Lawyers for convicted felon who led Kansas venture once defended Sean Combs, Sam Bankman-Fried

Brad Heppner, the former CEO of Beneficient, sidestepped sentencing Wednesday for fraud related to draining at least $150 million from a now-bankrupt company. A unique Kansas bank charter issued to Beneficient at Heppner's request didn't live up to expectations in terms of economic growth. In this April 22, 2022, photo, a Beneficient sign is installed at the company's office in Hesston. (Photo by Sherman Smith/Kansas Reflector)

TOPEKA — The former CEO of a company holding a special Kansas banking license avoided sentencing Wednesday on fraud convictions after his attorneys withdrew based on claims a communication breakdown made representation “unreasonably difficult.”

U.S. District Judge Jed Rakoff granted approval for departure of attorney Benjamin O’Neil and five other lawyers representing former Beneficient CEO Brad Heppner, a Kansas native convicted of fraud by a federal jury in May. Heppner plans to appeal. Attorneys filing notice to take over representation of Heppner included Alexandra Shapiro, who represented musician Sean “Diddy” Combs and cryptocurrency company founder Sam Bankman-Fried.

Heppner helped convince the Kansas Legislature to force state regulators to grant Beneficient a special bank charter. The credential obtained by Beneficient enabled the company to take a different marketing approach to its asset-swap services. Legislators supportive of Beneficient said the venture would anchor Kansas to the niche business and the company would become a powerful economic development tool for the state. Beneficient struggled to turn a profit and the banking concept didn’t interest other financial services firms. Dallas-based Beneficient remains the only company with the Kansas charter.

In the wake of Heppner’s resignation in 2025, Beneficient executives sought to maintain the charter and distance themselves from Heppner. Kansas regulators have repeatedly urged the Legislature to cancel the company’s charter.

Heppner, who pleaded not guilty to all charges, was convicted of securities fraud, wire fraud, conspiracy to commit wire and securities fraud, and making false statements to auditors. He faces a maximum of 20 years in prison on each fraud count.

Heppner was at the center of a scheme to defraud now-bankrupt GWG Holdings of an estimated $150 million, prosecutors said. Heppner led GWG before transitioning to Beneficient and seeking the business alliance with Kansas.

Court records filed in New York City indicate Heppner’s attorneys at the firm of Quinn Emanuel Urquhart and Sullivan in Washington, D.C., were no longer able to serve Heppner’s interests because of a “complete breakdown in communications” before the sentencing date. Details of the “fundamental disagreement” between Heppner and his attorneys were outlined in a document sealed by the judge.

“This fundamental disagreement has ripened into an irreconcilable conflict and caused a complete breakdown in the lines of communication between Mr. Heppner and Quinn Emanuel regarding Mr. Heppner’s upcoming sentencing,” O’Neil’s filing said. “Quinn Emanuel cannot effectively discharge its duties to Mr. Heppner.”

On Tuesday, Shapiro and Jonathan Bach of the Shapiro Arato Bach law firm in New York City entered their appearances with the federal court on Heppner’s behalf.

Promotional materials associated with Shapiro Arato Bach indicated it specialized in high-stakes criminal and civil disputes and defended “individuals and entities facing existential threats to their reputations, businesses and livelihoods.”

Combs was sentenced in 2025 to four years in prison for providing transportation for the purpose of prostitution. Bankman-Fried, founder of the FTX cryptocurrency exchange, was sentenced in 2024 to a prison term of 25 years for financial fraud.

Heppner was indicted in November 2025 for defrauding GWG Holdings. He was found to have funneled cash through a shell company he controlled and converted much of the money to personal use. The indictment says he spent $40 million on a Dallas mansion and $20 million to pay taxes. Prosecutors say Heppner spent lavishly on travel and jewelry.