Judge Approves New Defense Counsel for Brad Heppner
The convicted executive will be represented by new attorneys following a breakdown in communication before sentencing.
Updated on Oct. 21, 2026 in Financial Crime
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U.S. District Judge Jed Rakoff has granted the withdrawal of Brad Heppner's former defense team due to irreconcilable disagreements. New attorneys Alexandra Shapiro and Jonathan Bach have entered their appearances to represent Heppner in federal court.
Why it matters
The change in legal counsel comes as Heppner faces sentencing for his 2026 conviction on charges of securities fraud, wire fraud, conspiracy, and making false statements. The development stems from a fundamental conflict regarding his defense strategy for the upcoming sentencing hearing.
Brad Heppner was convicted in May 2026 of defrauding GWG Holdings of $150 million, a crime that carries a maximum sentence of 20 years per count. The legal proceedings are currently ongoing with the transition of his defense team.
The players
Brad Heppner
He is the former CEO of Beneficient who was convicted of orchestrating a $150 million fraud scheme against GWG Holdings.
Jed Rakoff
He is a U.S. District Judge presiding over the federal court proceedings for the criminal case against Brad Heppner in New York City.
Alexandra Shapiro
She is an attorney who has officially entered her appearance as new defense counsel for Brad Heppner.
Jonathan Bach
He is an attorney who has joined Alexandra Shapiro to serve as the new legal representative for Brad Heppner.
The details
Benjamin O'Neil and five other lawyers requested to exit the case after a breakdown in communication with Heppner. The defendant previously resigned as CEO of Beneficient in 2025 following his indictment for the multi-million dollar fraud scheme.
Timeline
2024: Sam Bankman-Fried was sentenced to 25 years in prison.
2025: Brad Heppner resigned as CEO of Beneficient.
2025: Sean Combs was sentenced to four years in prison.
November 2025: Brad Heppner was indicted for defrauding GWG Holdings.
May 2026: Brad Heppner was convicted of fraud by a federal jury.
Legal Context
The prosecution of financial fraud cases in New York City follows a pattern set by the 2024 sentencing of Sam Bankman-Fried. These cases reflect a broader trend of federal courts imposing significant prison terms for complex corporate fraud schemes.
While the legal proceedings primarily impact the defendant, the case underscores the regulatory scrutiny surrounding companies with unique bank charters like Beneficient. Local stakeholders should monitor court filings for information regarding potential restitution or the impact on company operations.
The takeaway
Heppner maintains his intention to appeal his fraud convictions despite the significant change in his legal team. The court will now proceed with sentencing preparations under the guidance of his newly appointed defense counsel.
Further reading
For more information on ongoing prosecutions, visit New York City Financial Crime.
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