Accused Ponzi schemer back in the news

The man accused of running a $50 million Ponzi scheme involving local victims violated a judge's order by spending tens of thousands of dollars without permission.

John Bravata will have to pay back more than $30,000 he got from taking out a loan on his life insurance policy, after a judge had frozen his assets.

The Securities and Exchange Commission found evidence of lavish spending, including more than $2,700 to buy a new refrigerator and dryer. Bravata admitted in court he knew he wasn't allowed to take out the loan and wouldn't speak to 13abc.

His attorney Greg Bartko says Bravata really needed the money for school tuition and utility bills. "Until you're walking in a person's shoes, you don't know what you'd do in like circumstances."

But few people have been in circumstances like John Bravata's --who was busy making telephone calls as we spoke to his attorney.

The SEC says he funneled millions of investor dollars, through his company BBC Equities, into his own pocket. Bravata has said he's innocent from the beginning.

In the meantime, the SEC wants to make sure Bravata will have as much money as possibe to pay back his investors and they're watching his spending closely.

Bravata has to pay back the money by next week, and with his assets frozen, it's unclear how he'll come up with the cash. But one thing is for certain: if he doesn't pay the money back, he's going to jail.

Bravata's main offices were in Michigan; that's why the case is being handled in Detroit. But Bravata had many investors from northwest Ohio.

We know of several offices he had in our area. They're all closed.

Dozens of people here invested. Several have told us their life savings could be lost.

Huntington Bank is foreclosing on properties worth tens of millions of dollars. Bravata's company BBC Equities owned all of them.

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