Judge refuses to spring Hecker from jail

Denny Hecker will remain in jail until he is sentenced early next year on the bankruptcy and fraud charges to which he has pleaded guilty, a federal judge ruled Friday. But the former auto mogul's request to rehire his private criminal attorney was granted by Chief U.S. District Judge Michael Davis.

Friday's court orders culminated a tumultuous week for Hecker, his attorneys and the judge. A hearing Monday that began on the issue of Hecker's legal representation ended with his abrupt incarceration after Davis became frustrated with Hecker's testimony. On Wednesday, a four-hour hearing focused on the bankrupt Hecker's $200,000 spending spree from June through September.

Davis' ruling on Friday squelched efforts by Hecker's public defenders to get him released for three days so he could help them find the receipts, bills and other accounting records to document the money that he'd spent.

Before leaving the chambers Friday, Davis turned and said: "I guess I won't be seeing you for a while, Mr. Hecker."

The 58-year-old Hecker faces up to 10 years in prison for fraud and conspiracy charges.

Davis demanded better answers from the bankrupt tycoon about how he secretly obtained and illegally spent $200,000 in insurance, 401(k) and bankruptcy settlement monies in just three months without informing the bankruptcy court or prosecutors.

Davis noted Hecker's "history of hiding and having money come forth that we don't know about" and scolded him about his "background and the things that you have done in the last year or two."

The only good news Hecker got this week is that he'll be allowed to rehire his former criminal defense attorney Bill Mauzy, who will be paid with a $55,000 retainer put up by Hecker's longtime friend and former business partner, Ralph Thomas.

Davis also announced that he was releasing Hecker's court-appointed attorneys, Brian Toder and Barbara May, from the case.

Prosecutors have demanded that Hecker repay the government for his public defense costs, which are estimated to run about $200,000. But Davis said Friday that he would first secure a detailed accounting of Hecker's spending and cash situation and decide later just how much the government would be repaid.

Davis also ruled that the FBI would retain $11,000 in prepaid American Express debit cards that Hecker finally turned over to prosecutors on Wednesday.

Speaking from the bench, Davis told Hecker that he would be held accountable for every dime the government has spent on his behalf. He said Hecker would have to provide a weekly accounting "of every penny" he spent from June until his sentencing, which is expected to take place early next year.

Before being led out of the courtroom, Hecker hugged all three of his attorneys.

The scene was calmer than on Wednesday, when Hecker continuously winked and nodded assuredly to his stricken girlfriend Christi Rowan and his adult daughter Kelly, who waved and said, "I love you" as he was handcuffed and taken away by U.S. marshals.

In an interview with the Star Tribune, Mauzy said Friday that Hecker "in effect started his prison sentence on Monday. ... He knows that he is facing a lengthy prison sentence and he also knows that he has [essentially] begun to serve that now."

Mauzy added that he was pleased that he could start work on Hecker's sentencing hearing: "There is a lot of work that can be done to make a compelling presentation ... he should receive less than 10 years in prison."

While Mauzy insisted that his client is in good spirits, Toder and May acknowledged that adjusting to the abrupt change from tycoon to convict will be difficult.

Hecker pleaded guilty to fraud charges last month for hiding assets from the bankruptcy trustee and duping Chrysler Financial out of $13.8 million in loans. According to court records, Hecker still owes more than $200 million to hundreds of creditors.