MINNEAPOLIS - Denny Hecker's defense strategy: blame Chrysler Financial. That's the picture Hecker's lawyer painted during a news conference Thursday after Hecker pleaded not guilty to federal criminal charges that potentially could put the former auto mogul in prison for the rest of his life, reported the St. Paul Pioneer Press.

Speaking outside the federal courthouse in Minneapolis after his hearing, a weary-looking Hecker, 57, said that "for many months, I've had to listen to and read comments that just weren't true. This has been painful for me and my family."

The indictment, he said, is the start of the full story's airing, which will play out in court.

The real story, his lawyer Bill Mauzy told the media, is that Chrysler Financial concocted a fraud claim from what is really just a "business dispute." After 25 years, the successful relationship Hecker had with Chrysler Financial came to an end, Mauzy said, when the lender found itself in financial straits and decided to come after Hecker because he owed them the most money.

Although Hecker remained free on a $25,000 unsecured bond, authorities will track him with an electronic monitoring device placed on his ankle after Thursday's hearing.

He surrendered his passport, can't travel outside Minnesota unless it is court-approved and will have a curfew, the details of which were not made public. Prosecutors also asked that Hecker continue mental health counseling. He does not have to pay the $25,000 bond unless he violates these conditions.

A federal grand jury indicted Hecker and a lieutenant on multiple fraud charges Wednesday in what prosecutors say was a scheme to defraud lenders of millions of dollars.

Steven J. Leach, a former Hecker executive charged in the alleged scheme, also pleaded not guilty Thursday and received the standard conditions for release on a $25,000 unsecured bond, including surrender of his passport and travel restrictions.

Hecker and Leach each were charged with one count of conspiracy to commit wire fraud and five counts of wire fraud. Hecker also was charged with one count of money laundering.

If convicted, Hecker and Leach each face a maximum penalty of 20 years on each fraud count; Hecker faces an additional 10 years on the money-laundering charge.

Their next appearance in U.S. District Court in Minneapolis will be April 7. A trial date has not been set.

The indictment centers on allegations, first made public last summer by Chrysler Financial, that in the fall of 2007, Hecker and Leach forged a document to obtain better financing from Chrysler Financial on a deal to buy vehicles from Hyundai.

The indictment also accuses Hecker of pocketing proceeds from vehicle sales, including the tax, title and license fees that were owed the state of Minnesota, and of transferring $500,000 of the fraudulently obtained funds into his personal bank account.

Hecker's empire of car dealerships, leasing company, car rental companies and other businesses came crashing down over the past year and a half, and he filed for personal bankruptcy June 4, owing $767 million.

Chrysler Financial, his largest lender, first raised allegations it was defrauded due to a forged document in a lawsuit the company filed against Hecker in bankruptcy court in early July. A few weeks later, federal authorities raided Hecker's St. Louis Park headquarters, seeking evidence for the investigation that led to Wednesday's indictment.

Leach, 54, was president of Hecker's Rosedale Leasing, a company that bought cars from manufacturers and leased them to rental-car companies. Leach resigned in December 2007 to "distance himself from the fraud," according to the indictment.