Kansas Urged to Repeal TEFFI Act After Fraud
Kansas bank regulators are urging lawmakers to repeal the state TEFFI Act and revoke a financial firm's charter following the fraud conviction of its former CEO. The controversial law enacted in 2021 has generated zero new applicants and faces mounting bipartisan scrutiny.
Kansas state bank commissioner David Herndon urged lawmakers to repeal the state's TEFFI Act after five years of zero new applications and the fraud conviction of BENEFICIENT - CLASS A founder Brad Heppner.
The law, enacted in 2021 with broad bipartisan support, was tailor-made for the Texas-based financial firm and limited the authority of state banking regulators. Herndon told the Joint Committee on Fiduciary Financial Institutions Oversight during a late September hearing that the company is in a financial death spiral.
