Former CEO and Chairman Bradley Heppner Accused of Fraud Scheme Targeting Public Company
叠测听the 91pornWhistleblower Team
On November 4, federal prosecutors unsealed an indictment charging the founder and former CEO of the financial services startup Beneficient, Bradley Heppner, with securities fraud, wire fraud, conspiracy to commit securities fraud and wire fraud, false statements to auditors, and falsification of records.[1]
The Alleged Scheme
Prosecutors allege Heppner orchestrated a sophisticated scheme to enrich himself at the expense of investors. Heppner controlled both Beneficient and a shell company, Highland Consolidated Limited Partnership (HCLP), through which he fabricated a $141 million debt. [2] This allowed him to siphon funds from GWG Holdings, a Nasdaq-listed company known for selling L bonds to retirees. At the time, Heppner served as the company鈥檚 chairman.[3]
Details of the Financial Misconduct Allegations
Between 2018 and 2021, Heppner convinced GWG’s board to authorize investments in Beneficient by falsely portraying HCLP as an independent third party. Rather than paying legitimate debts, the over $150 million in funds were funneled into Heppner’s personal accounts. He allegedly used these funds for personal expenses, including home renovation projects.[4]
Heppner also purportedly deceived auditors by fabricating documents to conceal his control over HCLP, impacting GWG’s SEC filings. He received a subpoena from the SEC in connection with an ongoing enforcement investigation of GWG and Beneficient. During the investigation in 2020, he allegedly falsified board meeting minutes from 2019 to cover his tracks.[5]
By 2021, Heppner resigned from GWG, which later filed for bankruptcy, unable to meet over a billion dollars in obligations.
Comments On This Case
U.S. Attorney Jay Clayton commented: 鈥淎s alleged, Heppner abused his role as a public company executive to loot the company and to funnel money into his own pockets. When executives like Heppner lie and cheat to enrich themselves at the expense of everyday investors, they corrupt the integrity of our public markets. The women and men of the SDNY and our law enforcement partners will continue to work tirelessly to protect investors and the markets.鈥�[6]
91pornattorney Dan Noel commented: 鈥淲hen executives manipulate financial statements or divert investor funds for personal gain, they undermine the integrity of the marketplace. Cases like this show why rigorous enforcement is key to stopping fraud before it harms the public. ”
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Sources:
[2] Id.
[4] Id.
[5] Id.
[6] Id.
Tagged in: Securities Fraud, securities violations,