Texas records show Heppner submitted and withdrew a series of applications for a trust company between Sept. 25, 2018, and Nov. 25, 2020. Emry added that he was sure the state would say that Hesston needed a resolution promising to meet its matching share every year so that the state was not left holding the bag. Kansas bank commissioner David Herndon appeared before the Senate Financial Institutions and Insurance Committee on March 30, 2021, a day after Heppner testified, to outline unresolved concerns.. He has written award-winning news stories about the instability of the Kansas foster care system, misconduct by government officials, sexual abuse, technology, education, and the Legislature. Ben does not provide investment advisory services or tax, accounting or legal advice. Heppner said he was looking for community leaders to help create the vision. GWG Holdings, Inc. is an innovative financial services firm based in Dallas, Texas that is a leader in providing investments that are non-correlated to the traded markets, and unique liquidity solutions and services for the owners of illiquid investments. Beneficient, which has 140 employees in Dallas and seven in Kansas, has the knowledge to help get the program off the ground, Owens said. The standouts for me were Zoe Bonnette who was wearing an aubergine Safiyaa jumpsuit, (though her main accessories were her dashing dates Doniphan Moore and Tanner Moussa);Annika Cail had a bag I was drooling over truly a piece of sculpture by Cult Gaia; and Ceron in the most glamorous leopard trench coat. I get that.. 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. I really want to see it happen quicker rather than later, because my mothers in her early 80s, and Id like to see this get done so she can enjoy shopping in that store for a decade.. You may cancel your subscription at anytime by calling It will also help market the program to bring in other banks. on Dec. 23, 2021, against GWG Holdings describes a scheme in which the company gambled on when people would die. Ive sold my companies to the biggest banks in the world. Follow Kansas Reflector on Facebook and Twitter. Kansas is hoping it can copy what South Dakota did for credit cards when that state eliminated caps on interest rates and attracted the credit operations of major banks and retailers. 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. Last updated: 1 January 2023 at 11:00am EST. 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. 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. That comes with a certain degree of uncertainty. Heppner bought Crossroads Group, which managed private equity and venture capital investments, in the mid-1990s, according to a 2018 story in the Dallas Morning News about his niche of providing fast cash for the ultra-wealthy. He has successfully completed realizations from seven of the ten Heritage Highland companies through mergers and transactions with Fortune 50 companies or institutionally backed management teams. 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. This is money coming from California, Florida, Hong Kong, Russia, anywhere.. A pro for throwing a party in a Dallas house that is mid-construction: shirtless men in hard hats. 2013-12-02. 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. The contents hereof do not constitute an offer or solicitation to buy or sell any securities, financial instruments, products or services. When finished, this home will for sure be a reference point for craftsmanship, exuberance, and most of all a high dose of wit.. Compensation Committee Chair Its kind of one of those deals: He who has the money makes the rules, Longbine said. Heppner, in his January interview, said the assets in the trusts could be monetized over four to seven years. PCA only received about $150 million in cash after years of wrangling. Heppner also has plans for an area north of downtown around the railroad tracks. Heppner, a native of Hesston, Kan., said he got the idea to divert funds to rural towns from his mother. And so while we dont see any now, theres going to be setbacks, theres going to be, you know, turns and twists and everything as you go along.. Few in the Kansas Legislature, or even the investment world, understood Heppners business model when. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. Become a business insider. THE BRADLEY K. HEPPNER FAMILY TRUST 325 Saint Paul St., Suite 4850 Dallas, TX 75201 Attorney/Law Firm Details Defendant Attorney SCOTT, 2018-10-04, Dallas County District Courts | Contract | In a special city council meeting on Feb. 23, Heppner dared the community of about 3,800 to dream big. And folks, this is not Kansans money. 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. . His mother told him that community reinvestment could allow owners to reopen the grocery store and other businesses. WebBrad K. Heppner Chief Executive Officer James G. Silk Executive Vice President Chief Legal Officer Derek Fletcher President & Chief Fiduciary Officer Wealth Strategies 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. And I believe its going to happen, and I believe its going to happen within the next 18 to 24 months, maybe sooner. Important Information About Procedures for Establishing a Relationship with Ben. The state signed a new law this year that allows for the chartering and creation of trust banks known as Technology Enabled Fiduciary Financial Institutions. By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, A TEFFI is different from other financial institutions because it only deals in alternative assets, the kind that hold value but dont produce a regular cash flow, and the legislation requires the bank commissioner to grant a company an operating charter without undergoing the usual examination to determine whether it is safe to do business with the company. He agreed to find a buyer who would pay $550 million in cash for PCA assets valued at $500 million. 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 Hepner later explained that he was talking 10 or more years in the future. These materials do not constitute an offer to sell or the solicitation of an offer to buy securities. One-fifth of that figure goes to the Department of Commerce while the rest goes to a charity of the TEFFIs choosing. At the latter, Brad K. Heppner helps lead the institution in its indemnity, fidelity, and investment fraud policy underwriting mission. How it Works: 1 Identify a need for liquidity for your alternative asset. , Heppner, 56, said he spent six years developing the framework for his business by negotiating with Texas regulators. Rep. Stephen Owens, a Republican from Hesston, touted the new program, Senate President Ty Masterson, a Republican from Andover, and Sen. Jeff Longbine, a Republican from Emporia who serves as chairman of the Senate finance committee, insisted in an April 7 letter to the bank commissioner that, are inconsequential. 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. There is no guarantee they will produce cash. The magazine placed PCA in its Fee Hog Hall of Shame. The company also provided financial statements that show the TEFFI has designated a sliver of mostly illiquid assets for rural development in 117 separate trusts managed by John Stahl. Website Design by, The Dallas Institute of Humanities and Culture, Women's Auxiliary of The Salvation Army Dallas Fashion Show And Luncheon. 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. There is no guarantee they will produce cash. The Legislature should have known better when he told them on Dec. 7 that he still had not received audited financial statements, Holland said. He said his company had been footing the bill for the past week for the architecture firm the school picked. Herndon, the Kansas bank commissioner, has sole regulatory authority, which is limited, over the TEFFI. , COVID taught us you dont need to go to Wall Street to work, as long as you have good broadband, he said. ERP 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. (Photo by Jonathan Zizzo), Billy Fong, Brooke Dowdy, Lisa Collins Shaddock (Photo by Jonathan Zizzo), Brian Bolke, Becca Cason Thrash (Photo by Jonathan Zizzo), Lloyd Princeton, Gonzalo Bueno, Michael McCray (Photo by Jonathan Zizzo), Abbie Currie, Jane Scott Hodges (Photo by Jonathan Zizzo), Mike & Bryan Yates (Photo by Jonathan Zizzo), Nancy Rogers, Brian Bolke, Tina Chen Craig (Photo by Jonathan Zizzo), Doniphan Moore, Tanner Moussa (Photo by Jonathan Zizzo), Brian Bolke, Faisal Halum (Photo by Jonathan Zizzo), Stacy & Mack Hicks (Photo by Jonathan Zizzo), Josh & Tracy Madans, Rob Dailey (Photo by Jonathan Zizzo), The entertainment at Sunrise Manor. a majority stake in Beneficient. 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. Ben's Board of Directors includes industry leaders with direct market experience in the key aspects of Ben's business. As of July 1, Beneficient was granted an inoperable charter in the state. . 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.. Please enable Strictly Necessary Cookies first so that we can save your preferences. 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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. His concept called for an indoor flea market, an auditorium, an indoor basketball court, a museum and a railroad depot. Ive spent the last two months trying to find a reason to hate this bill, but really it represents very little financial risk to the state of Kansas, Xu said. Dallas-based entrepreneur Brad Heppner became chairman of life-settlement business GWG Holdings Inc. promising to reinvigorate the company by pivoting into new alternative asset classes. 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. The small percentage they have to surrender for rural development would represent a cost savings. 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, Brad Heppner is a Senior Partner & Director & Chairman & Committee Chair Executive at The Beneficient Company Group based in Dallas, Texas. Quarter Acre Quietly Debuts in Lower Greenville, a Flashy Miami Restaurant Comes to Deep Ellum, and a Beloved TJs Seafood Owner Jon Alexis Heads to Snider Plaza, Nandos Comes to Addison, and More Mister O1 in DFW, Two Texas Favorites Expand in Dallas, and the 12 Days of Thompson Begins. JORDAN ZITOUN, et al vs. SAMUEL ELCHAMI, et al, VERSAILLES DALLAS, INC. vs. JORDAN ZITOUN, et al. . 3PL . As a reporter, I rely on UniCourt to keep on top of the latest filings and developments on cases involving celebrities and corporations. Heppner said he had no intent to build a Taj Mahal. The rest of the funding may not be available for years. And again, this is cutting edge. Heppner said a 40,000-square foot city complex was a large format. The oldest executive at GWG Holdings Inc is DavidDe Weese, 77, who is the Director. They demanded the bank commissioner allow Beneficient and the TEFFI program to proceed as intended.. On average, GWG Inc executives and independent directors trade stock every 150 days with the average trade being worth of $127,781. If you do not agree with these terms, then do not use our website and/or services. Brad K Heppner Dallas, age 56, male. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. 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. Brad received a B. House Status: Adjourned until Monday, January 09, 2023 at 02:00 p.m. Senate Status: Adjourned until Monday, and Brad Heppner answered two additional questions from Senator Pittman. Beneficient Company Group CEO Brad Heppner approached Kansas to designate the state as a haven for trust banks in the alternative assets industry. Hesston city manager Gary Emry said he doesnt even know what an alternative asset is, and that he isnt interested in reading about the lawsuits involving Heppner and his companies. 3. , . Cookies used (SECOM) The state hopes to fling the doors open to Beneficient and other institutions to get operating charters in about 12 months, Owens said. 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. Forbes puts the bankers worth at $2.9 billion, and Compensation Committee requires a TEFFI to have at least three employees and 2,000 square feet of office space in Hesston or any town with fewer than 5,000 people in one of 78 Rural Opportunity Zone counties. Ben underwrites and presents simplified terms and product documents. 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. Hesston, which has a population of less than 4,000, lost its last grocery store a year ago. In that meeting, Herndon objected to authorizing transactions before reviewing audited financial records from Beneficient. 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. Emry said in a recent conversation with Heppner the two talked about the citys match then the level of the project, which engineers estimated to be $7 million to $10 million. Guests were a veritable whos who of our local social set. A class action federal lawsuit 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. In a separate email to Sen. Tom Holland, a Democrat from Baldwin City who has called for an end to the TEFFI program, Herndon said the legislation doesnt allow him to suspend operations. Open a newChase Private ClientChecking account and get a $2000 bonus! 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. WebDallas-based investor and entrepreneur Brad K. Heppner currently serves as founder, chairman, and chief executive officer of Beneficent Trust Company Holdings, a trust He also said there was some discussion of skin in the game, and if that was the expectation for the city, he would like council members to know going forward. Ben's management team includes industry veterans with broad fiduciary, investing, and operating experience in both the credit and alternative asset markets. Heppners company wouldnt have to operate under typical rules for conflicts of interest or use standard accounting practices. HESSTON Brad Heppners vision to transform his hometowns main street into a thriving commercial hub is so breathtaking, local and state officials would WebDallasaverage build age 57 years (-29) State of Texasaverage build age 44 (-42) Owner Name Heppner Family Home Trust 325 N Saint Paul St Ste 4850 % Brad Heppner, Bradley K. Heppner serves as Chairman of the Board of the Company. In a separate email to Sen. Tom Holland, a Democrat from Baldwin City, who has called for an end to the TEFFI program. Newcomer Kastra ElionVodka, owned by Dallas own Moll Anderson and her son, Mike Camello of LA, was served as a refreshing arugula gimlet. System , , . The company also provided financial statements that show the TEFFI has designated a sliver of mostly illiquid assets for rural development in 117 separate trusts managed by John Stahl, a GWG Holdings associate. There are no deposits in a TEFFI, so it is not FDIC insured. Cant you get me a little bit of that money to reopen the grocery store here in town? Heppner said. A Dallas-based financial services company recently got in the business of offering fast liquidity for alternative assets. Within two years, Heppner predicts, as many as 50 companies eager to operate as a TEFFI could open an office in the town about 40 minutes north of Wichita. 1. Early in his career, Brad K. Heppner worked as an analyst for Goldman Sachs and Company. 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. He also said the city complex might be scaled down in size. Heppner founded Beneficient Management Group in 2003 and Beneficient Holdings in 2010. The program poses a reputational risk to Kansas, the bank commissioner says. But there are some components that have to be put together first.. The house has been dubbed Sunfields Manor and is the new Volk Estates residence of Aurelia and Brad Heppner. 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. Rep. Stephen Owens, a Republican from Hesston, touted the new program in an interview with KAKE-TV during an April 2021 news conference. He is a lifelong Kansan. GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX. 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. To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who establishes a relationship or carries out a transaction with the financial institution. Why is this public record being published online? The TEFFI bill passed the Senate by a 39-0 vote but met some resistance in the House. One-fifth of that figure goes to the Department of Commerce while the rest goes to a charity of the TEFFIs choosing. 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. 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.. Youre haggling over how much is my asset worth?. Heppner, in his January interview, said the assets in the trusts could be monetized over four to seven years. In an April 7 interview in his office in downtown Hesston, Emry said he has a fairly good pulse on the community fabric, and residents of the town only have good things to say about their native son. 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. Save all of your favorite content in one curated collection. Heppner frequently mentions how the states lax regulations served as a beacon for credit card companies that now base their operations in Sioux Falls. . Sign In. Drone Boats: Inside the U.S. Navys Latest Unmanned AI Tech, Watch: California Floods Leave Behind Washed Away Houses, Submerged Cars, Climate Activist Greta Thunberg Detained in Germany During Coal Mine Protest, Why the FTC Says Noncompete Clauses Are Hurting the Economy. The commissioner expressed his disappointment for missing out on such a lucrative opportunity, Heppner said. Emry said the city would know by the end of March if Hesston would receive the grant. Heppner presented legislation that would allow him to operate a trust company that only deals within a volatile market providing immediate cash as a loan for high-value assets that arent traded publicly and cant be easily sold. a Dec. 7 meeting of the oversight committee. I got to drive to Newton to get groceries the grocery store, the last one just closed down. And well see that benefit float little towns like mine across the state., by Sherman Smith, Kansas Reflector April 24, 2022. And theres always potholes in business, as every business person knows. 20 Over the last 8 years, insiders at GWG Inc have traded over $0 worth of GWG Inc stock and bought 200,000 units worth $2,500,000 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. Heppner made his pitch to legislators in a March 22, 2021, hearing before a House committee and again on March 29, 2021, before a Senate committee. 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-enabled fiduciary financial institution." As he faces allegations of fraud and the SEC investigates his former business, Kansas legislators continue to support his unique business. 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 won support for the legislation by promising to bring a grocery store back to Hesston, and that was just the beginning of his plans. Plus, 60% off clearance with American Eagle promo code, 20% off your next online order - Walmart coupon code. Most cases are handled on a contingent fee basis, meaning that you wont owe us until we recover your money for you. I tracked down the divine Miss Peck (she was hard to miss in the stunning Tibi dress she recently scored at Bolkes store The Conservatory) and asked about how she concocted such a fabulous affair. Heppner said a 40,000-square foot city complex was a large format. , . Brad was unfortunately in New York City, but was in attendance virtually as his assistant walked around a laptop where he was Zooming in to greet guests. Owens accused Herndon of standing in the way of a potentially $9 trillion industry. 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. having the highest compensation of $4,327,411. Cookies used: PHPSESSID, pum_alm_first_activity, pum_alm_last_activity. Russian TV Touts a Big Victory in Ukraine. Wealthy individuals, institutions and private equity funds have trouble liquidating alternative assets, such as private equity, venture capital, real estate, natural resources and life insurance policies. He said he credited a lot of his success to being a graduate of Hesston High.