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Updated: 06/24/2009 8:14 AM KSTP.com |
Civil Complaint Filed Against Hecker's Companies
The legal problems for Denny Hecker continue to mount. A civil complaint filed Tuesday accuses Hecker of shuffling money between several of his companies - some of which are now seeking bankrupty protection. A U.S.-Bankruptcy-Court-appointed trustee filed the complaint. It claims Hecker had his bankrupt companies make payments to his other holdings in order to "hinder, delay, and defraud" the companies' creditors. The civil complaint lists eight counts including civil conspiracy and theft. The civil complaint claims the bankrupt companies paid more than $148 million to Hecker and his other holdings in 2008--the year before the companies declared bankruptcy. The civil complaint alleges that often no services or products were provided in exchange for the payments. The trustee is asking for the court to require Hecker to preserve and maintain all of his books and records, correspondence, computer records, and documents. The complaint names corporations and LLCs. It does not hold any individual personally responsible. On June 17, Minnesota State Patrol troopers searched the Hecker Automotive Group corporate headquarters at 500 Ford Road in St. Louis Park. Law enforcement agents also searched three homes-two in Medina and one in Cross Lake-owned by Hecker, as well as Southview Chevrolet in Inver Grove Heights and the now-closed Stillwater GMC-Cadillac in Oak Park Heights. State Patrol Chief Col. Mark Dunaski said they were looking for electronic and hard copy records of 'purchase agreements, sales contracts, and title transfers.' The warrants, obtained by 5 EYEWITNESS NEWS, were issued on June 11, and signed by Hennepin County Judge Deborah Hedlund. The State Patrol said they first started receiving complaints from people in 15 counties about Hecker dealerships months ago, and the raids triggered complaints from additional customers. Some customers say the dealerships never paid the required tax, title, or insurance for their new car. Others claim Hecker's dealerships never paid off the lien on their trade-in vehicles, and some customers complain they're out both ways. Hecker's attorneys say GMAC is responsible for the issues that sparked the complaints. GMAC says it is not. Hecker is suing GMAC. The 56-year-old filed for personal bankruptcy protection earlier this month. According to court papers, he said he owes up to $1 billion to 1,000 creditors. He used to be one of Minnesota's largest car dealers, but he's closed or sold 25 of his 26 dealerships. Related stories: |
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