All language subtitles for American Greed s11e04 Billionaire Boys Bust

In this episode of American Greed,
brazen con man John Bravado welcomes

investors into BBC Equities, a real
estate fund that some insiders call the

Billionaire Boys Club.

I got to tell you that, and this is a
bold statement, we'll back it up, not

of our clients ever lost a dollar.

Bravado's Bravado guarantees investors
he can make them rich with no risk to

their life savings.

The philosophy that we have and what we
use is very simple. Never put your

principal dollars at risk.

Never put your principal dollars at
risk.

He brings in over $50 million, saying
that all the other financial pros are

crooks. But he's different.

We believe if we can make the investor
money, we deserve to make money. And if

we can't, we don't deserve to get paid.

But when the billionaire boys club
crumbles, investors learn that Bravada

regrets about doing exactly what his
book title says.

Stealing the wealth of America.

There's not anything that I have done
that I look at and say, God damn, I wish

didn't do that again.

And many victims are left wishing they'd
listen to one piece of this con man's

advice.

I don't want you to believe anything
that I say.

What you must do is say, prove it to me.

In the suburbs outside Detroit,
Michigan, con man John Bravada has been

an investment scam that has brought in
more than $50 million.

In 2011, with the feds closing in, he's
working out a possible escape plan.

Mail fraud and wire fraud, if those are
the charges, don't even carry criminal

jail time in Italy.

There's never been a case in Italy that
they can find where... Italy actually

allowed an extradition in a case that's
greater punishment than their own.

Thinking he can avoid justice overseas,
Bravada rents an apartment in Milan and

begins researching how to become an
Italian citizen.

To the FBI, his actions mean only one
thing.

I truly believe John Bravada was looking
to go to Italy and never return.

John Bravada grew up modestly, raised
alone by his widowed mother in

Michigan.

Though he says he dreams of working for
the CIA, he never finishes college.

In his 20s, Bravada works as a cop in
his hometown, noting on his application

that he likes being in the middle of
attention.

Though he will later claim to work for
the Drug Enforcement Agency, it's out on

patrol in Kalamazoo that he first gets a
view of the good life.

John, while he was working in law
enforcement, while he was driving

would observe some of the nicer
communities, nicer homes that he would

And that was the type of lifestyle that
he wanted to have for himself and his

family.

Bravada gets his shot at riches when he
hands in his badge and begins selling

life insurance, first for John Hancock
and later at New York Life.

He was a solid salesman, and his book of
business grew appreciably in

not a long period of time.

But Bravada sets his sights higher.

Eventually, he moves to Brighton,
Michigan.

a small town about 40 miles northwest of
Detroit.

It's here, in 2003, that John opens the
Bravada Financial Group, running it out

of this unassuming building on a busy
commercial strip.

Three years later, he launches BBC
Equities, a real estate investment fund.

Bravada partners with Richard R .J.

Trabulsi. who he had previously hired at
New York Life.

To R .J., Mr. Bravado was a father
figure, and he was a young,

individual who looked up to John
Bravado.

John pulled all the strings at BBC.

He was the figure that was larger than
life. He projected himself as larger

life, and I think R .J. bought into
that.

From the very start, Bravada is out in
front, making the right impression the

moment he walks in the door.

When you first look at John Bravada,
John comes across as very polished.

Salt -and -pepper gray hair, mustache,
custom suit, cusslings, monogrammed

shirts.

He's a huge guy.

He's tall.

He's muscular.

He has these form -fitting suits, and he
stands out in a crowd. I mean, he

steals all the oxygen in a room.

Driving a $90 ,000 Ferrari, Robata knows
the importance of projecting wealth.

John Robata's thing was that... This is
the only industry where people will

drive up in their Mercedes or their BMWs
and hand over all their money to their

financial advisor who rents an apartment
and drives a Yugo.

The point that he was making was that
that's crazy and you should invest with

someone like me because that would
guarantee that their investment would be

successful as his was.

So what's the secret of his success?

Not long after starting BBC Equities,
Bravada is at the Ritz -Carlton Hotel

giving a presentation to a few dozen
people.

At first, it's not even obvious that
Bravada is actually selling anything.

A John Bravada sales pitch would last
almost exactly an hour.

He never mentioned BBC equities for the
first 50 minutes. What he did for the

first 50 minutes was instill terror in
the audience about the dangers of

investing. For most people out in this
room, you sat and watched your wealth

disappear.

And you did it because your financial
planners, the media, said do what?

Stay still. By the end of that 50
minutes, you were terrified and you

know what to do with your money?

The last 10 minutes?

Basically, it was John Bravada saying, I
alone can help you.

I got to tell you that, and this is a
bold statement, we'll back it up. Not

of our clients ever lost a dollar.

The way Bravada can help is by offering
investors a piece of his so -called real

estate empire.

Flipping through slides, Bravada shows
off properties where tenants are paying

rent and generating big bucks for his
investors.

He made it sound like his company had
already acquired a huge real estate

portfolio that was already cash flowing.
And he couldn't get to the bank fast

enough because they were producing so
much cash.

In this pitch, recorded later, Rabada
hits upon a point he hammers home time

time again.

BBC equities is not only lucrative, it's
also safe.

Number one rule.

my money and principal of my dollars
must be guaranteed.

I cannot risk losing my principal
dollars.

Rule number two, I must get as high of
interest rate I can get on my money

without violating rule number one.

Bravado says his fund is structured with
safety in mind.

At BBC Equities...

Our fund's set up a little bit
different.

BBC Equity guarantees principal dollars
of money that goes into the fund. It's

backed by CDs at a bank, Comerica Bank.
They're a trust company.

So principal's guaranteed.

Bravada claims that for every investor
dollar stored safely at Comerica, the

bank will lend him $2 to make real
estate purchases.

A six -year -old investor who has a
modest nest egg, the notion of it being

protected, and kept safe in a
certificate of deposit, but with the

large interest rate that you couldn't
normally get in a certificate of

and on top of a large fixed interest
rate, a profit dividend, that was

That was the best of all possible
worlds.

On top of this guaranteed protection,
Rabada promises investors between 8 %

12 % interest, as well as potential
dividends.

You get 12 % as fixed, it's guaranteed,
it's paid quarterly.

That money can be reinvested or taken
out, whatever you decide to do.

Last year, we did pay a dividend. Our
dividend was a 10 % dividend, which

our stockholders or our investors saw a
22 % rate of return.

Roboto lets investors know that the way
he gets paid is different than most fund

managers.

Here's the deal I made. I went out to my
people and said, I don't want a salary

from BBC Industries.

I don't want to get paid off management.

What I want to get paid off, if I can do
what I say I'm going to do for this

fund, that is create profit, which is
the dividend.

I deserve to get paid.

But if I can't do that, I don't deserve
to get a paycheck.

And that's how this fund works.

Investors like what they hear.

And right away, his former insurance
clients, friends, neighbors, and even

family begin to sign up.

I think.

The thing that hooked most investors was
his promise that their nest egg would

be safe. No matter what, you will not
lose your principal dollars.

And to a lot of these older investors,
that was everything to them.

If they have doubts, many seem reassured
by Bravado's claims about his law

enforcement days.

My dream was to get in the CIA. I worked
for the Drug Enforcement Agency for

about three years. I think what that
does, that builds trust amongst the

that he wanted to have invest with his
company.

Others are hooked by Bravado's verbal
jujitsu.

He said things like, don't ever trust a
word I'm saying.

I don't want you to believe anything
that I say.

I want you to research it yourself.

What you must do is say, prove it to me.

Well, ironically, if somebody tells you
don't trust anything I'm saying, it

engenders credibility.

Between May 2006 and February 2007, BBC
Equities received $3

.2 million from investors.

And things are just getting started.

Terry Makowski comes to Bravada's office
in late 2007, seeking a job as a

marketing coordinator.

He's interviewed by one of John
Bravada's employees, his son, a recent

school grad named Antonio.

He was asking the slighted questions for
the typical interview, you know, where

do you see yourself in five years, ten
years?

And so I asked him, I said, well, where
do you see yourself by the time you're

30? And he said, I see myself being a
billionaire.

Amazed by Antonio's pluck, Makowski then
meets the head honcho.

John was interesting. He was very nice.
He's very charismatic. I mean, he really

puts you at ease when you meet him.

And John had this way of when you're
talking to him, like you're the only

in the room.

So this is the location, one of the
locations that we held a seminar at,

actually several, Outback Steakhouse in
Canton on Ford Road.

Working with a marketing company, she
sends invites to Bravada's preferred

audience.

He said he wanted the 55 to 80 -year
-olds because they were going into

retirement or have been in retirement
and have access to lump sums of cash.

Next on American Greed.

After luring retirees with the promise
of a free meal, John Bravada gets them

fork over millions.

He could have sold these people
anything.

He was a good salesman. Yeah, he could
have sold them anything.

John Bravada has a pitch that seems
custom -tailored to his retirement -aged

audience.

I believe that your principal dollar is
your life.

You must not, you cannot rip your
personal dollar.

Okay? Because you can't afford to lose
$34 ,000 and get it back.

It took your whole life to build it.

As Bravada brings in more and more
money, he hires others to make the pitch

following the script he's perfected.

One of the first to take the job is
John's son, Antonio, who tries his

to follow his dad's lead.

Last year we did pay a dividend. Our
dividend was a 10 % dividend.

For 2007, we paid a 10 % dividend.

Which means our stockholders or our
investors saw a 22 % rate of return.

If you had your money last year for
2007, you would have made 22%.

Antonio, in turn, helps bring in other
pitchmen, including his former football

coach, Jeff Minock.

I said, I don't know nothing about the
financial business.

And they go, oh, don't worry. We'll
teach you everything you need to know.

We'll give you a script. You've got to
memorize the script.

And they said, we'll have agents with
you so you don't have to sell anything.

You just have to do the presentation.

For the bravadas, it seems that knowing
what you're talking about is less

important than looking like you do.

The day they hired me, they asked me if
I had any suits.

And I said, I got one. I said, I can get
married and buried.

And they took me down to a men's
clothing store where they make custom

suits. And they bought me two suits.

As a matter of fact, the suit I'm
wearing right now.

the Bravada bought formula.

Once he's been made to look the part,
Minock is ready to get out there and

pitching.

John Bravada used to have us talk a
little bit about BBC equities.

He didn't want us to talk a lot about
it. Just talking about the 8 % return

that your principal was safe and your
money would go into a CD at Comerica

Terry Welsh gets the invite to a bravado
seminar in 2008.

A workplace safety trainer from Lansing,
Michigan, Welsh eats his free meal,

listens to the pitch, and likes what he
hears.

There was probably two things. The first
thing was the fact that they said that

they were guaranteeing that the
investors would not lose money.

The second thing was it sounded like
they had a very, very timely business

strategy that could be very profitable.

Welsh says he'd like to hear more.

And a few weeks later, Antonio Bravada
visits him and his wife Janice at their

home.

Yeah, that was him in the picture,
absolutely. And I remember when he sat

in that chair. I still remember him just
sitting.

there and talking to us like he was a
friend. We had a face -to -face

conversation with him.

And also I remember him having on a
really fancy ring, a very, very nice

And when we looked out the window, he
had an extremely expensive car.

Antonio lures the Welsh family with
promises of an 8 % return.

But Terry still has questions.

He sends Tony a document asking him to
confirm a number of promises he's made

about BBC equities.

It says, please fax back confirmation
that the following statements regarding

BBC equities are accurate. First, in
2007, BBC equities earned

net distributable profits exceeding $50
million.

Tony even noted there, says not exact,
but close.

In 2007, BBC Equities LLC purchased real
estate exceeding $500 million

in value.

That figure was something Tony gave me
previously.

And he said on here, he says, not exact,
but close.

Let's go back to this. After receiving
this signed assurance, Welsh and his

clean out their IRAs and invest $41 ,000
in late June 2008.

By this point, Bravada has brought in
nearly $25 million.

Many of his employees buy into BBC
equities, including pitchman Jeff

marketing coordinator Terry Makowski.

I was excited about it. I'm like, wow,
this is a really great opportunity.

And I was really hopeful. I gave him the
benefit of the doubt.

Coming up.

The truth behind BBC equities begins to
emerge.

If you say you're going to do something
with investors' money, you better do it.

If you say you're going to do one thing
and do another, that's wrong.

All across Michigan, investors in BBC
Equities are thrilled to see their money

grow.

There were a lot of investors who told
us and who testified that they were so

delighted with BBC Equities that they
told their friends and their friends

an investment.

Investors have been led to believe that
their interest is generated by Bravada's

real estate empire.

But this is hardly the case.

BBC's real estate empire, in truth, was
a couple of dozen homes and some

dilapidated car washes, mostly in Ohio.

How then does Bravada keep sending out
checks?

While making big promises, he offers
investors that thinly veiled warning.

I don't want you to believe anything
that I say.

What you must do is say, prove it to me.

Buried deep inside investor paperwork
that some people receive is an

BBC Equities is using investors' funds
to make payments to other investors, not

storing it safely at Comerica Bank, as
he promised.

And that is hardly Bravada's only lie.

John Bravada was not in the DEA. He was
never a federal agent.

He was a public safety officer at the
Kalamazoo Police Department for a little

over a year, and he was fired from that
job when they found that he had lied on

his initial application.

His lies don't stop there.

Throughout the scheme, Rabada has made a
simple promise.

So the first thing is that our fund is
set up a little different. We don't

charge fees to our investors. I think
we're the only fund that I know of that

doesn't do that. We have a philosophy
that says if we don't make money, you

don't make money. So we have to make
money for our investors in order to make

that happen.

In truth, however, Rabada pays millions
in sales commissions and finder's fees

to his employees, who jokingly refer to
BBC Equities as the Billionaire Boys

Club.

One of these salesmen, Bravado's son,
Antonio, shows off his newfound wealth

this not -so -subtle video.

Not bad for a fresh -faced youngster.

And Antonio is not even the guy at the
top of BBC equities.

John Bravado was the first person to
belly up to the trough. He was getting

before anybody else.

and getting paid a lot right from the
get -go. In 2007, he decided he should

start collecting a salary of $1 .2
million.

Now, understand, BBC Equities was never
profitable.

Not in 2007, not in 2008, never.

Over the years, Bravada pockets more
than $7 million worth of investor funds

he's promised to keep safe.

The money that he told people he would
protect, he was spending.

on himself to finance his lifestyle and
to project an image of success so that

he could get more investment dollars.

Days after bringing in his first
investors, Rabada shells out $90 ,000

Ferrari.

Later, he buys an $85 ,000 Maserati for
his wife.

And statements from his black Amex card
are a catalog of greed gone wild.

Featuring enormous charges at the finest
establishments for food, clothes,

cruises, travel, and anti -aging
treatments.

According to employee Terry Makowski,
Bravada is not shy about sharing his

spending habits.

He was driving his Ferrari in the
summertime and driving his Cadillac

in the winter and, you know, talked very
freely about, you know, oh, I have $500

shoes and, you know, a $1 ,000 shirt and
a $3 ,000 suit, and I went on a $25

,000 hunting trip. I mean, he dropped
price tags on everything.

Bravada lives in an impressive $1 .2
million home.

But it's not enough.

He begins building a 22 ,000 square foot
lakefront mansion.

Though it's never completed, an
architect's animation shows that Bravada

planning a palace of greed built on the
backs of his hardworking investors.

In a call to American greed, Bravada
insists there's nothing wrong with any

this. I was worth a lot of money before
I started this company.

So prior to me starting this company, I
lived in a million -dollar house. I

drove a Ferrari.

I had a vacation home in Naples, Florida
with an $8 million home before I

started this company.

So the fact that in 2009 I'm going to
now build a new home and have a new

it was my money.

So I had a right to buy a house that I
want to buy or a car that I want to buy.

It didn't come from investors' money.

But court records show Bravado was
nearly broke when he started BBC

And then almost all the money he brought
in from 2006 to 2009 came from his

investors.

Up next, the economy takes a tumble and
Bravado's real estate empire

comes crashing down.

He wanted to live that high life, and he
just got carried away. He thought he'd

hit an artesian wall of money, and when
it ran dry, he was in deep trouble.

While promising safety, John Bravada has
paid himself millions

and frittered away millions more on...

Properties that include several shabby
car washes and parking lots.

In August 2008, he hires a real estate
consultant to help refinance some of

these investments.

After taking a close look at Bravada's
so -called empire, this expert hits him

with a hard dose of reality.

This portfolio is hemorrhaging money.

All of these properties are underwater.

You might as well just mail the keys
back to the bank. They are worthless.

They're less than worthless.

John Bravada looked at the consultants
and said, this is a bad report. We're

screwed.

And things are only getting worse.

We begin our coverage tonight of what's
been called the worst financial crisis

in modern times.

As the world economy goes into freefall
in September 2008, John Bravada needs to

keep nervous investors from asking for
their money back.

August of 2008, Bravada is given this
report.

It says the property portfolio is
worthless.

What does he do? He sends out a letter
to all of his investors.

in September of 2008, one month later.

And he writes, there might be a crisis
on Wall Street, but there's no crisis at

BBC Equities.

He says, we are sitting on cash, and our
portfolio position is strong.

None of that was true.

Bravada needs to do more than just tell
his investors everything is okay.

He needs to bring in new investors so he
can keep paying out interest.

To do this, He tweaks his pitch to fit
the times.

In the Depression, the richest people
that came out of the Depression were

that bought real estate.

It'll be the same today.

So how do you participate in it?

His answer, of course, is by investing
with DBC Equities.

It's an outstanding opportunity to buy
real estate today.

Outstanding opportunity to buy real
estate today. The greatest wealth

in our history is taking place today.
The problem is most people in this room

out there in the public.

don't know about it, or don't know how
to take advantage of it.

While rejiggering what he says, Bravada
also embarks on a new marketing blitz to

carry his message out of local
restaurants to a nationwide audience.

I'm Tiffany Tift reporting for America's
premier experts. Today we are in

Orlando for a very special event. We are
honoring America's top 20 experts, and

today we have with us John Bravada, who
is an expert in financial services.

How are you doing today? Thank you very
much. Thanks for having us. So you guys

kind of do a lot of everything, right?
It may seem like Bravada is being asked

about his company by a top -notch
journalist.

But this is actually one of two new paid
ads Bravada uses to sing the same old

song. We get to put our philosophy to
our investors. And the philosophy is

it's safety first of your principal.
Never put the principal at risk. And

it's get the highest rate of return that
we can get on it. Now, how we do that

is this. At BBC Equities, we secure your
principal dollars. That is unheard of

in the marketplace today.

Bravada also pays to appear in Forbes
magazine.

where he's pictured on a private jet and
claims his net worth may soon exceed

$250 million.

He presented those to investors as these
media outlets choosing him because of

his success and profiling him because of
what he's achieved, when in fact they

were paid for by Bravada using investor
dollars.

And this isn't Bravada's last piece of
self -promotion.

The man who once told investors not to
trust him uses $25 ,000 of their dollars

to hire a ghostwriter.

In return, he gets his name on a book
that once again seems like a warning.

It's titled The Stealing of Wealth in
America.

By 2009, John Bravada has stolen enough
wealth To move from his old office

building to the 17th floor of a shining
golden tower.

But the fun can't last forever.

By mid -2009, BBC Equities was in a
death spiral.

It had $128 million of debt obligations
on its real estate. It had

$45 million of investor obligations.

And on top of that...

it needed to find a way to pay 10 % to
12 % guaranteed interest annually

to its investors.

It was too much, and the money was
drying up.

In March 2009, the state of Michigan
ordered BBC Equities to cease

And before long, the U .S. Securities
and Exchange Commission begins looking

into Bravado's company as well.

We had heard a report that an investor
had tried to get out her $300 ,000

-plus investment in 2009, and no one was
getting back to her, and she was

becoming increasingly concerned.

Based on that, the SEC began an
investigation into the finances of BBC

But Bravada isn't about to throw in the
towel.

Coming up.

As BBC equities crumbles, John Bravada
continues to tell investors the same old

lies. I am a big believer that real
estate today, there's been no better

invest than today. The greatest wealth
transfer in history has taken place

before our eyes, and it's happening in
the real estate industry.

Would you fall for John Bravada's lies?

Take a closer look at his pitch at
AmericanGreed .CNBC .com.

Want inside information from the show?

Join the Greed social network.

Like us on American Greed's Facebook
page.

We'll be right back.

By June 2009, it's becoming increasingly
clear that something is very wrong at

BBC Equities.

Despite his current problems, the guy in
charge is hardly slowing down.

John Bravado hastily convened conference
calls where he doubled down on the lies

and said everything is going great.

I am a big believer that real estate
today, there's been no better time to

invest than today.

We have a bunch of new irons in the
fire. We're actually going to be

out into new and fantastic
opportunities.

The benefit of you investing in a
company like ours is that you have other

people and experts that are finding
opportunities like this to help invest

dollars in areas that you may not even
think of.

Stay with us. Things are going to be
fantastic. They're going to get even

better.

Bravada launches a new fund called
Phoenix Venture Capital, a name that

be one more admission of what Bravada is
really up to.

It's ironic, again, because the image of
a phoenix is a bird emerging from the

ashes, right? Well, that was very apt.
The ashes were BBC equities.

And he decided phoenix, the story behind
phoenix was going to keep them

interested and more importantly, keep
them from trying to redeem their money

because BBC equities didn't have enough
to give back to investors.

Terry Welsh is one of those people who
doesn't yet know that all his family's

money is gone.

He hears about Phoenix from Antonio
Bravado in the summer of 2009.

He said that this was an opportunity to
take the money that was in the original

BBC Equities account.

put it into an account where they would
be doing similar things but take

advantage of what they expected to be as
a public offering, and

that those funds hopefully would go
through a literal doubling in their

in the process of going public.

But there will be no IPO.

In July, the SEC obtains a court order
shutting down Rivada and BBC Equities.

The company has now raised more than $50
million, but investigators find there's

almost nothing left.

In late July 2009, the SEC went into
court to shut down BBC Equities.

We took a look at BBC Equities' books
and records, and what did they have in

bank? $22 ,000.

The SEC's civil lawsuit isn't the only
heat Bravada is feeling.

So creating wealth and preserving
assets.

What's John trying to get at with that?

Soon, a criminal investigation gets
underway.

Led at first by FBI agent Eric Newberg
and later by agent Kelly Cease. This

website right here talks about... Before
long, the feds have an ace up their

sleeve.

Realizing he could be headed to prison,
Bravada's young partner, R .J. Trabulsi,

begins working with the FBI, recording
phone conversations with his boss.

In one of these calls, Bravada reveals
that he may have found a way out of his

current troubles.

Mail fraud and wire fraud, if those are
the charges, don't even carry criminal

jail time in Italy.

There's never been a case in Italy that
they can find where Italy actually

allowed an extradition in a case that's
greater punishment than their own.

Bravada isn't just talking, though.

In February 2011, he purchases a ticket
to head to Milan, Italy.

When the feds get word of his plans,
they act quickly to stop him.

When we found out that...

John Bravado was leaving for Italy.

We wanted to make sure that he didn't
leave the country because we were under

the impression with him that he might
not come back.

So we did a complaint in order to get
the arrest warrant.

We planned to arrest him before he got
on his flight, which was scheduled for a

Tuesday, but he ended up leaving on a
Sunday.

All of a sudden, RJ called me and said,
John's already left.

Gosh darn it moment.

In Milan, Bravada rents an apartment,
starts applying to become an Italian

citizen, opens a bank account, and gets
to work.

John Bravada thought he could start a
new fund.

I assume that it was going to be the
same type of fund that he wanted to

in the United States.

Bravada will later say he was just there
on a business trip.

and had no real intention of moving
overseas.

The feds don't buy it.

I don't believe that. I think that he
was probably planning to stay in Italy.

I don't know that for sure, but he
certainly took a lot of steps for just

on a business trip.

Whatever his true plans are, Robada's
visa expires, and he flies back to the U

.S. in May 2011.

Traveling on a round -trip ticket, he
plans to return to Italy in less than

months. But when he lands in New York,
he discovers that's not happening.

I was not present during the arrest, but
I can only imagine that he did not

expect that when he got off the
airplane.

I think John had a hard time coming to
terms with it, and I think John thought

that he was untouchable and he wouldn't
be held accountable.

that he could get back into the U .S.
and get back out with nobody knowing.

Coming up, John Bravada remains
unrepentant.

That's hard to say what goes on inside
John Bravada's mind.

And victims struggle to pick up the
pieces.

We were hurt.

We were hurt.

We were hurt by this.

Despite the fact that John Bravada's
many lies are caught on tape, he and his

son Antonio decide to go to trial in
2013.

I think John Bravada decided to go to
trial because he thinks he is larger

life, thought he could come to trial,
take the stand, testify in front of the

jury and convince them of his lies, much
like he convinced his investors.

At the end of an eight -week trial,
Bravada testifies in his own defense for

four days.

From the outset, though, he gives the
jury exactly what he's given his

investors. He lied within the first
minute of taking the stand.

He had claimed to graduate from Grand
Valley State University with an

associate's degree, and it turns out
that Grand Valley State is a four -year

college and doesn't have associate's
degrees.

Like?

He did when he was pitching prospective
investors.

He did not let the truth stand in the
way of a compelling narrative.

But angry investors offered a more
compelling narrative.

The jury finds John Bravada guilty on 14
counts of wire fraud and one count of

conspiracy. He gets 20 years in prison.

His son, Antonio, is convicted of
conspiracy and gets five years.

A key piece of evidence against him is
the facts he sent to Terry Welch when he

put his lies in writing.

I think to some extent, Tony is a victim
of his father.

But Tony also jumped in with both feet.

After cooperating with authorities...

R .J. Trabose pleaded guilty to one
count of wire fraud and received just

four years in prison.

During the course of his scam, John
Bravado made a simple pitch.

Get rich, but always keep your nest eggs
safe.

You see, I believe we never put our
principle at risk because I can't go

and make it up again.

If I'm retired, how do I go back and
make up 30 -40 % of the money that I

lost, that I'm planning on living on,
that I sat there and needed in my life?

How do I go back and make that money up
again?

I can't go back to work.

Well, don't lose it in the first place.

In the end, over 400 investors gave more
than $50 million to the man who

promised them safety, then lived large.

feel badly at all about people buying
expensive cars and houses or anything

as long as it's honest profit but this
was theft it was theft

and we were stolen from i can see at
this point no way

that my wife or i will ever be able to
retire at all

with typical bravado Authorities say
Bravada has

tried to start a new fund from behind
bars.

And in a call to American greed, Bravada
says he's not to blame for the

financial ruin left in the wake of the
billionaire boys club.

Instead, he points a finger at the
salesman who pitched his product, the

investors who misinterpreted his words,
and the government who shut him down

before he could hit it big.