What You Have to Know
- The SEC has known as for public administrative proceedings towards a barred dealer serving a five-year jail sentence for fraud.
- The previous dealer induced about $20 million in losses to an insurance coverage firm, forcing it to shutter, prosecutors stated.
The Securities and Alternate Fee has known as for public administrative proceedings towards a barred dealer who’s serving a five-year jail sentence for a fraud that, in response to prosecutors, bankrupted the oldest Black-owned insurance coverage firm within the U.S. and compelled it to liquidate.
In a Feb. 15 order, the SEC stated it was “needed and applicable within the public curiosity that public administrative proceedings be instituted” towards Bradley C. Reifler, 63, of New York to find out whether or not allegations that he defrauded the insurance coverage firm had been true, if he had any defenses towards these allegations, and “what, if any, remedial motion is suitable within the public curiosity.”
The SEC ordered {that a} public listening to for the aim of taking proof be convened at a time and place to be fastened by additional order, that Reifler shall file a solution to the allegations contained within the order inside 20 days after service of the order, and that the Division of Enforcement and Reifler shall conduct a prehearing convention inside 14 days of service of the reply.
If Reifler doesn’t file the directed reply, or fails to seem at a listening to or convention after being duly notified, he “could also be deemed in default and the proceedings could also be decided towards him upon consideration” of the order, the SEC stated.
North Carolina Insurer Liquidated
Reifler was sentenced in October to 5 years in jail for his position in a scheme to defraud a North Carolina-based life insurance coverage firm, in response to the Justice Division and courtroom paperwork.
Reifler induced about $20 million in losses to the corporate, which led to it being ordered into liquidation, Assistant Legal professional Normal Kenneth A. Well mannered Jr. of the Justice Division’s Legal Division and Eric Shen, inspector in command of the U.S. Postal Inspection Service Legal Investigations Group, stated in a information launch on the time.
The agency was North Carolina Mutual Life Insurance coverage Co., in response to courtroom paperwork filed in associated circumstances. The corporate, began in 1898, was the oldest Black-owned insurance coverage firm within the U.S., in response to Insurance coverage Journal.
In keeping with the Justice Division’s Dec. 1, 2020 indictment towards Reifler in U.S. District Court docket for the Center District of North Carolina and different courtroom paperwork, the CEO and founding father of Forefront Capital Holdings was liable for investing about $34 million of the insurance coverage firm’s property based mostly on pointers contained in a belief settlement and funding advisor settlement.
Nevertheless, as an alternative of investing the property in safe funding autos as required by the agreements, Reifler misappropriated the funds for the advantage of his personal firms after which used the funds for improper functions, in response to the Justice Division.
