Heppner also severed ties between the two companies, leaving GWG Holdings insolvent and investors holding worthless bonds. 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. Enterprise Risk Committee What are the biggest changes to know before filing your 2022 taxes? Mr. Heppner owns over 8,169 units of GWG Inc stock worth over $23,608 and over the last 3 years he sold GWGH stock worth over $0. 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When Heppner sold Crossroads Group to Lehman Brothers in 2003, five years before the banking titan collapsed, the company managed about $2 billion worth of capital. Im not sure thats a correct statement, said Dan Frasier, director of bank and trust supervision for the Texas Department of Banking, in an interview with Kansas Reflector. Each bank gets to choose the rural community where its fees will be sent. We need to do whats necessary to win the grant, Heppner said. The maneuver attracted the attention of the SEC, which issued a flurry of subpoenas beginning in October 2020. Executive Committee Find out more at Privacy Policy or adjust your settings here. Theyre taking much more enormous risk in the decisions theyre making, well above and beyond simply reputational risk. Herndon, the Kansas bank commissioner, has sole regulatory authority, which is limited, over the TEFFI. filed Feb. 18 accuses Heppner of unloading $350 million worth of bonds secured by GWG Holdings and sweeping the cash to Beneficient before disclosing the SEC investigation in November 2021. The house has been dubbed Sunfields Manor and is the new Volk Estates residence of Aurelia and Brad Heppner. Executive Committee, Audit Committee ChairEnterprise Risk Committee, Audit Committee Receive small business resources and advice about entrepreneurial info, home based business, He said the city would need to get rid of portions of Old Highway 81 to create more density and a feeling of community. It was a feast for the eyes.Upon arriving, I quickly bumped into Leontine Linens empress Jane Scott Hodges who whispered in my ear, I am always mystified at what the marvelous Mr. Fulk pulls out of his hat.. (if applicable) for The Wall Street Journal. Why is this public record being published online? He is a lifelong Kansan. 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.. We are delighted that you'd like to resume your subscription. 0 replies on Hesston asking state for $12 million grant, Testing availability has changed at some county locations, Dealing with pain: Physical therapy trying to bridge gap in health care, Tis the season for large groups of raptors, New Jersey tech company buys Newton Kansan. HESSTON Brad Heppners vision to transform his hometowns main street into a thriving commercial hub is so breathtaking, local and state officials would Heppner, in his January interview, said the assets in the trusts could be monetized over four to seven years. _gid, _ga, _gat_UA-138250806-1, doubleclick.net, ads.linkedin.com. The same things I expressed through my testimony. 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. There is no guarantee they will produce cash. When Longbine, the finance committee chairman, explained the TEFFI program in a March 31, 2021, meeting of Senate Republicans, which a Kansas Reflector reporter attended and recorded, his colleagues wanted to know why the pilot program would be based in Hesston. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. Heppner won support for the legislation by promising to bring a grocery store back to Hesston, and that was just the beginning of his plans. Inside Two Buzzy New Openings in Frisco and the Shuttering of a Henderson Avenue Staple, Classic Chicago Subs, Semi-Private Clubs, and the Billionaire-Funded Arrival of Catch in Texas. Mr. Heppner founded Heritage Highland in 1996 as a family office to organize, acquire and own as controlling or sole shareholder these operating companies. Keeping this cookie enabled helps us to improve our website. Sherman Smith is the 2021 and 2022 Kansas Press Associations journalist of the year. Finally, one place to get all the court documents we need. 3PL . Masterson, the Senate president, and Owens, the representative from Hesston, balked at Herndons concerns about damaging the reputation of the bank commission or the state of Kansas. 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. The state hopes to fling the doors open to Beneficient and other institutions to get operating charters in about 12 months, Owens said. Heppner said the state was forecasting that his companys fund would bring in $8 million to $9 million generated every year, which means 80 percent would go to Hesston. Its up to the community to roll up their sleeves and work with our foundation, work with the Beneficent Heartland Foundation, to make it happen, Heppner said in an interview with Kansas Reflector in January. 3481 Paseo Verde Ave, Merced, CA 95348, lived here . When Heppner sold Crossroads Group to Lehman Brothers in 2003, five years before the banking titan collapsed, the company managed about $2 billion worth of capital. Current address 325 North St. Paul Street #4850, Dallas, TX 75201 $2,040: B. Rep. Jim Kelly, a Republican from Independence and chairman of the House Financial Institutions and Rural Development Committee, tried to ease the concerns of lawmakers who were confused by the legislation. He also said his group looked at other communities of similar size and found a couple of good examples. Fulk was retained to turn this new construction into Heppners dream home. Funding resources from the growth of Bens business are directed by Ben and HERO to support students, faculty, and academic programming at HEROs Texas University Members WebBrad K. Heppner Chief Executive Officer James G. Silk Executive Vice President Chief Legal Officer Derek Fletcher President & Chief Fiduciary Officer Wealth Strategies Already a member? Kenneth Kriz, director of the Institute for Illinois Public Finance and a distinguished professor of public administration at the University of Illinois at Springfield, described the takeover as a reverse merger., GWG might have known that they had some upcoming legal issues to deal with, and so one of the ways to inoculate yourself is to have your board go away, and you basically get swallowed up, Kriz said. And again, this is cutting edge. What this means for you: When you establish a relationship or carry out a transaction with us, we will ask for your name, address, date of birth and other information that will allow us to identify you (or similar identifying information for entities). He said he didnt want the community to think of this as a checkbook. 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. . . The Beneficient Company Group or Ben, for short is the private company, founded by Brad Heppner, that encourages its clients to be benefactors of HERO initiatives. These cookies are necessary for the website to function and cannot be switched off in our systems. The most active insiders traders include Thomas O Hicks, Dennis P Lockhart, and Shawn R Gensch. Hesston native and Dallas businessman Brad Heppner has plans to bring a grocery store, retail and chapel to the towns main street, where he has opened an office for his technology-enabled fiduciary financial institution. Kansas officials cleared the way for TEFFI operations in exchange for the promise of rural development. a Dec. 7 meeting of the oversight committee. And Im incredibly comfortable staking my reputation on the line in taking that risk.. Kansas Reflector maintains editorial independence. GWG Holdings filed for bankruptcy on Wednesday. Newcomer Kastra ElionVodka, owned by Dallas own. 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. They demanded the bank commissioner allow Beneficient and the TEFFI program to proceed as intended.. The new enterprise intersected with Paul Capital Advisors, or PCA, after Fortune Magazine criticized PCA for charging investors millions per year in management fees despite eliminating staff and closing offices while winding down its portfolio. This website uses cookies to provide you with the best browsing experience including downloadable documents. You may cancel your subscription at anytime by calling In that meeting, Herndon objected to authorizing transactions before reviewing audited financial records from Beneficient. 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 bill received unanimous support in the Kansas Senate and bipartisan support of 82% in the House. 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. These assets are typically holdings in private equity or venture capital, but also could be investments in private real estate, natural resources or, theoretically, expensive art, antiques and wine. , 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, Cindys margaritas were made with Casa Dragones Blanco tequila and served along with Rose Gold Ros in cut crystal glassware. on Feb. 23, Heppner dared the community of about 3,800 to dream big. A small part of each TEFFI transaction is set aside for rural development, and written off as a tax credit. Heppner frequently mentions how the states lax regulations served as a beacon for credit card companies that now base their operations in Sioux Falls. System , , . Frasier said the ability to provide audited financial statements is certainly one of the things that we look at and consider as part of the chartering process.. This public service is free to readers and other news outlets. Heppner acknowledged that the law could be changed. (Photo by Jonathan Zizzo). If the designer of said house is Ken Fulk, then emblazon those white hard hats with his name and voila youve made the guests happy (or at least the girls and gay boys in attendance). One-fifth of that figure goes to the Department of Commerce while the rest goes to a charity of the TEFFIs choosing. As the Chairman of the Board of GWG Inc, the total compensation of Bradley Heppner at GWG Inc is $143,132. The issue here is Beneficient is different from other financial institutions, and so theyre not regulated in the same way, Van Dalsem said. The Fincher Building at the Edwin L. Cox School of Business at Southern Methodist University is about to get a big upgrade, thanks to a $10 million commitment The TEFFI program was created with minimal brick-and-mortar and employee requirements. 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. Instead of shepherding 2.5% of transactions into a research fund for Texas universities, he would move the charitable contributions to South Dakota parks. These TEFFIs can finance alternative assets held in Kansas trusts and do it quickly with fintech. Anybody that has done anything great in the history of this world has taken risk in most cases, much more than just reputational risk in moving first, in being ahead of the competition, Owens said. Our attorneys are admitted to practice in New York and Florida and represent investors nationwide. The estimated Net Worth of Brad K Heppner is at least $167 Thousand dollars as of 18 June 2020. Currently, Mr. Heppner serves as chief executive officer and chairman for all Heritage Highland companies, positions he has held since its organization in 1996. In a separate email to Sen. Tom Holland, a Democrat from Baldwin City, who has called for an end to the TEFFI program. Brad Heppner, CEO of Beneficient Company Group, is building a new financial services firm in Dallas that serves the nation's growing number of millionaires. Emry said the estimates had gone even higher. Profitability is not a factor in evaluating the safety and soundness of a TEFFI as long as it has enough money to conduct transactions. Beneficient CEO Brad Heppner is a Hesston native and the drive to set up a TEFFI in Kansas has its roots in the city. . Herndon emphasized in an interview that he raised red flags about Beneficient from the start including the SEC investigation and absence of audited financial records. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. And folks, this is not Kansans money. Its like the Wild West. Ive had many companies bought and sold, Heppner said in a Jan. 26 interview. Contact Editor Sherman Smith for questions: info@kansasreflector.com. You may change your billing preferences at any time in the Customer Center or call Forbes puts the bankers worth at $2.9 billion, and Bradley Heppner is 54, he's been the Chairman of the Board of GWG Inc since 2019. on April 10, 2022, to members of a joint legislative committee established to provide oversight of the TEFFI program. He said part of the grant application was engineering fees, and he asked council to approve spending $25,000 on the fees. When we as the government get out of the way, its a win-win.. One-fifth of that figure goes to the Department of Commerce while the rest goes to a charity of the TEFFIs choosing. Legislators who touted the rural development aspect of the TEFFI never mentioned that Beneficients charitable donations could be designated for Heppners own nonprofit, and they never explained the way transactions would actually make their way to the foundation or the Department of Commerce. 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.. from his mothers house near downtown Hesston. Get the latest headlines delivered to your inbox every weekday. That buyer would be GWG Holdings, a Minneapolis-based company that bought life insurance policies from senior citizens. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. The Legislature should have known better when he told them on Dec. 7 that he still had not received audited financial statements, Holland said. Cookies used The small percentage they have to surrender for rural development would represent a cost savings. Last updated: 1 January 2023 at 11:00am EST. With Hesston as the designated beneficiary of TEFFI funds, Councilman Larry Fuqua asked how Hesston could stop the legislature from taking away all the money that it is projected to receive. a majority stake in Beneficient. Before establishing these two enterprises in 2005, Brad K. Heppner acted as founder and chairman of Security Assurance Advisors. Contact us today at (800) 975-4345 for a no-cost consultation. It was a beyond fashionable crowd. Theres been an awful lot of talk about a grocery store, OK? Credit rating company Equifax provided incorrect credit scores by up to 25 points for millions of Americans looking for auto loans, mortgages and credit cards between March and April. Beneficient initially placed $2.7 million in cash into a trust for the Department of Commerce, which couldnt access the funds, then transferred the money to the agency after questions were raised for this story. 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. 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. Beneficient Company Group CEO Brad Heppner approached Kansas to designate the state as a haven for trust banks in the alternative assets industry. GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX. 4 Dallas-based Beneficient going public via SPAC in deal valuing it at $3.5 billion The company works in the fast-growing $12 trillion alternative assets market. and a B.A. Public Records Policy. Cant you get me a little bit of that money to reopen the grocery store here in town? Heppner said. I still have unanswered questions, Herndon said. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. 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. Chief Legal Officer, President & Chief Fiduciary Officer DEIJ Policy | Ethics Policy | Privacy Policy. Beneficient declined to answer questions about the litigation. Kansas Reflector is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. In 2003, Mr. Heppner merged The Crossroads Group, a multi-billion dollar alternative asset manager, with Lehman Brothers, now Neuberger Berman. He said the rest could go to a foundation, like Beneficent Heartland Foundation, which will benefit Hesston. Follow Kansas Reflector on Facebook and Twitter. B. Following that role, he joined the John D. and Catherine T. MacArthur Foundation, where he administered more than $3 billion in investments. Heppner in the January interview with Kansas Reflector said the Texas bank commissioner learned about the TEFFI legislation on the day the Kansas governor signed the bill. Beyond the magazine. 2011-2022 The Beneficient Company Group, L.P. Securities of The Beneficient Company Group, L.P. and/or any of its affiliates, subsidiaries and successors (collectively, Ben) are offered through Ben Securities Company, L.P. an affiliated entity. A financial technology platform creates a more rapid process with simpler forms. 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. The legislation allows wealthy investors to create a tax-exempt trust. Most cases are handled on a contingent fee basis, meaning that you wont owe us until we recover your money for you. JORDAN ZITOUN, et al vs. SAMUEL ELCHAMI, et al, VERSAILLES DALLAS, INC. vs. JORDAN ZITOUN, et al. Beneficient hopes to do $200 million to $250 million in transactions in the first year. He said Heppner talked about helping with the expense. The letter says the company is working to finalize agreements and establish accounts before transferring cash and assets marked for economic growth to the Department of Commerce and Beneficient Heartland Foundation. Those would include Mayor David Kauffman, City Administrator Gary Emry, Superintendent Ben Proctor, the president of the Hesston Chamber of Commerce, family members of a business and industry, the president of Bluestem Communities, the president of Hesston College, a member of the Hesston Ministerial Alliance and three members from his company. PCA only received about $150 million in cash after years of wrangling. I get that.. He proposed that 13 members serve on the board of the foundation. Compensation Committee 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. Mr. Heppner has acquired or founded ten operating companies principally in the financial services, investment and insurance sectors, each with a common business purpose of providing highly specialized solutions for alternative asset owners. So what does Kansas get out of this agreement?
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