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Hecker Loses Bankruptcy Claim Faces New Criminal Charges

Posted By admin || 29-Jul-2010

Hecker Loses Bankruptcy Claim Faces New Criminal ChargesDenny Hecker, former auto tycoon, lost his claim to a $1 million consulting fee in bankruptcy court and now faces new criminal charges in a fresh federal indictment.  Bankruptcy Judge Robert Kressel dissolved Hecker's interest in a consulting deal with Midwest Motors after the company sought to end  the relationship with Hecker  because of the bad publicity surrounded the embroiled former auto tycoon.  The bankruptcy judge said that Midwest Motors had good cause to terminate the consulting agreement because of bad publicity.

Bankruptcy trustee Randy Seaver has objected to the fee for nearly a year, saying the money should go to Hecker's creditors. Seaver recently reached a settlement in which Midwest Motors agreed to pay $65,000 to the trustee and about $425,000 to creditors Chrysler Financial and Toyota Financial Savings Bank. Hecker had objected.

But the loss of the consulting fee in bankruptcy is only the beginning of Hecker's financial and legal woes.  The former auto tycoon is now facing additional criminal charges including 26 conspiracy, bankruptcy and wire fraud charges stemming from accusations that he orchestrated various schemes to defraud Chrysler Financial and other lenders out of hundreds of millions of dollar in auto loans.  The new indictment accuses Hecker of illegally concealing and transferring money prior to filing bankruptcy. According to the indictment, Hecker failed to disclose the purchase of $10,425 in gift cards.

The new criminal charge is just one more thing added to the long list of legal accusations added to Hecker's criminal case.  If convicted of the bankruptcy fraud charges, Hecker could face up to ten years in prison.

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