Hecker keeps defense attorney after all

Friends, not taxpayers, will pay for the criminal defense of former auto giant Denny Hecker, according to his attorney, Bill Mauzy, who told federal prosecutors and the judge Monday that he won't quit after all.

Hecker's other attorney, Marsh Halberg, however, did quit the case. He had said previously that Hecker didn't have the money to pay his legal fees.

Mauzy said he will stay, despite submitting a motion earlier this month to withdraw as Hecker's counsel.

U.S. Magistrate Judge Susan Nelson warned Mauzy that it would be harder for him to withdraw later. Mauzy replied that he understood. He told reporters that Hecker's friends were assembling a legal defense fund. He also expressed hope that Hecker will receive some money now tied up in his divorce proceeding.

"I chose to continue to represent Denny because I want to be his lawyer. I believe in his defense to the criminal charges against him. And I want to be the lawyer to present those defenses to a jury," Mauzy said.

Asked what he would do if friends can't raise the money, Mauzy chuckled and insisted the funds would be raised and he would continue to represent Hecker.

Hecker has been indicted on 25 federal counts of wire fraud, bankruptcy fraud, money laundering money and conspiracy. Some of the charges allege he used fraud to get loans from Chrysler Financial and other lenders. The government also accused Hecker of failing to pay-off auto customers's tax and title fees and liens on trade ins.

Mauzy said that a third indictment might be coming. Affidavits unsealed last week revealed a wide government investigation of Hecker's business activities, including allegedly fake auto insurance claims and misleading or altered loan documents involving Mitsubishi, GE Capital and Hyundai.

Hecker earlier had said he intended to ask for a public defender because he had no money. It is not clear who now will come to his aid.

A state judge handling his divorce previously rejected Hecker's request to tap $100,000 in a 401(k) retirement account to pay his attorney. Mauzy said he believes Hecker is entitled to the funds. Mauzy blamed Hecker's financial straits "in large part to the unexpected and indeed cataclysmic" judgment against him in bankruptcy court.

The judge in Hecker's $767 million bankruptcy decided last month not to forgive $83 million he owes Chrysler Financial. Hecker agreed last week that his remaining debts also wouldn't be forgiven.