Federal judge eyes alleged Ponzi schemer for contempt

John Bravata, accused of a $50 million Ponzi scheme, must appear before U.S. District Court Judge David Lawson next month to explain away a $37,000 loan against two life insurance policies, reports The Kalamazoo Gazette.

U.S. Securities and Exchange Commission officials claim the loans violate a freeze Lawson placed on Bravata’s assets, and want Lawson to hold Bravata in civil contempt of court.

“Bravata’s attorney, Gregory Bartko, argued that the life insurance policies were purchased before the formation of BBC Equities, Bravata’s real estate investment firm, and therefore unconnected to the alleged fraud,” according to the Gazette.

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