The Department of Justice says that the founder of the Dallas-based finance group Beneficient has been charged in federal court with multiple counts of fraud.
Documents from the Justice Department reveal that Bradley Heppner, who was serving as chairman of the now-bankrupt insurance services company GWG Holdings, is charged with wire fraud, securities fraud, conspiracy to commit securities fraud, and falsification of records.
Christopher G. Raia, FBI Assistant Director in Charge, says that Heppner allegedly misappropriated over $150 million while serving as chairman of GWG.
“In furtherance of this scheme, Heppner allegedly falsified documents, made misleading statements to investors and auditors, and obstructed an investigation by regulatory authorities,” said Raia in a press release from the Justice Department. “GWG’s subsequent bankruptcy resulted in over $1 billion in losses to retail investors. The FBI will continue to hold accountable any individual who defrauds investors for their own gain.”
Authorities say Heppner was taken into custody in Dallas on Tuesday.
According to the release, Heppner orchestrated a $141 million liability for Beneficient to a shell entity, a setup that allowed him to obtain personal payouts.
GWG Holdings paid Beneficient over $300 million to cover its debts, of which Heppner allegedly pocketed half.
“As alleged, Heppner abused his role as a public company executive to loot the company and to funnel money into his own pockets,” said U.S. Attorney Jay Clayton. “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 [Southern District of New York] and our law enforcement partners will continue to work tirelessly to protect investors and the markets.”
