Hecker's jail stay just got a lot longer

Denny Hecker on Monday traded his home-monitoring bracelet for what he thought would be a short stay in a jail. On Tuesday, it became apparent that the fallen auto mogul could remain incarcerated for a long, long time.

Hecker, 58, was jailed after a hearing Monday at which he was given a Wednesday deadline to disclose all his spending and assets. But U.S. District Chief Judge Michael Davis clarified his order Tuesday, ruling that "defendant Dennis Earl Hecker shall remain in custody until sentencing."

Davis was clearly unhappy with Hecker's excuses and explanations about how he recently acquired and spent $200,000 when he allegedly had no money and required a public defender. Davis' order Tuesday means that Hecker could spend the next 10 years in prison -- starting now.

Hecker's sentencing isn't expected until early next year. Then he faces up to 10 years in prison after pleading guilty on Sept. 7 to two counts of bankruptcy fraud and defrauding Chrysler Financial out of more than $13.8 million in loans.

Hecker's abrupt incarceration comes after a stunning two-year financial collapse that transformed him from Minnesota's mega-auto dealer to a bankrupt felon.

The latest chapter began two weeks ago when private attorney Bill Mauzy filed a court motion to once again represent Hecker, thanks to a controversial $55,000 retainer paid by Hecker's friend Ralph Thomas. In a phone interview Tuesday, Mauzy said that the judge will probably decide Wednesday whether to allow Mauzy to represent his former client.

Hecker was alternately represented in court Monday by Mauzy, his court-appointed criminal attorney Brian Toder and bankruptcy attorney Barbara May. Davis' court order allows Hecker's attorneys to file motions requesting an earlier release. Those motions, which were not filed as of late Tuesday, will be reviewed and decided upon by Davis later, Mauzy said.

But in a surprising turn of events, Monday's hearing about legal representation quickly turned sour as Hecker and Thomas, who has a net worth of $18 million, were alternately called to the stand and grilled by Davis about their friendship, money transfers, business deals and Hecker's spending.

The change in tone surprised Mauzy, who said previously that he expected a straightforward hearing. In the end, however, his potential client was led off to jail and Thomas' retainer fees were frozen until further notice.

Hecker is being detained at the Sherburne County jail while his attorneys and friends scramble to secure receipts and bills documenting his elaborate spending between June and September. The accounting must be presented to the judge at 2 p.m. Wednesday.

Hecker, who had been under house arrest, frustrated prosecutors and Davis with his testimony Monday. They were most displeased with Hecker's admission that he quietly spent huge sums after cashing in $154,000 worth of life insurance policies and securing another $40,000 through his 401(k) and $15,000 from a bankruptcy court settlement.

Hecker failed to inform the bankruptcy court about the cash he'd come into and made no attempt to repay the government for costs associated with his criminal court-appointed attorney.

"Do you realize that since you pleaded guilty [on Sept. 7] you received an additional $50,000 that was never reported to the court?" Engisch asked incredulously.

Electricity cut off

Hecker insisted that he was repaying outstanding debts and paying bills associated with maintaining his Medina house. He portrayed himself as somewhat of a victim, noting that he was being evicted from his home, that the electricity in the house had been cut off over nonpayment and that he has attention deficit disorder so he was unable to immediately recall certain dollar amounts or the location of certain documents. Hecker told the judge that he had receipts for a number of questioned expenses.

Hecker's spending offended prosecutors because Hecker had promised on two occasions to repay the government for all legal costs should he ever come into money.

He never did, Engisch said. The whole case is "a travesty," she said. Hecker's friend Thomas testified that he and a wealthy North Dakota potato farmer named Ron Offutt provided the $55,000 toward a retainer so that Hecker could hire Mauzy. Thomas told the judge that he did not want his money to be used to pay Hecker's past legal obligations. It was to be used for Mauzy only, he said. Thomas added that he did not expect any of the money to ever go to Hecker and that he did not expect to be paid back.

The entire situation rubbed Judge Davis the wrong way.

"Why is it that you keep coming up with funds? It boggles my imagination," Davis told Hecker, who filed for bankruptcy protection last year and whose criminal defense has largely been paid for by taxpayers.