Former CEO Bradley Heppner charged with $150 million fraud targeting public company
On November 4, U.S. Attorney Jay Clayton and FBI Assistant Director Christopher G. Raia announced that Bradley Heppner, 59, founder of Beneficient and former chairman of GWG Holdings, was indicted for securities fraud, wire fraud, conspiracy, false statements to auditors, and falsifying records. Heppner was arrested in Dallas and will appear in federal court in Texas before the case proceeds in Manhattan before Judge Jed S. Rakoff.
According to the indictment, Heppner used his control over GWG Holdings—a publicly traded financial services firm—to funnel more than $150 million into his own accounts through a shell entity he secretly controlled, Highland Consolidated Limited Partnership (HCLP). Prosecutors say Heppner fabricated debts, misled GWG’s board, and diverted investor funds meant for legitimate business purposes to finance luxury renovations on his Dallas mansion and East Texas ranch.
“As alleged, Heppner abused his position to enrich himself at the expense of ordinary investors,” said U.S. Attorney Jay Clayton. “We will continue to pursue corporate executives who lie, cheat, and manipulate our public markets.”
The FBI’s Raia added: “Heppner’s alleged misconduct contributed to GWG’s bankruptcy, costing retail investors over $1 billion. The FBI will hold accountable anyone who defrauds investors for personal gain.”
The indictment further claims Heppner falsified audit documents, created backdated records, and even doctored board meeting minutes to mislead auditors and the SEC during an investigation into GWG and Beneficient. GWG ultimately filed for bankruptcy in 2022, unable to meet obligations to tens of thousands of bondholders.
If convicted, Heppner faces up to 20 years in prison on each major fraud count, and five years for conspiracy.
The case is being prosecuted by the SDNY’s Securities and Commodities Fraud Task Force, with Assistant U.S. Attorneys Thomas Burnett, Daniel Nessim, and Alexandra Rothman leading the prosecution. The U.S. Attorney’s Office thanked the FBI and the SEC for their assistance.
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(Source: U.S. Attorney’s Office, Southern District of New York)
(Cover photo of Brad Heppner, Image credit: Irving Police Department)
Posted by Richard Webster, Ace News Today
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