The SEC has stated that it intends to start public administrative proceedings against a disbarred broker currently serving a lengthy prison term.
According to BrokerCheck, New York resident Bradley Reifler, 63, who became a broker in 1986, was barred from the industry in 2018 for refusing to cooperate with the Financial Industry Regulatory Authority’s “investigation into whether he perpetrated a fraudulent scheme to misappropriate millions of dollars.”
According to an administrative proceeding document published by the SEC last week, in May of last year, Forefront Capital Holdings founder and CEO Reifler pleaded guilty to one count of mail fraud related to his misappropriation of approximately $34 million of the firm’s assets to cover overhead expenses and repay earlier investors to whom he owed money.
As a result of Reifler’s fraud, Forefront was eventually ordered into liquidation, according to the Department of Justice.
In October of last year, the SEC announced that Reifler had been sentenced to five years in jail, three years of supervised release, and the payment of over $20.3 million in restitution. The oversight agency claims he is imprisoned in a “federal correctional institution” in Otisville, New York.
Even so, the SEC stated that it “deems it necessary and appropriate in the public interest” to initiate the public administrative proceedings to ascertain whether the allegations to which Reifler had pleaded guilty are true, to provide the ex-broker with an opportunity to “establish any defenses to such allegations,” and to ascertain “[w]hat, if any, remedial action is appropriate in the public interest.”
The regulatory body has indicated that it will hold a hearing or conference to hear testimony on the matter at a later date. Reifler has been directed to respond to the accusations made against him.
If You Were A Victim of Investment Fraud, Should You Do?
The first thing investors must know there is a limited time to file a claim. A six-year eligibility regulation exists as a statute of limitations and FINRA’s rules for resolving customer disputes. Finally, investors who have knowledge of losses and possible claims but choose to wait before taking action may do so for practical reasons. Taking action when confronted with financial fraud or a Ponzi scheme is crucial.
Haselkorn and Thibaut, InvestmentFraudLawyers.com, is staffed by lawyers who focus on recouping as much money as possible for victims of investment fraud. We have extensive expertise representing investors in claims against brokerage companies and financial advisors. You should speak with a lawyer if you invested with a bad financial advisor and have suffered losses, whether they are current or future. As a public service, our legal team is here to review your investment accounts, offer advice, and field your queries free of charge.
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