Denny Hecker to Plead Guilty to Two Counts
Denny Hecker will plead guilty on Tuesday to two criminal charges-one count of bankruptcy fraud and one related to conspiracy-according to Hecker's attorney, Brian Toder.
A notice was filed with the court Tuesday morning, indicating that Hecker will change his plea at a 2 p.m. hearing in Minneapolis before U.S. Magistrate Judge Joan N. Ericksen.
The filing does not indicate details of the pleas, but Toder said in a Tuesday phone interview that prosecutors have agreed to drop all of the other criminal charges against Hecker in exchange for his guilty pleas. Hecker had previously pleaded not guilty to each of the 26 criminal charges that he faces.
Each of the two counts to which Hecker will plead guilty carry a maximum prison sentence of five years.
Last week, Ericksen denied Hecker's request that two of the 26 charges against him be dropped.
Then, on Thursday, federal prosecutors filed a motion asking the court to detain Hecker until his criminal trial, which is scheduled to begin October 18.
Tuesday's change of plea comes one day before a scheduled hearing regarding the prosecutors' motion, in which they said that Hecker “has been committing federal crimes while on release, including as recently as July 2010.”
Hecker filed for Chapter 7 bankruptcy as an individual in June 2009. He was later charged with bankruptcy fraud related to false declaration and pertaining to transfer and concealment of funds.
Hecker has been indicted on 26 felony charges relating to fraud, conspiracy, money laundering, and bankruptcy fraud. The government accuses Hecker of defrauding lenders by forging documents to obtain more than $100 million in loans.