A Twin Cities real estate agent and former business partner of disgraced Minnesota businessman Denny Hecker filed for Chapter 7 bankruptcy on Friday.
Jeffrey Holmers, in a filing with Minnesota’s U.S. Bankruptcy Court, listed $9,603 in assets and more than $8.4 million in liabilities.
Reached by phone Monday, Holmers said his financial situation stems from business dealings with Hecker, who was sentenced to 10 years in prison in 2011 for defrauding lenders while operating a dynasty of auto dealerships.
The men formed Denny Hecker & Holmers Real Estate Company in 2004, but the business went dark in 2007 amid the real estate downturn. Holmers said he was unaware of the criminal activities Hecker conducted through his auto empire, which was distinct from the real estate business, and Holmers described himself as a victim of the fallout of Hecker’s bankruptcy and criminal actions.
“A lot of people were hurt by Denny Hecker, and unfortunately I was one of them,” he said.
Holmers currently serves as a real estate agent for Coon Rapids-based Keller Williams Classic Realty. The bankruptcy filing indicates that Holmers is the “surety” for several now-defunct businesses, while he still owns the Holmers Group brand and Loch Development, LLC, through which his transactions for Keller Williams are run.
The largest creditor listed in the bankruptcy filing is private equity firm Oak Ridge Capital, whose claim exceeds $3.3 million. A St. Michael-based contracting firm and Minneapolis-based LCF Funding I, LLC, meanwhile, are each owed more than $1 million, according to the filing.
A 2009 Star Tribune story indicates that Hecker’s business dealings at one time also extended into the mortgage industry, and he operated an entity called Denny Hecker's Home Loans, LLC—but the Minnesota Department of Commerce revoked Hecker’s mortgage license due to “a host of violations.”