Hecker's benefactor is ordered to court

Judge demands to know if mystery donor can repay taxpayers for auto mogul Denny Hecker's legal costs.

October 7, 2010 at 2:12AM

An unidentified donor who has offered to pay a top Twin Cities attorney to represent Denny Hecker may be required to reveal the source of the money and to reimburse the government for the bankrupt auto dealer's earlier legal defense, a judge ruled Wednesday.

The order by U.S. Magistrate Judge Susan Nelson comes days after Hecker, 58, told the court that he has a new donor and wants to rehire his former attorney, Bill Mauzy. Hecker has been represented by court-appointed attorney Brian Toder at taxpayers' expense since April, when he reportedly ran out of money.

At the time, Nelson told Hecker that he would be expected to repay the government all legal fees should he ever choose to secure his own counsel. At the time, Hecker said he understood that.

But last week, Hecker and Mauzy filed a motion to change attorneys, with the stipulation that the donor's money only be paid directly to Mauzy.

On Wednesday, Nelson ordered that Hecker and Mauzy notify the donor to attend an Oct. 18 hearing and "be prepared to testify as to the ultimate source of said funds and his or her ability to reimburse the public for the funds already expended ... for Hecker's representation."

Hecker responded with a request to file sealed documents in court.

Nelson earlier said she will allow Katherian Roe, the federal public defender for Minnesota, and Randy Seaver, the bankruptcy trustee in charge of liquidating Hecker's estate, to submit documents and testimony regarding the attorney substitution.

Seaver has repeatedly accused Hecker of living the high life by hiding assets after filing for bankruptcy protection in June 2009.

In March, Hecker was indicted on charges of defrauding Chrysler Financial of more than $13 million in fleet financing funds. Hecker gave up his fight for bankruptcy protection in the spring, leaving him on the hook for more than $400 million.

Last month, Hecker pleaded guilty to one count of bankruptcy fraud and one count of conspiracy. In the last nine days, two of his former employees also pleaded guilty to fraud charges. All three await sentencing, which is not expected until March or April.

Dee DePass • 612-673-7725

about the writer

about the writer

Dee DePass

Reporter

Dee DePass is an award-winning business reporter covering Minnesota small businesses for the Minnesota Star Tribune. She previously covered commercial real estate, manufacturing, the economy, workplace issues and banking.

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