Hecker's wife wants divorce, $15M

Denny Hecker's estranged wife claims in court filings that he lied to her about his financial straits.

By ROCHELLE OLSON, Star Tribune

Last update: August 6, 2009 - 11:18 PM

The divorce of fallen auto magnate Denny Hecker and his wife of 15 years is back on, and she accuses him of lying about his financial standing during aborted divorce proceedings last fall -- before the collapse of his dealership empire.

In court papers obtained Thursday, Tamitha Hecker seeks $15 million and sole custody of the couple's two children, ages 14 and 8. The couple started divorcing in April 2008, but formally halted proceedings in late October, while also coming to new terms about how their finances should be divided should they divorce. Under that agreement, she would receive $10 million if they divorce, rather than the $15 million they specified in a 2003 postnuptial agreement, her petition said.

Shortly after they halted the divorce, Hecker's financial troubles publicly erupted when he sued Chrysler Financial Services for pulling his lines of credit.

Tamitha Hecker, 42, now claims the 2003 agreement should be enforced rather than last fall's agreement, because Denny Hecker, 56, failed to provide a "full and fair disclosure" of his earnings and property as required by law.

The new divorce action commenced July 29 in Hennepin County District Court. Its higher-stakes demand represents yet another pricey headache for Hecker, who is named in numerous claims by creditors around the country. He has filed for personal bankruptcy, claiming that he has $18.5 million in assets and owes $767 million.

In U.S. District Court last month, Hecker repeatedly claimed not to know about various investments. He also testified that he had a personal relationship with Christi Rowen and gave her a $60,000 fur coat and other gifts.

Tamitha Hecker's 11-page divorce petition cites an "irretrievable breakdown of the marriage."

Regarding the alleged financial misrepresentations, she said in the filing that Hecker failed to specify all outstanding personal liabilities. In February 2009, her petition states, she learned for the first time in a conversation with her husband that Chrysler Credit held a "blanket lien" on everything he owned, including his non-business related limited liability companies (LLCs). Hecker set up LLCs to hold full interest in the Heckers' primary residence in Medina as well as other properties -- more than 100 such companies in all.

He testified in bankruptcy court that a prenuptial agreement led him to put the property in company names rather than his own.

Tamitha Hecker said her husband failed to inform her of the lien until this year even though he signed it in early 2002, personally granting guarantees that would entitle the creditor to what he described to her as "everything we have," including tax refunds.

She said she verified his claims through court documents filed by Chrysler Financial Services this year.

Her petition says she also learned that her husband signed a $42 million note with Chrysler in October 2007, making all his property subject to cross-collateralizing and cross-defaulting. That means a single default to any lender would allow Chrysler to foreclose on all properties.

She cited various other failures to disclose, noting that "all of the family's property was pledged as collateral against personally guaranteed debt which was, at the time of" the earlier divorce action "apparently in substantial default."

The case is being handled by Hennepin County District Court Judge Jay Quam.

Tamitha Hecker's lawyer was unavailable for comment. Hecker's lawyer didn't return a call.

Rochelle Olson • 612-673-1747

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