Updated: 06/19/2009 7:52 AM KSTP.com | Print Story
By: Becky Nahm & Nicole Muehlhausen

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Denny Hecker to file suit against GMAC amidst raids

Consumer hotline: 1-800-593-5000

 
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 FULL VIDEO: State Patrol news conference 

Must watch exclusive interview:
 
Part 1 
 
Part 2

Related stories:
 State Patrol hotline flooded with Hecker questions 

 
Felony fraud investigation launched against Hecker group

 
Trustee asks for Hecker's IGH lot to be sold 

 
HECKER: 'Today was like a relief'

 
Hecker charged with DWI 

 
Hecker injured in car accident

 Hecker faces new $7.2M lawsuit

 
Customers left with debt

 Court awards Chrysler $477M

 What to do if you have a car from Hecker 

 
Hecker statement forewarns of more closures 

 
Hecker closes another lot, customers out $ 

 
EMPLOYEES: Hecker hasn't paid, medical benefits gone

 
Hecker sells rental car business for $19M

 
Hecker's rental car company files for Ch. 11 bankruptcy

 
Customers confused on car service after closures

 
Hecker closes 6 dealerships

 Hecker files lawsuit against Chrysler Financial

Background:
 Read statement from GMAC
 View the bankruptcy documents
 View Hecker's credit counseling agreement
 View Hecker's income record
 Read full statement from Hecker

Denny Hecker's attorneys blame GMAC for the problems that led to a criminal investigation and could file suit against the company.

The Minnesota State Patrol announced a criminal investigation of Denny Hecker Auto Group Wednesday and searched six Hecker properties. The agency is looking into claims that Hecker dealerships failed to give customers their titles and license plates and also failed to pay off the liens on trade-ins. If true, the claims could lead to charges of felony motor vehicle fraud.

One of Hecker's corporate attorneys, Bill Morhman, said it's not Hecker's fault but GMAC. Morhman said General Motors took over several of Hecker's dealerships earlier this year.

"Let me very clear. When the vehicles were sold, Hecker did not receive money from transaction. GMAC did," Morhman explained.

Mohrman said Hecker's company has been urging GMAC to pay the funds since March.

GMAC released a statement late Wednesday, explaining that a 'trade-in vehicle transaction is between the dealer and the customer. With respect to liens on trade-in vehicles not being satisfied, GMAC is not a party to those transactions and the dealer, not GMAC, has the responsibility to satisfy all liens.'

The Department of Public Safety agreed with GMAC.

"The law states if you're a dealer collecting fees, it's the dealership's responsibility, not the creditor's responsibility (to transfer those fees to the state)," said DPS spokesman Andy Skoogman. "I think that's the heart of the issue here."

Hecker's personal attorney Marsh Halberg said Hecker's corporate attorneys are going to file a civil lawsuit against GMAC. Halberg said the civil suit will allege GMAC failed to live up to its agreement with Hecker's dealerships.


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