Bradley Heppner, the founder of Beneficient, has been charged with a brazen scheme to defraud GWG Holdings, Inc., a publicly traded company where he served as chairman.
According to the indictment, Heppner created a $141 million debt that Beneficient purportedly owed to Highland Consolidated Limited Partnership (HCLP), a shell company controlled by Heppner. He then used his influence over GWG to funnel millions of dollars into his own pockets.
The indictment alleges that Heppner made false and misleading statements to a special committee of GWG’s board to induce them to authorize investments in Beneficient. He also lied to auditors about the control of HCLP, and used the funds he received from GWG for personal expenses, including to fund his lifestyle and renovate his Dallas mansion.
The scheme resulted in over $1 billion in losses to retail investors, who were left holding worthless bonds after GWG filed for bankruptcy.
Heppner was arrested in Dallas, Texas, on [June 1, 2023], and is expected to be presented in the Northern District of Texas.
As alleged, Heppner abused his role as a public company executive to loot the company and funnel money into his own pockets.
The case has been assigned to U.S. District Judge Jed S. Rakoff.
Heppner is charged with securities fraud, wire fraud, conspiracy to commit securities fraud and wire fraud, false statements to auditors, and falsification of records.
The FBI will continue to hold accountable any individual who defrauds investors for their own gain, said FBI Assistant Director in Charge Christopher G. Raia.
As a publicly held company, GWG was required to disclose its financial statements and transactions to the public. However, Heppner allegedly lied to the company’s auditors and made false statements to investors and regulatory authorities.
The indictment alleges that Heppner received more than $150 million of GWG funds through his HCLP entity, and used the funds for personal expenses.
The case is a stark reminder of the importance of corporate governance and the need for executives to act with integrity and transparency.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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