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Federal grand jury considering charges against Denny Hecker
Denney Hecker's problems have grown larger: They now include a federal grand jury investigation.
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Wrangling with ex-wives, girlfriends and angry creditors may be the least of Denny Hecker's worries.
Documents filed this week in U.S. Bankruptcy Court reveal that Minnesota's former auto mogul is the focus of a federal grand jury that is meeting to determine whether he should be charged with committing any crimes as he sought loans and desperately tried to salvage his imploding auto sales and leasing empire.
Jurors will determine if he should face charges for, among other things, his business dealings with Chrysler Financial Services Americas, according to a motion his attorneys filed Tuesday in bankruptcy court.
Hecker faces state and federal investigations over allegations of forgery, conspiracy, money laundering, and mail, wire and bankruptcy fraud. In the last week, Hyundai Financial, U.S. Bank, Cornerstone Bank, GE Fleet Services, VisionBank, Alliance Bank and other lenders joined Chrysler Financial in accusing Hecker of committing fraud to obtain greater loans than he was entitled to receive.
Hecker has denied all wrongdoing.
His attorneys said creditors are alleging fraud because they hope a judge will refuse to discharge their loans from the bankruptcy proceedings. Chrysler Financial alone is owed $466 million by Hecker.
A right to take the Fifth
According to the motion Hecker filed Tuesday, his attorneys asked Judge Robert Kressel to stay court proceedings involving Chrysler Financial's fraud allegations until the grand jury reaches a decision. Kressel will conduct a hearing on that motion Oct. 7.
Hecker attorney Bill Mohrman said: "Mr. Hecker's motion to stay the bankruptcy proceeding is normal in these situations. The motion was filed to preserve Mr. Hecker's rights under the United States Constitution," including his right under the Fifth Amendment to decline to testify against himself.
Hecker, who once owned 26 dealerships, Advantage Rent a Car and other auto leasing and fleet operations he claimed were worth $6.8 billion in combined annual revenue, filed for bankruptcy June 4, claiming that he owed $767 million but had just $18.5 million in assets.
Matt McKinney • 612-673-7329 Dee DePass • 612-673-7725
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