The U.S. Securities and Exchange Commission has opened an administrative proceeding against former Dutchess County wealth adviser Bradley C. Reifler to determine whether he defrauded a North Carolina insurance company.
Reifler, 63, pled guilty to mail fraud last year and was sentenced in November to five years in prison and ordered to pay back $20.3 million to the insurance company. He is incarcerated at the Federal Correctional Institution at Otisville, Orange County.
The SEC states in the Feb. 15 order that it is “necessary and appropriate in the public interest” to hold an administrative proceeding to determine if the North Carolina allegations are true and “what, if any, remedial action is appropriate.”
Reifler was founder and CEO of Forefront Capital Holdings.
He reportedly lived a lavish lifestyle at Sky Blue Farm, a 144-acre horse farm in Millbrook, Dutchess County, where he poured $8 million into building an ice hockey rink, tennis courts, riding ring, shooting range, motocross track and swimming pool.
The property was listed for sale at $14.5 million in 2016 and sold for $3.9 million in 2021, according to online real estate sites.
In 2017 Reifler filed for Chapter 7 bankruptcy protection, declaring $5 million in assets and $43 million in liabilities. The IRS claimed he owed nearly $23 million in taxes.
In the North Carolina case, Reifler was charged with defrauding North Carolina Mutual Life Insurance Co., the oldest black-owned insurance company in the United States.
It was already struggling financially when a deal was struck with Reifler in 2015 to entrust $34 million in insurance premiums with Forefront.
“Rather than investing the assets in secure investment vehicles as required,” the SEC states, “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.”
Last year the insurance company was placed in receivership to be liquidated.
The SEC ordered a public hearing to be held for taking evidence and it directed Reifler to answer allegations based on the North Carolina case. If he fails to answer or appear at a hearing, he may be deemed in default and the SEC will issue a final order.
