Source: United States Department of Justice News
A New York man was sentenced today to five years in prison for his participation in a scheme to defraud a North Carolina-based life insurance company that caused approximately $20 million in losses to the company and caused it to be ordered into liquidation.
According to court documents, Bradley C. Reifler, 62, of New York, was the CEO and founder of Forefront Capital Holdings and was responsible for investing approximately $34 million of the insurance company’s assets according to guidelines contained in a trust agreement and investment advisor agreement. Rather than investing the assets in secure investment vehicles as required by the agreements, Reifler misappropriated the funds for the benefit of his own companies and then used the funds for improper purposes, such as paying for overhead expenses and repaying prior investors to whom he owed money. Reifler also diverted other funds to risky investment vehicles that did not comply with the investment guidelines.
In addition, during internal and external audits performed in 2016, Reifler sent the life insurance company fabricated documentation for deals with individuals and entities that did not exist. As a result of Reifler’s fraud, the life insurance company was able to recoup only a portion of the approximately $34 million that it entrusted to Reifler and was ultimately ordered into liquidation. Reifler pleaded guilty in May 2022 to wire fraud.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
The USPIS investigated the case.
Trial Attorneys Tom Tynan and Michael McCarthy of the Criminal Division’s Fraud Section prosecuted the case.