Key Highlights:

• Former GWG Holdings chairman indicted on five charges, including securities fraud
• Allegedly stole over $150 million through self-serving transactions
• DOJ alleges funds were used for personal expenses, including mansion renovations

WASHINGTON, Nov 4 (Reuters) – Bradley Heppner, former chairman of bankrupt financial services company GWG Holdings and founder of alternative asset firm Beneficent, has been indicted on five criminal charges, including securities fraud and wire fraud, the U.S. Department of Justice announced on Tuesday.

The indictment, filed in the Southern District of New York, alleges Heppner orchestrated a scheme to misappropriate more than $150 million from GWG while serving as its chairman.

Authorities say Heppner used a shell company, Highland Consolidated, which he controlled, to extract funds from GWG through a series of misrepresentations and self-serving transactions.

“As alleged, Heppner abused his role as a public company executive to loot the company and funnel money into his own pockets,” said Jay Clayton, U.S. Attorney for the Southern District of New York.

Heppner, 59, chaired GWG Holdings and Beneficient from 2019 to 2021. GWG filed for bankruptcy in 2022 with $2 billion in debt while under investigation by the Securities and Exchange Commission for accounting irregularities.

The indictment also includes charges of false statements to auditors and falsifying records. The DOJ stated that Heppner used the stolen funds for personal expenses, including renovating his Dallas mansion and maintaining a lavish lifestyle.

After Heppner allegedly exhausted his ability to siphon GWG’s assets, he separated from the company, which subsequently filed for bankruptcy, resulting in losses exceeding $1 billion for thousands of investors and bondholders.

A lawyer for Heppner declined to comment on the charges.