BENF News & Events

Beneficient issued a statement regarding the conviction of the company's former chairman and CEO, Brad Heppner, by a federal jury in the United States District Court for the Southern District of New York on charges of securities fraud, wire fraud, conspiracy to commit securities fraud and wire fraud, and false statements to auditors in connection with a scheme to defraud GWG Holdings, Inc. The company said, "As established at trial, Mr. Heppner acted solely on behalf of his family office to perpetrate this scheme through a shell company he controlled. See here for SDNY's press release announcing the verdict. As previously disclosed, the Company parted ways with Mr. Heppner promptly upon learning of clear and credible evidence of his fraud on the Company and has cooperated fully and transparently with the government's investigation and prosecution. The conviction on all counts presented to the jury confirms what the Company has previously disclosed and delivers a significant step towards accountability for Mr. Heppner's misconduct. The conviction puts the Company in a strong position to challenge its purported debt to HCLP Nominees, L.L.C, which was the centerpiece of the criminal charges and conviction at trial, where it was established that Mr. Heppner fabricated the debt. Additionally, the Company is actively evaluating other claims against Mr. Heppner and entities associated with him in light of the verdict and will vigorously pursue such claims. The Company believes that this outcome strengthens the Company's position with respect to these claims and supports the Company's ability to recover value for its stockholders." "The verdict closes an important chapter and allows the Company to operate with increased clarity and confidence the Company and its stockholders deserve," said James Silk, interim CEO. "The Company acted decisively when Mr. Heppner's misconduct came to light, cooperated fully with the government, and have been diligently working to move forward on a foundation of integrity and sound governance. We are energized by what lies ahead - more than ever, we believe Beneficient's mission and platform represent a genuinely meaningful opportunity, and this event improves our positioning to realize it."

Beneficient announced the appointment of Mack Hicks as a member of the Company's Board of Directors. Hicks currently serves as Chief Executive Officer of Hicks Holdings.

Beneficient announced that the United States District Court for the Northern District of Texas has approved the previously disclosed settlement agreement resolving all claims pending in the District Court under the previously disclosed lawsuits relating to GWG Holdings, GWG, against the Company, its subsidiaries, and each of their current and former directors and officers. As previously announced, the Company entered into a binding settlement agreement to resolve all GWG-related claims brought in the District Court and the United States Bankruptcy Court for the Southern District of Texas for a sum within applicable insurance policy limits. As a result of this approval, all the GWG Litigation against the Beneficient Parties will be fully and finally resolved in accordance with the terms of the settlement agreement. The settlement resolves all such claims against the Beneficient Parties without any admission, concession or finding of any fault, liability or wrongdoing by the Company or any defendant.