What’s the ClubFed Party Scene Like?

That’s probably one of the thoughts going through Timothy Heffner’s mind right now. Mr. Heffner, of Pittsburgh, pleaded guilty to fraud, conspiracy and tax evasion charges on Tuesday.

Mr. Heffner, according to the story in the Pittsburgh Post-Gazette, “entertained on a private yacht [and] arrived at parties in a personal helicopter.” The Pittsburgh Tribune-Review noted, “Heffner long has been a mainstay at gala events for Pittsburgh’s social elite.”

So what did Mr. Heffner do? He started his own chemical supply company, BioTechnology Corporation of America. Their website looks formidable, with divisions in synthetic organic chemistry, custom synthesis, etc. (five total divisions). However, the company was run out of Mr. Heffner’s basement (according to the Tribune-Review). Still, being an entrepreneur is admirable.

But Mr. Heffner listed himself as a medical doctor (which he isn’t). Still, lots of Americans embellish their resumes. He also claimed (at one point) he had a Ph.D. (which he doesn’t). He tried to get his local township to approve a helipad because he was part of the University of Pittsburgh’s transplant team (which obviously he wasn’t). And the public record shows that Mr. Heffner had his boating license suspended for one year in 2006 because of his refusal to submit to chemical testing.

How did he afford his nice house in the upscale community of Pine, Pennsylvania, his boat, his helicopter, and his partying lifestyle? His business had something to do with that. He bought rare chemicals from Sigma-Aldrich on the cheap. Very cheap. You see, he had an “in” at Sigma-Aldrich—Robert Wandler, head of Sigma-Aldrich’s rare chemical laboratory. Mr. Wandler “sold” the rare chemicals to Mr. Heffner at artificially low prices (as low as nothing) and Mr. Heffner sold them back to Sigma-Aldrich at high prices. The total fraud to Sigma-Aldrich is, according to prosecutors, more than $2.1 million. Mr. Wandler, by the way, appears to be working on his own plea deal.

But one fraud wasn’t enough for Mr. Heffner. He decided that tax evasion was a good sideline business. His $2,000 veterinary bill ended up being $2,000 in veterinary research, and a deductible business expense. (Hint—don’t do that at home.) Other “business” expenses included an associate’s season tickets for the Steelers, his girlfriend’s cellphone bill, and many similar expenses. The total of his tax evasion is a cool $1.2 million.

The Post-Gazette quoted a former business partner of his, Tommy Kehoe, as saying, “All I can say is the guy’s a fraud. It’s that simple. He lied to me about everything for 10 years…By God, he should get 10 years in prison.” Based on federal sentencing guidelines, he will likely receive 3 to 4 years at ClubFed for just the tax charges, so Mr. Kehoe may get his wish.

Finally, I’ll answer Mr. Heffner’s burning question: the party scene just isn’t that good at ClubFed.

One Response to “What’s the ClubFed Party Scene Like?”

  1. J. Interested Party says:

    Interestingly, as you are chartered in Las Vegas, Mr Heffner and his expenses-relevant girlfriend were married at the Bellagio in 2011.
    The happy couple is surrounded by friends and family in the video which is freely available:

    http://vimeo.com/34724686

    Amazingly, his father-in-law even gives away the bride after what I can only assume was a frighteningly awkward your-daughter’s-hand-in-marriage conversation.
    I would be interested as to what Mr Heffner does as a vocation these days.

    I enjoy your writing and insights on the site.

    With compliments,
    Jeff