Hecker Pleads Guilty to Conspiracy, Bankruptcy Fraud
MINNEAPOLIS - Former auto dealer Denny Hecker pleaded guilty to conspiracy and bankruptcy fraud in Minneapolis in a deal with prosecutors that dropped most of the charges against him. He could face up to 10 years in prison, Automotive News reported.
The deal ends suspense about what might happen at a trial set to start in mid-October.
“Denny feels this is acceptable,” his attorney, Brian Toder, said after the hearing. “On the one hand Denny wanted to fight this. But the risk of what could have happened was an unacceptable risk.”
In the courtroom, when Hecker was asked if he was pleased with his attorneys, he said: “They've explained this is the best case I can get.”
In court, Hecker admitted having committed all of the other crimes laid out in an earlier indictment, including bankruptcy fraud. He was originally charged with multiple counts that could have put him behind bars for decades.
At a press conference after the court hearing, U.S. prosecutors said that Hecker's attorney came to them on Friday asking to reach a plea deal. They worked out an agreement over the weekend.
“What this says is that the rules apply to everyone,” said Nicole Engisch, the lead prosecutor in the case. “And if you're going to use our bankruptcy system you have to play by the rules.”
Prosecutors had asked last week that Hecker be jailed for failing to abide by the conditions of his release that were set when he was indicted in February.
The deal calls for Hecker, 58, to be on house arrest until after Christmas, when he would report to federal prison, May said. Those details would need to be approved by U.S. District Court Judge Joan Ericksen. A date for his sentencing has not yet been scheduled.
Earlier today, one of his court-appointed lawyers, Barbara May, said, “Denny wants me to say that this is a business deal gone bad,” referring to the charges against him. “He feels bad that it got out of control and the business deal went sour.”
Once the owner of a network of auto dealerships and a large leasing company, Hecker filed for bankruptcy in June 2009, owing $767 million largely due to personal guarantees on business loans. The bankruptcy trustee handling his case quickly uncovered assets that Hecker had not reported.
Hecker chose not to fight those allegations in U.S. Bankruptcy Court and agreed that his debt would not be forgiven. He will be on the hook for any debt that remains after his assets are liquidated, a process that is expected to continue for at least another year.
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →