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Trustee asks judge to hold Hecker in contempt
The trustee says the former auto dealer failed to produce financial records.
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A U.S. bankruptcy trustee asked a judge Thursday to fine and hold former auto dealer Denny Hecker in contempt of court for failing to turn over business and personal records due earlier this week.
The trustee also demands Hecker turn over all the missing records within 24 hours. The motion comes after Hecker missed an earlier deadline requiring him to produce the records by Wednesday.
The trustee wants records dating back as far as January, including credit card and bank statements, check images, wire transfers, tax statements, maintenance and utility bills for Hecker's Medina and Crosslake mansions, travel and lodging expenses and business accounting ledgers for several of Hecker's companies and associates.
The trustee also sought specific information on Hecker's Northstate Financial Corp., New Dimension Advisors and Inver Grove Investments, as well as information on girlfriend Christi Rowan and any documents relating to lease or purchase of an aircraft or payments to Simcon Training Center.
A court hearing on the matter is set for Nov. 18.
Thursday's contempt motion by trustee Randy Seaver landed the same day that bankruptcy Judge Robert Kressel agreed to let Toyota Motor Sales USA terminate its Brainerd auto dealership agreement with Hecker.
Toyota still hopes to sell the shuttered dealership, valued at more than $10 million. Toyota took over the store this summer after Hecker defaulted on loans and failed to pay workers. However, Toyota shut the store in September and has been working to secure a sales deal with Twin Cities auto dealer Paul Walser.
Last month, Kressel refused to approve a sale to Walser that would not have resulted in much money for Hecker's creditors and would have left Hecker with a sizable nest egg. It's unclear if an agreement can be salvaged.
Hecker filed for bankruptcy in June after the collapse of a large auto business that once touted $6.8 billion in annual revenues. But in the past year, he defaulted on loans and Chrysler Financial pulled Hecker's credit line. Other backers followed. Hecker has since let go hundreds of workers, closed, sold or lost 26 dealerships, Advantage Rent A Car and various large auto fleet and auto leasing companies.
Hecker, the subject of state and federal investigations, is being sued by at least eight financial firms and claims $767 million in debt and $18.5 million worth of assets.
Hecker, who has not been charged with a crime, said he has done nothing wrong.
Dee DePass • 612-673-7725
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