SEC Charges Recidivist Violator with Securities Fraud Following Incarceration for Ponzi Scheme
The Securities and Exchange Commission has charged Antonio Bravata, a recidivist securities law violator and convicted felon, with securities fraud that was conducted while he was serving a sentence for an earlier investment fraud.
The Securities and Exchange Commission has charged Antonio Bravata, a recidivist securities law violator and convicted felon, with securities fraud that was conducted while he was serving a sentence for an earlier investment fraud.
Bravata was previously charged by the SEC, and later by criminal authorities, for his participation in a $50 million Ponzi scheme conducted through BBC Equities LLC and headed by his father, John Bravata.
In 2013, he was found guilty in a jury trial, sentenced to five years of incarceration, and ordered to pay $7 million in restitution. In the parallel SEC case, Bravata was found liable for securities fraud, enjoined from future violations, and ordered to pay disgorgement and penalties of $670,000.
The SEC’s latest complaint alleges that while he was on home confinement as a result of his criminal conviction, Bravata offered securities in Primo World Ventures LLC, a company he owned and controlled.
Bravata allegedly prepared Primo’s offering materials, which he modeled on those provided to BBC Equities investors. The materials allegedly concealed his role in Primo, his criminal record, and falsely stated that another individual was in charge of the company’s daily operations.
The SEC claims that on Primo’s website, Bravata falsely stated that the company utilized a team of lawyers, accountants, real estate professionals, and analysts, when in fact no such team existed and Primo was limited to Bravata, his incarcerated father, and a former BBC Equities salesman who was enlisted to assist with the scheme.
The complaint states that before Bravata was able to complete any sales of Primo securities, the SEC’s division of enforcement detected his scheme and halted the Primo offering.
The SEC’s complaint was filed in the U.S. District Court for the Eastern District of Michigan.
Without admitting or denying the allegations, Bravata agreed to a judgment that includes a permanent conduct-based injunction prohibiting him from participating in the issuance, purchase, offer, or sale of any securities to the public and a $75,000 penalty. The settlement is subject to court approval.
