A New York man was sentenced today to five years in prison for participating in a fraud scheme that cost a North Carolina-based life insurance company nearly $20 million in losses and ordered it to be liquidated.
According to court documents, 62-year-old Bradley C. Reifler of New York is the CEO and founder of Forefront Capital Holdings, which has invested approximately $34 million in the insurance company’s assets in accordance with guidelines contained in its trust and investment advisory agreements. I had a responsibility to invest. Rather than invest the assets in a safe investment vehicle as required by the contract, Leifler diverted the funds for his own company’s benefit, paying for overhead costs and avoiding any costs he had previously borrowed. used funds for improper purposes, such as repaying investors in Reifler has also diverted other funds into risky investment vehicles that do not comply with investment guidelines.
Additionally, during internal and external audits conducted in 2016, Leifler sent life insurance companies falsified documents regarding transactions with non-existent individuals and entities. As a result of Reifler’s fraud, life insurers were only able to recover part of the approximately $34 million he entrusted to Reifler, which was eventually ordered into liquidation. Reifler pleaded guilty to wire transfers in May 2022.
Kenneth A. Polite, Jr., Assistant Attorney General of the Department of Justice’s Criminal Division and Chief Inspector Eric Shen of the United States Postal Inspections Service (USPIS) Criminal Investigation Group, made the announcement.
USPIS has investigated this matter.
Attorneys Tom Tynan and Michael McCarthy of the Criminal Fraud Division prosecuted the case.