The contents hereof do not constitute an offer or solicitation to buy or sell any securities, financial instruments, products or services. Beneficient announced in January it had facilitated $15 million for rural development in Kansas by setting aside 2.5% of TEFFI transactions, as required by law. Executive Committee, Audit Committee ChairEnterprise Risk Committee, Audit Committee Another $2.7 million was delivered Thursday to the Department of Commerce. The products and services described on this website may not be suitable for all users and you should consult with your legal, tax or other advisors prior to taking any action relating to the subject matter contained on this website. Carmichael also recalled a lesson instilled by his father: Dont put yourself in the position to be the guinea pig., These ideas go south more often than they come to fruition, Carmichael said. A schematic he showed council members depicted a 40,000-square foot building for city hall, police and fire services on one end of a downtown square and a non-denominational chapel anchoring the other end. By then, the Kansas Legislature had already passed the TEFFI legislation. A three-month Kansas Reflector investigation explored Heppners business and the prospects of rural development through interviews with Beneficient leaders, financial experts, Hesston residents, Texas authorities, attorneys and Kansas officials; a review of legislative hearings and records; financial documents obtained through open records requests and public SEC filings; and documents from lawsuits filed in federal courts and the chancery of Delaware. Derek Fletcher, president and chief financial officer for Beneficient, said in an email that the company hired an accountant in March and will have the books in order by July. Additionally, Herndon had discovered Beneficients parent company, GWG Holdings, had an F rating from Charles Schwab. 1. They demanded the bank commissioner allow Beneficient and the TEFFI program to proceed as intended.. And that is when the lightbulb went off. Meanwhile, he noted that they had a deadline since the school district was working on a bond issue and a new school. For informational and educational purposes only. Rep. Rui Xu, a Democrat from Westwood, said this was a rare chance for Kansas to be the first state in the country to do something. Posted in: Bonds and FINRA Arbitration July 5, 2022 11:12 am The way Heppner tells the story, a phone call from his octogenarian mother convinced him Kansas was the best place to launch his idea for a trust company that deals exclusively with alternative assets. For the former company, he carries out executive and risk management duties as well as those related to regulatory compliance and strategic development. They could instead count on the TEFFI to look out for their financial interests. Ive sold my companies to the biggest banks in the world. It wasnt clear, Herndon said, whether he would have the authority to close the business, as he does with other financial institutions. The program poses a reputational risk to Kansas, the bank commissioner says. System HESSTONBrad Heppner, chief executive officer and chairman of the board of directors for The Beneficient Company, unveiled his vision for Hesston during a called meeting Wednesday morning of Hesston City Council. And obviously, even though the lawsuits have not made their way through the court, there are some allegations in those lawsuits that are concerning, and we will pay particular attention as it processes through the court system.. Holland, in an interview, pointed to a Dec. 7 meeting of the oversight committee, where Republican legislators insisted Herndon grant a full charter to Beneficient without further delay. He said the city would need to get rid of portions of Old Highway 81 to create more density and a feeling of community. Heppner described it as a chicken-and-egg scenario: Beneficient couldnt close the books until TEFFI transactions were processed, and those transactions were contingent upon having a charter from the bank commissioner. Forbes puts the bankers worth at $2.9 billion, and One-fifth of that figure goes to the Department of Commerce while the rest goes to a charity of the TEFFIs choosing. GWG Inc executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, Stocks and cryptocurrency portfolio tracker. A separate lawsuit filed March 4 by PCA in the chancery of Delaware accuses Heppner of failing to deliver all of the cash he promised. THE BRADLEY K. HEPPNER FAMILY TRUST 325 Saint Paul St., Suite 4850 Dallas, TX 75201 Attorney/Law Firm Details Defendant Attorney SCOTT, In addition, he makes $143,132 as Chairman of the Board at GWG Inc. Mr. Heppner GWGH stock SEC Form 4 insiders trading David Toland, who also serves as commerce secretary, told senators he had the same reaction to Heppners pitch as they did: Sounds amazing, but what is the catch?, After meeting with Beneficent and others to try to identify a liability to the state, Toland said, we could not find one.. Mr. Heppner founded Heritage Highland in 1996 as a family office to organize, acquire and own as controlling or sole shareholder these operating companies. Instead, Mr. Heppner and other business entities he is involved with collected at least $174 million in cash, loan repayments and other benefits as a result of the takeover of GWG that he engineered before the company collapsed in April, leaving thousands of individual investors owed $1.3 billion, a Wall Street Journal review found. Heppner, in his January interview, said the assets in the trusts could be monetized over four to seven years. Lawmakers and Gov. In 2003, Mr. Heppner organized Highland Consolidated Business Holdings, L.P. which is the predecessor-in-interest to Beneficient and reorganized into Beneficient in September 2017. WebBrad Heppner, The Beneficient Company, and Kansas TEFFI Act Understanding that the alternative assets industry is at an inflection point, Brad Heppner and the Beneficient GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX. Kansas officials were thrilled by Heppners proposal to boost rural development by setting aside a slice of the action from wealthy out-of-state investors through a mechanism that posed no financial risk to the state. In a special city council meeting on Feb. 23, Heppner dared the community of about 3,800 to dream big. Our attorneys are admitted to practice in New York and Florida and represent investors nationwide. The most recent stock trade was executed by Bruce William Schnitzer on 18 June 2020, trading 8,169 units of GWGH stock currently worth $23,608. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful. Sign In. He agreed to find a buyer who would pay $550 million in cash for PCA assets valued at $500 million. Laura Kelly continue to support the enterprise despite the Kansas bank commissioners concerns, lawsuits that accuse Heppner of fraud, the absence of audited financial statements from Beneficient, and a Securities and Exchange Commission investigation. Emry said Feb. 28 was the deadline for getting a grant proposal to the state for ARPA funds. These are towns with populations under 5,000 and without a principal industry. It is kind of like and I hate to use the term because institutions would not like it its like a pawn shop. Contact us today at (800) 975-4345 for a no-cost consultation. Ive spent 50 years working for financial institutions, and when I read the bill, I did not understand it, Kelly said as he urged others to vote in favor of the bill. Beneficient responded to questions about the funding by providing a bank statement showing a $748,339.44 transfer was made to the foundation on April 8. It was a beyond fashionable crowd. Hesston Village Park, the name Heppner gave to the vision, would include a plot of green space that is 20 percent larger than Heritage Park. The new enterprise intersected with Paul Capital Advisors, or PCA, after. Executive Committee Chair There were questions about corporate structure and whether Beneficient could provide an audited financial statement. A federal class action lawsuit claims Heppner secured cash for Beneficient by defrauding investors. He would only deal with individuals who have a net worth of at least $5 million. Heppners extensive resume in the finance world includes jobs at Goldman Sachs, the John D. and Catherine T. MacArthur Foundation, and Bain and Company. Heppner, in the January interview with Kansas Reflector, said his goal in launching the TEFFI trade was to carve this out for Kansas and do it right., Dont do it with snake oil salesmen, Heppner said. Wealth Strategies Director, Global Head of Originations & Distribution. 2. Of the total value of an investment, 20 percent must be contributed to the Kansas Department of Commerce. His concept called for an indoor flea market, an auditorium, an indoor basketball court, a museum and a railroad depot. , where Republican legislators insisted Herndon grant a full charter to Beneficient without further delay. to let him launch the nations first technology-enabled fiduciary financial institution known as a TEFFI which is operated by his Dallas-based company, Beneficient. Heppner bought Crossroads Group, which managed private equity and venture capital investments, in the mid-1990s, according to a. about his niche of providing fast cash for the ultra-wealthy. Heppner founded Beneficient Management Group in 2003 and Beneficient Holdings in 2010. Finally, one place to get all the court documents we need. In the final days of the session, the House and Senate gutted an unrelated bill, replaced it with the contents of the TEFFI bill, and forced a vote amid a torrent of other last-minute legislation that was up for consideration. The Heppners are committed to HEROs mission in multiple ways. Brad Heppner is founder and CEO of The Beneficient Company Group (Ben), the Dallas-based financial services firm whose clients are the benefactors of the HERO initiatives. HESSTON Brad Heppners vision to transform his hometowns main street into a thriving commercial hub is so breathtaking, local and state officials would Individuals and institutions who need cash for their assets could avoid having to worry about paying accountants, lawyers, tax preparers and investment consultants to orchestrate the transaction, Heppner said. A federal lawsuit filed on Dec. 23, 2021, against GWG Holdings describes a scheme in which the company gambled on when people would die. Much of the discussion among legislators that followed Herndons testimony focused on whose constituents would be eligible to receive a portion of the charitable contributions from Heppners enterprise and other companies that would surely follow. Save all of your favorite content in one curated collection. Dallas entrepreneur Brad Heppner used money from retail investors to help repay debt he incurred to acquire and develop a nearly 1,500-acre Texas ranch, PAPERCITY 2023 urban publishers, inc. all rights reserved terms & condition // privacy policy // sitemap, Eduardo Natal, Becca Cason Thrash, Ken Fulk, Ceron (Photo by Jonathan Zizzo), Aurelia Heppner, Natalie West (Photo by Jonathan Zizzo), Douglas Friedman, Niven Morgan (Photo by Jonathan Zizzo), Zoe Bonnette, Doniphan Moore (Photo by Jonathan Zizzo), Shelby Wagner, Claire Emanuelson (Photo by Jonathan Zizzo), Cathy Kincaid, Brad Kelly (Photo by Jonathan Zizzo), A shirtless model citizen (David Friedrich) in a hard hat serving up cocktails. I am so thrilled to share with the design community a rare opportunity to get a sneak peek of an incredible property in process from one of the worlds most talented design minds, Bolke shared. a Dec. 7 meeting of the oversight committee. Herndon, the Kansas bank commissioner, has sole regulatory authority, which is limited, over the TEFFI. Hesston, Kansas, native and Dallas businessman Brad Heppner has plans to bring a grocery store, retail and chapel to his home town along with his "technology The $800 million deal coincided with the unexplained resignation of the entire GWG Holdings board, leaving Heppner in charge of both companies. He said the state made a big commitment to TEFFI and that Lt. Gov. HESSTON Brad Heppners vision to transform his hometowns main street into a thriving commercial hub is so breathtaking, local and state officials would rather not question the operations of a uniquely regulated trust company he describes as a pawn shop for rich people. Nominating Committee, Community Reinvestment Chair There are no deposits in a TEFFI, so it is not FDIC insured. . We have a couple of people in the halls for the next two months, and Ill be coming in and out, he said. Among the companies Mr. Heppner founded and sold is Capital Analytics, the third oldest alternative asset administration company in the United States, which is now owned by Mitsubishi Union Financial Group. 4. So what does Kansas get out of this agreement? Fletcher also said the company hasnt conducted any transactions since Dec. 31, but that it has a billion dollars worth of potential deals in our pipeline. The company doesnt finance assets from Russia or Hong Kong, as Owens claimed last year, Fletcher said. Some of those spotted enjoying the whimsical interiors were Christen Wilson, Kelliand Gerald Ford (who live around the corner), April Manson (who made the trip up from her new home in Austin), Brad Kelly, Christie Williams,Rob Dailey, Gonzalo Bueno, and Michael McCray, Brian Bolkes husbandFaisal Halum, and Houstons very own Becca Cason Thrash. The issue here is Beneficient is different from other financial institutions, and so theyre not regulated in the same way, Van Dalsem said. The shirtless construction servers just came naturally. She went on to share that Cindys margaritas were made with Casa Dragones Blanco tequila and served along with Rose Gold Ros in cut crystal glassware. To us, this approach indicates an experimental concept, which raises concerns for any financial regulator where conservative, prudent measures are generally followed, and it most certainly accents the reputational risk to Kansas, Herndon told senators. It appears to me the ball remains in the Legislatures court, Herndon said in the email. Beneficient CEO Brad Heppner is a Hesston native and the drive to set up a TEFFI in Kansas has its roots in the city. The Texas legislature, however, was too focused on politically charged issues like abortion and voting to consider granting him legal clearance for a novel venture, he said. Wedding and Portrait Photography in the Wichita, Kansas area. Beneficient hopes to do $200 million to $250 million in transactions in the first year. Its kind of one of those deals: He who has the money makes the rules, Longbine said. Last updated: 1 January 2023 at 11:00am EST. We need to do whats necessary to win the grant, Heppner said. Brad Heppner is a Senior Partner & Director & Chairman & Committee Chair Executive at The Beneficient Company Group based in Dallas, Texas. having the highest compensation of $4,327,411. The sky is the limit when youre talking about anywhere from $10 to $100 million, or up to a billion dollars over the next 10 years, flowing directly into rural Kansas, Owens said. The court documents we need to get rid of portions of Old Highway 81 create! 2003 and Beneficient Holdings in 2010 Partner & Director & Chairman & Committee Chair There were questions about corporate and..., which is operated by his Dallas-based company, he noted that they had deadline... 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