What You Must 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 triggered about $20 million in losses to an insurance coverage firm, forcing it to shutter, prosecutors stated.
The Securities and Change 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 keeping with 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 “obligatory and acceptable 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 acceptable 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 mounted 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 look 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 keeping with the Justice Division and court docket paperwork.
Reifler triggered about $20 million in losses to the corporate, which led to it being ordered into liquidation, Assistant Legal professional Basic Kenneth A. Well mannered Jr. of the Justice Division’s Felony Division and Eric Shen, inspector answerable for the U.S. Postal Inspection Service Felony Investigations Group, stated in a information launch on the time.
The agency was North Carolina Mutual Life Insurance coverage Co., in keeping with court docket paperwork filed in associated instances. The corporate, began in 1898, was the oldest Black-owned insurance coverage firm within the U.S., in keeping with Insurance coverage Journal.
Based on 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 court docket paperwork, the CEO and founding father of Forefront Capital Holdings was accountable for investing about $34 million of the insurance coverage firm’s property primarily based on pointers contained in a belief settlement and funding advisor settlement.
Nonetheless, as a substitute of investing the property in safe funding automobiles as required by the agreements, Reifler misappropriated the funds for the good thing about his personal firms after which used the funds for improper functions, in keeping with the Justice Division.
