Detroit -- The U.S. Securities and Exchange Commission accused operators of the Billionaire Boys Club of running a $53 million Ponzi scheme.
The SEC said two Michigan men, John Bravata and Richard Trabulsy, promised investors annual returns of 8 percent to 12 percent, then used money from recent investors to pay older investors -- the definition of a classic Ponzi scam.
In the meantime, the pair lived large. Their personal holdings include a $6 million vacation home, a catamaran worth half a million dollars and a $120,000 Ferrari, The Detroit News reported Wednesday.
