC Equity’s 

records, the non-IRA funds were deposited on August 22, 2008. and the IRA funds were 

deposited on October 14, 2008. These monies constituted Mr. Crocker’s entire retirement nest 

egg. 

 76. Mr. Crocker’s approximately $150,000 IRA rollover was performed by BBC 

Equities’ handpicked fund custodian, Equity Trust Company. One of the Corporate Defendants 

handled all of the interactions with Equity Trust Company, and Mr. Crocker never had any 

contact with Equity Trust Company. This pattern was repeated for other members of the Class; 

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in fact, Equity Trust Company was one of the only IRA fund custodians used by BBC Equities, 

meaning that Equity Trust Company had a near-exclusive or exclusive arrangement with one or 

more Corporate Defendants whereby the Corporate Defendant would funnel clients solely to 

Equity Trust Company, with Equity Trust Company then establishing an IRA for each client. 

Through this system, Equity Trust Company, which represented itself as Plaintiffs’ fund 

custodian and agent, served as the agent of a Corporate Defendant, and actually effected the 

Plaintiffs’ purchases of shares in BBC Equities and the Corporate Defendant’s sale of such 

shares. Equity Trust Company remained the custodian for the funds after they were invested in 

BBC Equities, and profited from handling Mr. Crocker’s and other Class members’ funds. 

 77. Equity Trust Company holds itself out as a secure choice for custody of

retirement investment accounts, boasting on its web site of the “high standards for IRA 

custodians,” a “well-established system of internal controls,” and “investment protection.” But, 

despite the duties that Equity Trust Company owed Mr. Crocker and other Class members as the 

custodian of their retirement accounts, it agreed to serve as BBC Equities’ agent and retirement 

fund custodian despite the fraudulent nature of BBC Equities’ investment scheme, and it failed to 

provide any assistance to Mr. Crocker or other Class members after the severe problems with 

BBC Equities became apparent. 

 78. After the OFIR Order, Mr. Crocker grew increasingly concerned about the safety 

of his investment with Defendants. On or about May 19, 2009, he provided a written request to 

Defendants for the distribution – that is, return to him – of his investment. 

 79. Defendants responded that such distribution would take 60 days to complete. 

 80. Equity Trust Company failed to assist Mr. Crocker or other Class members in 

redeeming their investments in BBC Equities, even though it served as custodian of the shares. 

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 81. Over the next 60 days, Mr. Crocker attempted to contact Defendants several 

times, without success. Eventually, on or about the 60th day after the distribution request, John 

Bravata’s brother Joe Bravata finally returned one of Mr. Crocker’s telephone calls. Joe Bravata 

said that the money was “coming,” and that John Bravata was in charge of disbursements and 

would call Mr. Crocker “the first of [the] next week.” To date, John Bravata has not called, and 

Mr. Crocker has not received his money. 

COUNT I

VIOLATIONS OF SECTION 12(a)(1) THE SECURITIES ACT 

(Regarding Defendants John J. Bravata, James Joe Bravata, Richard J. Trabulsy, Antonio 

M. Bravata, the Corporate Defendants, Aaron Simon, Equity Trust Company, and John 

Sellers) 

82. Paragraphs 1 through 81 above are realleged and incorporated herein by 

reference. 

83. By their conduct, these defendants directly or indirectly: (i) made use of means or 

instruments of transportation or communication in interstate commerce or of the mails to sell, 

through the use or medium of a prospectus or otherwise, securities as to which no registration 

statement was in effect; (ii) for the purpose of sale or delivery after sale, carried or caused to be 

carried through the mails or in interstate commerce, by any means or instruments of 

transportation, securities as to which no registration statement was in effect; and (iii) made use of 

any means or instruments of transportation or communication in interstate commerce or of the 

mails to offer to sell or offer to buy, through the use or medium of a prospectus or otherwise, 

securities as to which no registration statement had been filed. 

84. No valid registration statement was filed or was in effect with the Commission in 

connection with these defendants’ offer and sale of securities of BBC Equities. 

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85. By reason of the foregoing, these defendants have violated Sections 5(a) and (c) 

of the Securities Act (15 U.S.C. § 77e(a) and (c)). 

86. These defendant’s violations have caused Plaintiff and other members of the 

Class to suffer a substantial loss. 

87. Under Section 12(a)(1) of the Securities Act of 1933 (15 U.S.C. § 77l(a)(1)), 

these defendants are liable to Plaintiff and the Class for such actions. 

COUNT II 

VIOLATIONS OF SECTION 10(b) OF THE EXCHANGE ACT (15 U.S.C. §78j(b)) AND

RULE 10b-5 THEREUNDER (17 C.F.R. § 240.10b-5) 

(Regarding Defendants John J. Bravata, Richard J. Trabulsy, James Joe Bravata, the 

Corporate Defendants, and John Sellers) 

88. Paragraphs 1 through 87 above are realleged and incorporated herein by 

reference. 

89. By their conduct, these defendants, in connection with the purchase or sale of 

BBC Equities’ securities, by the use of any means or instrumentalities of interstate commerce or 

by the use of the mails, directly or indirectly: (a) employed a device, scheme or artifice to 

defraud; (b) made untrue statements of material fact and omitted to state material facts necessary 

in order to make the statements made, in the light of the circumstances under which they were 

made, not misleading; and (c) engaged in an act, practice, or course of business that has been or 

is operating as a fraud or deceit upon other persons, including purchasers and sellers of such 

securities. 

90. These defendants acted with scienter. 

91. In ignorance of the materially false and misleading nature of these defendants’ 

statements, Plaintiff and the other members of the Class purchased BBC Equity securities. But 

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for the fraud alleged herein, Plaintiff and other Class members would not have purchased the 

securities. 

92. Plaintiff and the other members of the Class were substantially damaged as a 

direct and proximate result of their purchases of their BBC Equity securities. 

93. This claim was brought within two years after discovery of this fraud and within 

five years of the making of the statements alleged to be materially false and misleading. 

94. By virtue of the foregoing, these defendants have violated Section 10(b) of the 

Exchange Act and Rule 10b-5 promulgated thereunder, and are liable to Plaintiff and the 

members of the Class, each of whom has been damaged as a result of such violation. 

COUNT III 

VIOLATIONS OF SECTION 15 THE SECURITIES ACT (15 U.S.C. § 77o) 

(Regarding Defendants John J. Bravata, James Joe Bravata, John Sellers, Richard J. 

Trabulsy, Antonio M. Bravata, Aaron Simon, and the Corporate Defendants) 

95. Paragraphs 1 through 94 above are realleged and incorporated herein by 

reference. 

96. These defendants, at the time that the unregistered securities were sold, conducted 

and participated, directly and indirectly, in the operation and management of the Corporate 

Defendants. 

97. Because of their positions of control and authority over the Corporate Defendants, 

these defendants were able to, and did, control the security registration process. 

98. Therefore, these defendants were controlling persons of the Corporate Defendants

within the meaning of Section 15 of the Securities Act, and are liable for the Corporate 

Defendants’ violations of Section 12 of the Securities Act, as alleged in the First Claim for 

Relief, above. 

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COUNT IV 

RELIEF AS TO DEFENDANT SHARI BRAVATA 

99. Paragraphs 1 through 98 above are realleged and incorporated herein by 

reference. 

100. Altogether, the Senior Defendants received over $50 million in ill-gotten funds 

through their illegal offering of securities. 

101. The Senior Defendants used at least $1,872,000 of BBC Equities investor funds to 

acquire the assets described above for Shari Bravata’s benefit. 

102. Shari Bravata currently possesses or controls investor funds and assets purchased 

with investor funds. 

103. The offering proceeds that Shari Bravata received from the Senior Defendants and 

currently possesses or controls constitute ill-gotten gains. 

104. Shari Bravata has no legitimate claim to the ill-gotten funds that she received 

from the Senior Defendants or to any assets that the she acquired or that the Senior Defendants 

acquired for her with those ill-gotten funds. 

105. Rather, the ill-gotten funds rightfully belong to the Plaintiff and other Class 

members. 

COUNT V 

INTENTIONAL FRAUD 

(Regarding Defendants John J. Bravata, Richard J. Trabulsy, John Sellers, James Joe 

Bravata, and the Corporate Defendants) 

106. Paragraphs 1 through 105 above are realleged and incorporated herein by 

reference. 

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107. These defendants made several misrepresentations to the public at large and to 

Mr. Crocker and other Class members as set forth above. 

108. These defendants knew that these statements were false when they made them. 

109. These defendants intended for Plaintiff and the Class members to rely upon their 

false statements. 

110. Plaintiff and Class members did rely on these defendants’ false statements, and 

would never have invested in BBC Equities were it not for the false statements. 

111. These defendants have enjoyed substantial financial gain, and Plaintiff and other 

Class members have suffered severe financial loss, as a result of Plaintiff’s and Class members’ 

reliance on the false statements. 

COUNT VI 

NEGLIGENT MISREPRESENTATION 

(Regarding the Senior Defendants) 

112. Paragraphs 1 through 111 above are realleged and incorporated herein by 

reference. 

113. These defendants made several misrepresentations to the public at large and to 

Mr. Crocker and the members of the Class as set forth above. 

114. These defendants should have known that these statements were false when they 

made them. 

115. These defendants intended for Plaintiff and the Class members to rely upon their 

false statements. 

116. Plaintiff and the Class members did rely on these defendants’ false statements, 

and would never have invested in BBC Equities were it not for the false statements. 

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117. These defendants have enjoyed substantial financial gain, and Plaintiff and other 

Class members have suffered severe financial loss, as a result of Plaintiff’s and Class members’ 

reliance on the false statements.

COUNT VII 

SILENT FRAUD 

(Regarding the Senior Defendants) 

118. Paragraphs 1 through 117 above are realleged and incorporated herein by 

reference. 

119. These defendants made several representations to the public at large and to Mr. 

Crocker and the Class members as set forth above; having done so, they had an obligation to 

inform Plaintiff and the Class members that they were in fact diverting money from BBC 

Equities for their personal use and running a Ponzi scheme. 

120. These defendants never disclosed these facts to Plaintiff or to other Class 

members, despite the fact that they knew them to be true. 

121. These defendants intended for Plaintiff and the Class members to rely upon their 

silence as to these important facts. 

122. Plaintiff and the Class members did rely on these defendants’ silence, and would 

never have invested in BBC Equities had they known the truth about the operation. 

123. These defendants have enjoyed substantial financial gain, and Plaintiff and the 

Class members have suffered severe financial loss, as a result of Plaintiff’s and the Class 

members’ reliance on the these defendants’ failure to inform them of these salient facts about 

BBC Equities. 

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COUNT VIII 

NEGLIGENCE 

(Regarding the Senior Defendants.) 

124. Paragraphs 1 through 123 above are realleged and incorporated herein by 

reference. 

125. These defendants owed Mr. Crocker and the other members of the Class a duty to 

direct the Plaintiff’s and Class members’ funds to proper investment vehicles, and/or to properly 

oversee their investments. 

126. These breached this duty by directing the Plaintiff’s and the other Class members’ 

investments into a mismanaged investment scheme, and by mismanaging the investments. 

127. As a result of these defendants’ negligence in investing Plaintiff’s and Class 

members’ funds in BBC Equities and in mismanaging BBC Equities, Mr. Crocker and others 

similarly situated have suffered financial loss. 

COUNT IX 

BREACH OF FIDUCIARY DUTY 

(Regarding the Senior Defendants) 

128. Paragraphs 1 through 127 above are realleged and incorporated herein by 

reference. 

 129. These defendants owed Mr. Crocker and other members of the Class a fiduciary 

duty, for reasons including, but not limited to, the fact that they held themselves out as 

investment advisors to Plaintiff and the other Class members, and the fact that they purported to 

serve Plaintiff and other Class members as competent custodians of their investments and as 

participants in a common investment venture. 

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 130. These defendants breached this fiduciary duty by investing Mr. Crocker and other 

Class members’ money in a ponzi scheme; failing to perform adequate due diligence on BBC 

Equities; mismanaging BBC Equities; withdrawing funds from BBC Equities for personal use; 

and by profiting from these things at Mr. Crocker and other Class members’ expenses. 

 131. As a result of the Agent’s breach of fiduciary duty, Mr. Crocker and other 

members of the Class have suffered substantial financial losses. 

COUNT X 

INTENTIONAL FRAUD 

(Regarding Defendant Aaron Simon.) 

132. Paragraphs 1 through 131 above are realleged and incorporated herein by 

reference. 

133. The Agent made several misstatements to Plaintiff and other members of the 

Class, including but not limited to his claims that BBC Equities’ books were in order. 

134. The Agent also adopted several misstatements made by the other Defendants, by 

providing Plaintiff and other members of the Class with promotional materials including but not 

limited to the second PPM. 

135. The Agent made these misrepresentations in order to induce Plaintiff and other 

members of the Class to invest in BBC Equities. 

136. The Agent knew, or should have known, that these representations were false 

when he made them. 

137. Plaintiff and other members of the Class relied upon these misrepresentations, and 

would not have invested in BBC Equities were it not for the misrepresentations. 

138. The Agent has financially benefitted from Plaintiff’s and other members of the 

Class’ investment in the securities, and Plaintiff has suffered financially from his investment. 

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COUNT XI 

NEGLIGENT MISREPRESENTATION 

(Regarding Defendant Aaron Simon.) 

139. Paragraphs 1 through 138 above are realleged and incorporated herein by 

reference. 

140. The Agent made several misstatements to Plaintiff and other members of the 

Class, including but not limited to his claims that BBC Equities’ books were in order. 

141 The Agent also adopted several misstatements made by the other Defendants, by 

providing Plaintiff and other members of the Class with promotional materials and the second 

PPM. 

142. The Agent made these misrepresentations in order to induce Plaintiff and other 

members of the Class to invest in BBC Equities. 

143. The Agent knew, or should have known, that these representations were false 

when he made them. 

144. Plaintiff and other members of the Class relied upon these misrepresentations, and 

would not have invested in BBC Equities were it not for the misrepresentations. 

145. The Agent has financially benefitted from Plaintiff’s and other members of the 

Class’ investment in the securities, and Plaintiff and other members of the Class have suffered 

financially from their investment. 

COUNT XII 

SILENT FRAUD 

(Regarding Defendant Aaron Simon.) 

146. Paragraphs 1 through 145 above are realleged and incorporated herein by 

reference. 

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147. The Agent made several affirmative statements to Plaintiff and other members of 

the Class regarding the desirability of investing in BBC Equities, and provided Plaintiff with 

promotional materials and the second PPM. 

148. Having done so, the Agent was obligated to inform Plaintiff and other members of 

the Class of the true nature of BBC Equities: that it was indeed “to good to be true,” and was in 

fact a fraud run for the benefit of the Defendants. 

149. The Agent knew, or should have known, that these omissions rendered his 

affirmative statements misleading. 

150. Plaintiff and other members of the Class did not know, and could not reasonably 

have known, the truth of these omitted statements; relied upon the statements that were rendered 

misleading by the omissions, and would not have invested in BBC Equities if the omitted 

information had been revealed. 

151. The Agent has financially benefitted from Plaintiff’s and other members of the 

Class’ investment in the securities, and Plaintiff and other members of the Class have suffered 

financially from their investment. 

COUNT XIII 

BREACH OF FIDUCIARY DUTY 

(Regarding Defendant Aaron Simon.) 

152. Paragraphs 1 through 151 above are realleged and incorporated herein by 

reference. 

 153. The Agent owed Mr. Crocker and other members of the Class a fiduciary duty, 

and in fact expressly told Mr. Crocker that he was his fiduciary. 

 154. The Agent breached this fiduciary duty by soliciting Mr. Crocker and other 

members of the Class to invest in a ponzi scheme; failing to perform adequate due diligence on 

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BBC Equities; providing false information to Mr. Crocker and other Class members regarding 

BBC Equities; and by profiting from the exchange at Mr. Crocker’s and other Class members’ 

expense. 

 155. As a result of the Agent’s breach of fiduciary duty, Mr. Crocker and other 

members of the Class have suffered substantial financial loss. 

COUNT XIV 

BREACH OF AGENCY 

(Regarding Defendant Aaron Simon.) 

156. Paragraphs 1 through 155 above are realleged and incorporated herein by 

reference. 

157. The Agent served as Mr. Crocker’s and other members of the Class’s agent for 

purposes of Mr. Crocker’s and other members of the Class’s investments with BBC Equities. 

158. The Agent breached his duty as such by soliciting Mr. Crocker and other 

members of the Class to invest in a ponzi scheme; failing to perform adequate due diligence on 

BBC Equities; providing false information to Mr. Crocker and other members of the Class 

regarding BBC Equities, and by profiting from the exchange at Mr. Crocker’s and other 

members of the Class’s expense. 

 159. As a result of the Agent’s breach of duty, Mr. Crocker and other members of the 

Class have suffered substantial financial loss. 

COUNT XV 

NEGLIGENCE 

(Regarding Defendant Equity Trust Company.) 

160. Paragraphs 1 through 159 above are realleged and incorporated herein by 

reference. 

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161. Equity Trust Company owed Mr. Crocker and and other members of the Class a 

duty to properly oversee their retirement investments. 

162. Equity Trust Company breached this duty by using Mr. Crocker’s and other 

members of the Class’s retirement savings to purchase an interest in BCC Equities on their 

behalf. 

163. Equity Trust Company owed Mr. Crocker and other members of the Class a duty 

of care to properly administer their retirement accounts by properly effecting the liquidation their 

BBC Equities interests and distributing the proceeds to the investors. 

164. Equity Trust Company breached this duty by failing to effect the liquidation of 

Mr. Crocker’s and and other members of the Class’ interests in BBC Equities and by failing to 

distribute the proceeds to the investors. 

165. As a result of Equity Trust Company’s negligence in investing its clients’ funds in 

BBC Equities and in failing to effect the liquidation of its clients’ interests in BBC Equities, Mr. 

Crocker and other members of the Class have suffered financial loss. 

COUNT XVI 

BREACH OF FIDUCIARY DUTY 

(Regarding Defendant Equity Trust Company) 

166. Paragraphs 1 through 165 above are realleged and incorporated herein by 

reference. 

 167. Equity Trust Company owed Mr. Crocker and other members of the Class a 

fiduciary duty. 

 168. Equity Trust Company breached this fiduciary duty by investing Mr. Crocker and 

other Class members’ money in a ponzi scheme; failing to perform adequate due diligence on 

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BBC Equities; and by profiting from these exchanges at Mr. Crocker and other Class members’ 

expense. 

 169. As a result of the Agent’s breach of fiduciary duty, Mr. Crocker and other 

members of the Class have suffered substantial financial losses. 

COUNT XVII 

BREACH OF AGENCY 

(Regarding Defendant Equity Trust Company.) 

170. Paragraphs 1 through 169 above are realleged and incorporated herein by 

reference. 

171. Equity Trust Company served as Mr. Crocker and other Class members’ agent for 

purposes of their investments with BBC Equities. 

172. Equity Trust Company breached its duty as such by investing Mr. Crocker and 

other Class members money in a ponzi scheme; failing to perform adequate due diligence on 

BBC Equities; and by profiting from these exchanges at Mr. Crocker and other Class members’ 

expense. 

173. As a result of the Agent’s breach of duty, Mr. Crocker and other Class members 

have suffered substantial financial losses. 

COUNT XVIII 

 SALE OF A SECURITY BY MEANS OF UNTRUE STATEMENTS IN VIOLATION OF 

MICHIGAN’S UNIFORM SECURITIES ACT 

(Regarding Defendants John J. Bravata, Richard J. Trabulsy, Antonio M. Bravata, James

Joe Bravata, John Sellers, Equity Trust Company, Aaron Simon, and the Corporate 

Defendants) 

174. Paragraphs 1 through 173 above are realleged and incorporated herein by 

reference. 

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175. The investments offered by BBC Equities and sold to Plaintiff and the Class 

members constitute securities under Michigan’s Uniform Securities Act, MCL 451.501 et seq.

(the “Michigan Act”). 

176. These defendants made untrue statements of materials facts to Plaintiff and the 

Class members regarding the securities, and knew that these representations were false when 

they made them. 

177. These defendants made these untrue statements of material facts to Plaintiff and 

the Class members as a means to offer or sell a security – namely, the investments in BBC 

Equities. 

178. Neither Plaintiff nor any of the Class members knew that these statements were 

untrue, and none of them could have known of the untruth in the exercise of reasonable care. 

179. As a result of these defendants’ untrue statements of material facts in the offering 

or sale of a security, Plaintiff and the Class members have suffered considerable financial loss.

COUNT XIX 

SALE OF A SECURITY BY OMISSION OF MATERIAL FACTS IN VIOLATION OF 

THE MICHIGAN ACT 

(Regarding Defendants John J. Bravata, Richard J. Trabulsy, Antonio M. Bravata, Aaron 

Simon, James Joe Bravata, John Sellers, Equity Trust Company, and the Corporate 

Defendants) 

180. Paragraphs 1 through 179 above are realleged and incorporated herein by 

reference. 

181. These defendants, in offering securities for sale to Plaintiff and the Class 

members, made statements regarding the soundness and performance of investments in BBC 

Equities. Having done so, under the circumstances in which the statements were made, they had 

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an obligation to inform Plaintiff and the Class members that some or all of the Defendants were 

in fact diverting money from BBC Equities for their personal use and running a Ponzi scheme. 

182. These defendants’ omission of these material facts rendered these defendants’ 

statements misleading. 

183. Neither Plaintiff nor any of the Class members knew these omitted materials 

facts, and could not have known them in the exercise of reasonable care. 

184. As a result of these defendants’ omission of material facts in the offering or sale 

of a security, Plaintiff and the Class members have suffered considerable financial loss. 

COUNT XX 

SALE OF AN UNREGISTERED SECURITY REQUIRED TO BE REGISTERED BY 

THE MICHIGAN ACT 

(Regarding Defendants John J. Bravata, Richard J. Trabulsy, Antonio M. Bravata, Aaron 

Simon, James Joe Bravata, John Sellers, Equity Trust Company, and the Corporate 

Defendants) 

185. Paragraphs 1 through 184 above are realleged and incorporated herein by 

reference. 

186. These defendants failed to register the investments in BBC Equities with the State 

of Michigan or any division thereof as securities, despite the Michigan Act’s requirement that all 

non-exempt securities be registered with the state. 

187. The investments in BBC Equities did not under any exemption to the Michigan 

Act’s registration requirement. 

188. As a result of Plaintiff’s and the Class members’ purchases of these unregistered 

securities, they have suffered considerable financial loss. 

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COUNT XXI 

VIOLATION OF 18 U.S.C. § 1962(c) 

(Regarding Defendants John J. Bravata, Richard J. Trabulsy, James Joe Bravata, John 

Sellers, and the Corporate Defendants) 

189. Paragraphs 1 through 188 above are realleged and incorporated herein by 

reference. 

190. The BBC Equities fraudulent investment scheme as set forth in this Complaint 

(the “Enterprise”) is an association-in-fact within the meaning of 18 U.S.C. § 1961(4), comprised 

of these defendants as the Enterprise’s members. The Enterprise is an organization, functioning 

as an ongoing and continuing unit that was created or used as a tool by these defendants in order 

to effectuate through the pattern of racketeering activity as alleged in this Complaint and achieve 

the common goals of financial gain from investors’ proceeds. These defendants are each a 

“person” within the meaning of RICO, 18 U.S.C. § 1961(3), and they are each a “person” 

distinct from one another. 

191. Defendants’ racketeering activities as described in this Complaint amounted to a 

common course of conduct, which the Enterprise intended to deceive and harm Plaintiff and the 

Class Members. Each racketeering activity alleged was related, had similar purposes, involved 

the same or similar participants and methods of commission, and had similar results affecting 

similar victims, including Plaintiff and the Class. These defendants racketeering activities were 

part of its ongoing business and constituted a continuing threat to the property of Plaintiff and the 

Class, at least until the time of the SEC lawsuit. The Enterprise functioned as a continuing unit 

with each member of the Enterprise knowing its (or their) role and performing its part or role to 

assure the Enterprise’s continued success. 

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192. Members of the Enterprise participated together in the fraudulent scheme as 

described above in this Complaint. These defendants conducted the affairs of the fraudulent 

investment scheme set forth above through a pattern of racketeering activity in violation of 

RICO, 18 U.S.C. § 1962(c), in that they intentionally employed a scheme or artifice to defraud 

Plaintiff and the Class using the mails or wires in furtherance of that scheme. 

 193. The sale of investments in BBC Equities, in the manner described in this 

Complaint, engaged in and affected interstate commerce. 

 194. One or more of these defendants exerted sufficient control over the Enterprise so 

that they were able to direct and conduct the affairs of the Enterprise. 

 195. These defendants conducted and participated in the affairs of the Enterprise 

through a pattern of racketeering activity that included acts indictable under 18 U.S.C. § 1341 

(mail fraud) and § 1343 (wire fraud) as described in this Complaint. 

 196. These defendants’ use of the U.S. Mail and wires in furtherance of the Enterprise 

involved thousands of communications, including, but not limited to: 

 a. communications between each other and the other Defendants in 

furtherance of their scheme; 

 b. communications including financial payments by these defendants in 

furtherance of the activities of the fraudulent scheme, including payments for the minimal 

investments that BBC Equities actually made as a “fig leaf” for the widespread fraud and 

diversions from the Corporate Defendants to other Defendants’ personal accounts for their 

personal use; 

 c. communications between one or more of these Defendants and the Class 

members including mailing investment-related materials, receiving payments from Plaintiff and 

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the Class members in the mail or through the wires, and establishing accounts via the mails and 

wires, encompassing hundreds of similar communications in furtherance of the fraud as detailed 

above in this Complaint; 

 d. communications between the these defendants and Equity Trust Company 

regarding Plaintiffs’ retirement accounts; 

 e. communications between these defendants and their agents, such as Aaron 

Simon. 

 197. Defendant BBC Equities also maintained a website through which it 

communicated with Plaintiff and Members of the Class. 

 198. These defendants also used the U.S. Mail and wires to run its extensive 

promotional campaign to solicit new “investments” from Class members. 

199. Plaintiff and the Class members have been injured in their property by reason of 

the violations alleged in this Complaint in that Plaintiff and the Class members have invested 

millions of dollars in now apparently worthless shares of BBC Equities that they would not have 

bought had these defendants not engaged in their pattern of racketeering activity. 

200. The injuries to Plaintiff and the Class members were directly and proximately 

caused by these defendants’ racketeering activity as described above. 

201. By virtue of these violations of 18 U.S.C. § 1962(c), these defendants are liable to 

Plaintiff and the Class members for three times the damages Plaintiff and the Class members 

have sustained, plus the cost of this suit, including reasonable attorney’s fees. 

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COUNT XXII 

VIOLATION OF 18 U.S.C. § 1962(a) 

(Regarding the Executive Defendants) 

202. Paragraphs 1 through 201 above are realleged and incorporated herein by 

reference. 

203. The Corporate Defendants are limited liability companies controlled by the 

Executive Defendants, who also retain substantial interests in the Corporate Defendants. 

 204. The Executive Defendants received, and may still receive, income from the 

pattern of racketeering described in this Complaint. 

 205. The Executive Defendants used and invested the income from the pattern of 

racketeering activity alleged in this Complaint to invest in the operation of the Corporate 

Defendants in order to perpetuate their fraudulent scheme. 

 206. The Enterprise described in this Complaint affected and continues to affect 

interstate commerce. 

 207. By virtue of these violations of RICO, 18 U.S.C. § 1962(a), Plaintiff and the Class 

members were injured in their property by the Executive Defendants’ use and investment of 

racketeering income, and the Executive Defendants are liable to Plaintiff and the Class members 

for three times the damages Plaintiff and the Class have sustained, plus costs of this suit and 

reasonable attorneys’ fees. 

COUNT XXIII 

VIOLATION OF 18 U.S.C. § 1962(b) 

(Regarding the Executive Defendants) 

208. Paragraphs 1 through 207 above are realleged and incorporated herein by 

reference. 

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209. The Corporate Defendants are limited liability companies controlled by the 

Executive Defendants, who also retain controlling interests in the Corporate Defendants. 

 210. The Executive Defendants received, and may still receive, income from the 

pattern of racketeering described in this Complaint. 

 211. The Executive Defendants used and invested the income from the pattern of 

racketeering activity alleged in this Complaint to invest in the operation of the Corporate 

Defendants in order to perpetuate the Enterprise. 

 212. The Enterprise affected and continues to affect interstate commerce. 

 213. By virtue of these violations of RICO, 18 U.S.C. § 1962(b), Plaintiff and the 

Class members were injured in their property by the Executive Defendants’ use and investment 

of racketeering income, and the Executive Defendants are liable to Plaintiff and the Class 

members for three times the damages Plaintiff and the Class members have sustained, plus costs 

of this suit and reasonable attorneys’ fees.

COUNT XXIV 

VIOLATION OF 18 U.S.C. § 1962(d) 

(regarding all Defendants) 

214. Paragraphs 1 through 213 above are realleged and incorporated herein by 

reference. 

215. Section 1962(d) of RICO provides that it “shall be unlawful for any person to 

conspire to violate any of the provisions of subsection (a), (b), or (c) of this section.” 

 216. Defendants have violated § 1962(d) by conspiring to violate RICO, 18 U.S.C. § 

1962(c), as alleged in this Complaint. The object of this conspiracy has been and is to conduct or 

participate in, directly or indirectly, the conduct of affairs of the Enterprise through a pattern of 

racketeering activity. 

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 217. Defendants, as co-conspirators, have engaged in numerous overt acts in 

furtherance of the conspiracy as described in this Complaint, including multiple instances of mail 

and wire fraud violations, including but not limited to: 

 a. knowingly soliciting “investors” for BBC Equities; 

 b. knowingly serving as a fund custodian for BBC Equities’ “investors” and 

providing the victims’ money with BBC Equities; 

 c. knowingly transferring money from the Corporate Defendants to individuals for 

their personal use; 

 d. knowingly communicating by mail and wire with Plaintiff and the Class members 

to maintain accounts and solicit further payments to BBC Equities; and 

 e. collecting, transferring, and hiding shared revenues. 

 218. The nature of the above-described co-conspirators’ acts in furtherance of the 

conspiracy gave rise to a plausible inference that each of the Defendants agreed to the objective 

of violating RICO, 18 U.S.C. § 1962(c), and that by conspiring to violate RICO, 18 U.S.C. § 

1962(c), they were aware that their ongoing fraudulent acts were and are part of an overall 

pattern of racketeering activity. 

 219. Plaintiff and the Class members have been injured in their property by reason of 

the conspiracy alleged herein in that Plaintiffs and the Class members have provided funds to 

BBC Equities that have been apparently lost to the Enterprise, and that Plaintiff and the Class 

would not have paid had Defendants not conspired to violate RICO, 18 U.S.C. § 1962(c). 

 220. The injuries of Plaintiffs and the Class members were directly and proximately 

caused by the conspiracy to violate RICO, 18 U.S.C. § 1962(c), as described above. 

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 221. By virtue of these violations of RICO, 18 U.S.C. §1962(d), Defendants are liable 

to Plaintiff and the Class members for three times the damages Plaintiffs and the Class have 

sustained, plus the cost of this suit, including reasonable attorneys’ fees. 

COUNT XXV 

ACCOUNTING 

(Regarding the Senior Defendants, Antonio Bravata, and Shari Bravata) 

222. Paragraphs 1 through 222 above are realleged and incorporated herein by 

reference. 

223. These defendants (the “Accounting Defendants”) received funds either directly or 

indirectly from Plaintiff and the other member of the Class, 

 224. Defendants, though their promotional materials, PPMs, and otherwise, 

represented that these funds would be used for business purposes and would be a good 

investment for Plaintiff and the other members of the Class. 

 225. In fact, only a small portion of the funds were used for business purposes, and 

Defendants in fact used the money for extravagant personal purchases. 

 226. Defendants also produced misleading financial statements that purported to show 

how Plaintiff’s and the other Class members’ money had been spent but which in fact were 

wildly inaccurate. 

 227. Defendants also moved funds extensively amongst themselves and to other

persons, and created a complex web of corporate entities, in an apparent attempt to hide the 

proceeds of Plaintiff and the Class members’ investments. 

 228. Because of Defendants’ actions, Plaintiff and the members of the Class cannot 

now determine the location and disposition of their money. 

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COUNT XXVI 

CONVERSION 

(Regarding the Senior Defendants, Antonio, Bravata, and Shari Bravata) 

229. Paragraphs 1 through 228 above are realleged and incorporated herein by 

reference. 

230. These defendants sold investments in BBC Equities to Plaintiff and the other 

members of the Class, and accepted money from Plaintiff and the other members of the Class for 

what they claimed were legitimate investments. 

231. Defendants represented to Plaintiff and the other Class members that they would 

be able to withdraw their money from the purported investment system. 

232. In fact, these defendants took the money that Plaintiff and the other Class 

members “invested” and appropriated it for their own use. 

233. No Defendant ever indicated to the Plaintiff, class, or any member thereof that the

funds “invested” would in fact be taken by these defendants’ for their own use and purposes. 

234. These defendants have refused the Plaintiff’s and other Class members’ requests 

for the return of their money. 

COUNT XXVII 

CONSPIRACY 

(Regarding all Defendants) 

235. Paragraphs 1 through 234 above are realleged and incorporated herein by 

reference. 

236. At all relevant times, all Defendants joined in a common effort to commit the 

tortious conduct and violations of state and federal law alleged in this complaint. 

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237. Defendants made their fraudulent misstatements and committed silent fraud as 

alleged above in part in order to induce Plaintiff and other Class members to invest in BBC 

Equities. 

238 The Defendants planned and together pursued the fraudulent course of conduct. 

239. As a result of the Defendants’ conspiracy, Plaintiff and the Class members have 

suffered considerable financial loss. 

RELIEF REQUESTED 

WHEREFORE, Plaintiffs pray for relief and judgment, as follows: 

 A. Declaring this action to be a proper class action pursuant to Rule 23(a) and Rule 

23(b)(3) of the Federal Rules of Civil Procedure on behalf of the Class defined herein; 

 B. Awarding Plaintiff and the members of the Class compensatory damages; 

 C. Awarding Plaintiff and the Class pre-judgment and post-judgment interest, as well 

as reasonable attorneys’ fees, expert witness fees and other costs; 

D. Ordering the Accounting Defendants to provide an accounting to Plaintiff and the 

members of the Class of the use, disposition, and location of the money that they invested with 

Defendants; and 

 E. Awarding such other relief as this Court may deem just and proper. 

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JURY DEMAND 

 Pursuant to Federal Rule of Civil Procedure 38(b), Plaintiffs demand a trial by jury on all 

issues so triable. 

Respectfully submitted,

 THE MILLER LAW FIRM, P.C. 

/s/ Christopher D. Kaye____________________ 

Mark L. Newman (P51393) 

Christopher D. Kaye (P61918) 

 950 W. University Drive, Suite 300 

 Rochester, MI 48307 

 (248) 841-2200 

Dated: August 28, 2009 Attorney for Plaintiff 

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