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Is Hecker helping his girlfriend acquire a Mercedes-Benz?

The latest filing by a trustee in Denny Hecker's bankruptcy seeks permission to subpoena three local imported-auto dealerships.

October 5, 2010 at 11:35AM
Denny Hecker
Denny Hecker (Star Tribune/The Minnesota Star Tribune)
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Even as Denny Hecker remains under house arrest, a bankruptcy trustee wants to know if he's helping his girlfriend acquire a Benz.

Trustee Randy Seaver filed a motion Friday asking a bankruptcy judge for permission to subpoena three local auto-import companies. Seaver said he recently "received information" that Hecker is trying to help his girlfriend Christi Rowan "purchase or lease a new Mercedes Benz."

It is not clear how. Hecker is awaiting sentencing in a criminal fraud case early next year; he wears a GPS ankle bracelet and is not supposed to leave the house at all.

A court hearing on Seaver's subpoena request is scheduled for Oct. 20 in U.S. Bankruptcy Court.

Hecker's bankruptcy attorney Barbara May said, "I just talked to Denny and he said he is not buying a darn thing."

May added that Hecker doesn't have any money but "there is no doubt that he could put [Rowan] in touch with someone who could help her get a car. But that doesn't mean that he would finance it or be doing anything underhanded at all."

She criticized Seaver for filing yet another subpoena request involving Hecker that is just an "inflammatory pleading" designed to "send everyone jumping."

Seaver is seeking copies of any loan applications or correspondence from Hecker or Rowan that may have been sent to the three Mercedes dealers: Feldmann Imports Inc. of Bloomington, Maplewood Imports, and Sears Imported Autos Inc. of Minnetonka.

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Calls seeking comment from officials at Feldmann and Sears were not returned Monday. The general manager at Maplewood Imports said he was not aware of the subpoena request and declined to comment further.

Seaver said such documents could provide information about the assets of Hecker's estate and aid in the collection of a prior judgment against Rowan in the amount of $425,000. The amount reflects gifts Rowan received from Hecker, which were ordered to be turned over to the court.

Seaver's latest subpoena request comes two weeks after he sued Hecker and Rowan for allegedly stealing $154,000 worth of insurance policy proceeds from the bankruptcy estate that Seaver is in charge of liquidating for creditors.

Seaver has sought an injunction barring the pair from using any more of the insurance money. Seaver submitted to the court copies of canceled checks and money orders showing spending that included $4,500 to the Lafayette Club, $8,000 in money orders to Rowan, $5,000 for a Harley-Davidson and more than $2,700 to Manny's Steakhouse and other restaurants.

Once confronted, Hecker turned over $45,000 to the court and gave Seaver a list of expenditures. But Seaver said $24,000 of the funds were not accounted for. According to the injunction request, Seaver asked Hecker where the funds were. "Hecker stated they were spent 'Here, there and everywhere.'"

The former auto tycoon, who once owned 26 dealerships and a national rental car chain, filed for bankruptcy in June 2009, claiming $767 million in debt and $18.5 million in assets. Hecker was indicted in March and last month pleaded guilty to one count of bankruptcy fraud and one count of conspiracy to defraud Chrysler Financial out of more than $13 million in loans.

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Rowan pleaded guilty to bank fraud and bankruptcy fraud in April and gave evidence against Hecker under a plea agreement to reduce her sentence.

Both Hecker and Rowan are expected to be sentenced early next year.

Dee DePass • 612-673-7725

Christi Rowan
Christi Rowan (Dml -/The Minnesota Star Tribune)
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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