Dallas, TX
Dallas investment firm sues WSJ reporter with lawyers from Dominion-Fox News case
Beneficient, a Dallas financial services company, has hired the same law firm that represented Dominion Voting Systems in the high-profile lawsuit against Fox News to file a defamation lawsuit against a Wall Street Journal reporter.
Lawyers from Clare Locke on Friday filed a defamation lawsuit in U.S. District Court in East Texas on behalf of Beneficient and its founder and CEO Brad Heppner asking for undisclosed compensatory and punitive damages over a Tweet and series of articles published over the past year in the newspaper by staff writer Alexander Gladstone.
The Wall Street Journal published a story on Friday that quoted private documents it viewed that showed Beneficient was using a faulty accounting method that would misstate revenue and showed payments went to Heppner’s nearly 1,500-acre ranch in East Texas. The Journal said that in 2019, chief financial officer Tiffany Kice, made the discoveries and left the company. Three board members and other c-suite executives left the company within months.
GWG Holdings, a company that invested in Beneficient, defaulted on $2 billion in debt last year and filed bankruptcy, leaving individual investors with as much as $1.3 billion in potential losses, the article reported.
The Wall Street Journal is owned by Rupert Murdoch’s News Corp. and Murdoch is chairman of Fox News Corp. which settled a two-year lawsuit in April by paying Dominion $787 million, believed to be a record settlement in a media case, to end the legal battle over the network spreading lies about the 2020 election.
Beneficient said in its complaint that “Gladstone has purposefully disregarded critical facts, distorted critical timelines and cherry-picked the information he has received to promote an overarching, pre-ordained conclusion: Brad Heppner, through his control of Beneficient and other companies, engineered self-serving transaction to enrich himself – and maintain a so-called ‘lavish lifestyle’ – at the expense of vulnerable and elderly ‘retail’ investors.”
The complaint went on to say that Heppner can prove the statement is false and that Gladstone published his stories with “malice.”
Gladstone hasn’t responded to a request for comment and The Wall Street Journal declined to comment. Beneficient declined to comment.
A Tweet from Gladstone a year ago called out Heppner’s ranch in Anderson County saying its debt was funded by transfers from Beneficient and its former parent company, GWG Holdings, which is in the process of a bankruptcy court-led reorganization.
Other prominent Twitter accounts piled on with likes and replies, according to Beneficient’s lawsuit.
“Gladstone’s Twitter audience — and others in the community — have taken Gladstone’s allegations at face value and now believe that Heppner and Beneficient acted improperly,” the lawsuit said.
Heppner purchased the Bradley Oaks Ranch in 2003, according to the lawsuit, which noted that was 16 years before GWG started investing what ended up being a total of $230 million in Beneficient.
Beneficient disclosed in its annual filing that on June 29 the Securities and Exchange Commission notified the company and Heppner that the agency’s staff had made a preliminary determination to recommend that the SEC file a civil enforcement action against the company, alleging SEC violations relating to Beneficient’s association with GWG.
Heppner said in the filing that he and the company intend “to vigorously defend himself and contests any allegations of wrongdoing.”
Beneficient had a partnership with GWG before separating into an independent company in November 2021, the lawsuit said. Heppner joined the GWG board in April 2019 as chairman, but the lawsuit says that he was not a member of the special committees that decided to invest in Beneficient.
GWG, which issued high-yield bonds that financed the purchase of life insurance policies on the secondary market, filed for bankruptcy in April 2022 after it missed interest payments to bondholders. GWG had previously disclosed that the Securities and Exchange Commission was investigating its accounting practices, according to regulatory filings.
Current and former Beneficient and GWG board members are high-profile individuals including two former Federal Reserve Bank district presidents. Former Dallas Cowboys quarterback Roger Staubach who built a large commercial real estate company is no longer a board member.
Former Dallas Fed Bank president Richard Fisher, former Atlanta Fed president Dennis Lockhart and leverage buyout financier Tom Hicks are current Beneficient directors.
Friday’s article in the Wall Street Journal said Fisher, Lockhart and others have been accused in court filings of “of facilitating a Ponzi scheme orchestrated by Heppner.”
Beneficient went public in June after it was acquired last year by Avalon Acquisition with the intention of taking it public through its SPAC, or special purpose acquisition company structure. Beneficient ended up raising about $8 million from the IPO, according to the WSJ.
Dallas, TX
Cowboys coaching search: Could Jason Witten replace Mike McCarthy?
Dallas Cowboys owner Jerry Jones is exploring options for a new head coach following the departure of Mike McCarthy, and one name generating buzz is franchise legend Jason Witten. Known as the best tight end in Cowboys history, Witten has long been a favorite of Jones and is being considered for the high-profile role.
McCarthy and the Cowboys parted ways after five seasons, ending a tenure that included three consecutive 12-5 records but just one playoff win. The coaching search is officially underway, and Witten’s name has surfaced alongside other contenders.
Witten, an 11-time Pro Bowler and the franchise leader in games starts, receptions, and receiving yards, has deep ties to Dallas. While his coaching experience is limited to leading a private high school team to a state championship, his leadership qualities and familiarity with the organization make him a compelling, albeit unconventional, option.
If hired, Witten would follow a path similar to Detroit Lions head coach Dan Campbell, another former Cowboys tight end. Campbell transitioned to the NFL coaching ranks after years of assistant coaching experience, a step Witten has yet to take. However, Jones has a history of making bold decisions, and Witten’s intimate understanding of the Cowboys’ culture could give him an edge.
While some question whether Witten’s high school coaching background is sufficient preparation for the NFL, Jones values loyalty and passion for the franchise, qualities Witten embodies. His connection with the Cowboys and leadership on and off the field could make him an intriguing choice to guide the team into its next chapter.
Jones’ next coach will be his ninth. The first four were first-time NFL head coaches, starting with Jimmy Johnson when Jones bought the team in 1989. The former University of Miami coach won back-to-back Super Bowls before an acrimonious split with Jones, his college teammate at Arkansas.
Three of Jones’ past four hires had NFL head coaching experience, including Super Bowl winners Bill Parcells and McCarthy. The exception was former Dallas quarterback Jason Garrett, the longest-tenured coach under Jones at nine-plus seasons.
The Cowboys have yet to release updates on the search, but Jason Witten remains a name to watch as the process unfolds.
Dallas, TX
Dereck Lively Gets Key Ankle Injury Update For Dallas Mavericks
About four minutes into the Dallas Mavericks’ recent contest against the Denver Nuggets, starting center Dereck Lively left the contest with an ankle injury.
Evidently, the Mavericks are already dealing with massive injuries to Luka Doncic and Kyrie Irving. Those two superstars lead the team and Lively is right up there as one of the more impactful players on the team.
However, just one day after the injury, Lively has already gotten X-ray updates back on his sprained right ankle, and it’s a bit of a relief for Mavericks fans. Chris Haynes provided the recent update.
“Dallas Mavericks center Dereck Lively II received an X-ray on his sprained right ankle and results were negative. No timeline established as of now,” Haynes reported.
The Mavericks are struggling to stay healthy, though doing so by April is the main goal and it’s just January. Lively has had issues remaining on the hardwood for the club in his inaugural two seasons, and it’s leaving some fans concerned.
READ MORE: Latest Timeline for Luka Doncic’s Return to Dallas Mavericks Revealed
Stick with CommanderGameday and the Locked On Commanders podcast for more FREE coverage of the Washington Commanders throughout the 2024 season.
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Dallas, TX
In messy city manager search, Dallas council failed in its fundamental job
The Dallas city manager search has unspooled in the chaotic style we’ve come to expect from this City Council. There was the ho-hum recruitment brochure draft featuring the wrong skyline. There was the council civil war over the timeline of the search and the flow of information about candidates. And nothing says “we’ve got our act together” like eleventh-hour candidate interviews the day before Christmas Eve.
When two original semifinalists and a former Dallas city official dropped out of the race, no one was surprised.
We wish the next city manager the best of luck because no amount of talent and hard work can overcome a fundamental flaw of this search, and that is the lack of formal, measurable goals by the City Council. Our city is about to hire its CEO, but its board of directors has no metrics to set expectations or hold that person accountable for the most important job in Dallas.
If you want to understand how dysfunctional the situation is, start with the fact that the council’s appointees — the city manager, city attorney, city secretary and city auditor — haven’t had a performance review in more than two years. Our last city manager, T.C. Broadnax, had his last evaluation in August 2022. He left in May 2024. Interim City Manager Kimberly Bizor Tolbert, the front-runner for the job, hasn’t had an evaluation since her appointment last spring.
The council has hired a consultant over the years to help conduct the evaluations of its appointees. But no consultant can fix this council’s main problem, and that is its inability to come together to develop a consensus around four or five priorities and the metrics to measure progress in those areas.
Even when performance reviews for council appointees were happening, the process was broken. The council’s consultant called council members individually to solicit feedback, with the consultant identifying “themes” shared verbally with the council, and with no particular comments attributed to specific people, according to a 2022 memorandum from Management Partners, the firm hired to do the work. The city manager and other appointees were “invited” to prepare a report on their accomplishments and goals for next year, with the potential for “refinements” based on council input.
There was no written report from the performance evaluation, other than any goals reports produced by the appointees.
It’s a shockingly wishy-washy approach to evaluating an employee, let alone a C-suite executive.
And don’t expect even a veneer of transparency for taxpayers. Last year, we requested Broadnax’s goal reports and were told by the city that there were no responsive records, only to hear a council member remind her colleagues last week that Broadnax produced a memo with his goals after his last performance review in 2022. City staff failed to release this memo in response to our request. Such a document should be public under the Texas Public Information Act.
Now, on the brink of hiring its next city manager, the council is panicking about the fact that it hasn’t evaluated its council appointees in a long time and that it has no measurable goals for any of them. The council committee whose job it is to codify the annual review process can’t seem to agree on how to move forward.
Mayor Pro Tem Tennell Atkins chairs the committee. In a December meeting, he led a discussion on next steps to resume performance reviews of council appointees. Council members learned that their previous consulting firm, Management Partners, had been acquired by Baker Tilly, the company that is leading the messy city manager search. But the woman who had worked closely with the council on previous performance reviews was no longer associated with either company.
The committee gave city staff mixed signals on how to proceed. Some council members said they wanted to continue working with the previous consultant. Others asked to hear from Baker Tilly. Some said they were dissatisfied with the previous consultant or concerned about Baker Tilly and wanted to hear from other vendors. Council members said to move quickly.
By the time the council committee picked the conversation back up this month, confusion reigned. Baker Tilly prepared a presentation that described a performance review process very similar to what the council had with its previous partner. Atkins indicated that the council was moving forward with Baker Tilly using an existing contract, and other committee members pushed back. Meanwhile, an assistant city manager and an assistant human resources director couldn’t answer a council member’s simple question about when the council appointees were last evaluated.
“Yes, we are overdue for these reviews, but I think that they should be pursued seriously with the appropriate time periods involved,” said council member Paul Ridley. “I don’t think we should out of convenience select someone who is doing other work for the city at the present time.”
Council member Jesse Moreno asked whether Baker Tilly would have a conflict of interest in facilitating the performance review of an executive the firm helped hire. A representative tried to assuage Moreno, but he is right to bring that up, given that Baker Tilly would be required to conduct a new search at no cost to Dallas if the city manager doesn’t last a year. Council members should be skeptical. (Keep in mind it was Baker Tilly that produced the hiring brochure for Dallas city manager. The cover photo was a shining image of the Houston skyline.)
The council now seems poised to consider other consultants for the performance evaluations. Council members should do their due diligence instead of repeating their sloppiness for the sake of comfort.
Hire a consultant, if you must, to moderate the conversation or offer pointers, but a management firm can’t do the hard work for you.
Outgoing council member Jaynie Schultz said it best: “This problem is ours as a council. We have not done our work. And so we can try spending all of our time diverting all the problem and the blame on Baker Tilly. … The delay is us, 100% us.”
The council’s job is not to run the city but to set clear, measurable expectations for the people it hires to do that. It’s telling that council members have relied on a consultant to remind them to perform a fundamental duty.
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