Stay Curious. Stay Connected.
MailNewsletters♡Donate Now
Sign up
*Password must be at least 8 characters and contain one uppercase letter, one lowercase letter, one number and one symbol.
Already have an account?
By submitting, you consent that you are at least 18 years of age and to receive information about MPR's or APMG entities' programs and offerings. The personally identifying information you provide will not be sold, shared, or used for purposes other than to communicate with you about MPR, APMG entities, and its sponsors. You may opt-out at any time clicking the unsubscribe link at the bottom of any email communication. View our Privacy Policy.
Sign in to your profile
Forgot Password?
New to MPR News?
Welcome back
to news
for you
Reset Password

Enter the username on file and we'll send you a code to reset your password.

Still require assistance or not sure what your User Name is?
Welcome back
to news
for you
Email Verification

A verification code has been emailed to

Still awaiting the code?
Tim Nelson and Madeleine Baran
St. Paul, Minn.

Complaint filed against Denny Hecker alleges $110M fraud

Go Deeper.

Create an account or log in to save stories.

Log inCreate a free Account

Like this?

Thanks for liking this story! We have added it to a list of your favorite stories.

Show me!

The legal problems of Denny Hecker continued to mount Thursday, as a U.S. bankruptcy trustee filed a civil complaint accusing the auto mogul of civil conspiracy, theft and unjust enrichment in the operations of several auto leasing businesses.

The complaint alleges that Hecker created a complicated scheme to funnel over $110 million from his Advantage Rent A Car and Southwest-Tex auto leasing businesses into his other businesses.

"The payments were made with the actual intent to hinder, delay or defraud creditors of the debtors," the complaint says.

The complaint, filed by U.S. Trustee Brian Leonard, claims that Hecker and several affiliates forced Southwest-Tex and other companies to pay inflated lease rates. The money, the complaint alleges, was then funneled into Hecker's other businesses.

As a result, Advantage Rent A Car and Southwest-Tex did not have enough money to cover their expenses, the complaint claims. Both companies filed for bankruptcy protection in December.

Hecker's attorney, Bill Mohrman, said that such claims are routine in bankruptcy. He said that the rental companies couldn't purchase vehicles from car makers, and bought them instead from Hecker dealers.

"It is neither surprising or unusual that Advantage paid these companies millions of dollars in the one year prior to Advantage filing bankruptcy," he said. "In fact, Advantage still owes these companies more than $60 million in missed lease payments."

The Minnesota State Patrol announced last week that it has begun a criminal investigation against Hecker, alleging that he failed to pay state sales tax on license plates, registrations, titles and other fees.

Hecker responded by filing a lawsuit against GMAC, arguing that the auto lender, not the individual dealerships, bore responsibility for making payments to the state.

In May, the IRS placed a lien on all property owned by Hecker and his wife, charging that the couple owe at least $2.6 million in income taxes from 2003 and 2005. The lien ensures that the IRS will receive payment if Hecker sells any real estate.

Hecker filed for Chapter 7 bankruptcy this month, saying he owed up to $1 billion to as many as 1,000 creditors, including automakers, lenders, business partners and former employees.