In yet another lawsuit against former auto mogul Denny Hecker, State Farm Mutual Automobile Insurance Co. has accused his Advantage Rent-A-Car and Southwest-Tex Leasing subsidiary of inflating auto repair bills on hundreds of rental car claims.
State Farm is demanding more than $1 million in damages for "hundreds of fraudulent claims." The suit, filed in September in an Arizona federal court, accuses Hecker of submitting bills from third party auto-accident appraisers and body shops that failed to show Hecker's industry discounts on rates and prices. State Farm also accuses Hecker of selling damaged cars for inflated prices and yet billing State Farm for total losses.
Southwest-Tex has denied the allegations, saying the complaint was vague, ambiguous and overbroad.
Advantage Rent A Car, which had controlled a nationwide rental fleet of 15,000 vehicles, filed for bankruptcy protection in December. A chunk of the company has been sold to Hertz and the remainder is in the final stages of being liquidated.
Hecker has shut or sold 25 of 26 dealerships in addition to his leasing fleet and mortgage operations. He is being investigated by the state for possible sales tax evasion. Last month, a U.S. Bankruptcy trustee accused Advantage and five other Hecker companies of civil fraud for allegedly diverting up to $148 million in funds prior to filing for bankruptcy.
Dee DePass • 612-673-7725
