Feds: Send Hecker to Jail Now
Travel restrictions, a curfew, and a GPS monitor are apparently insufficient for keeping Denny Hecker grounded as he waits for his October trial. The U.S. Attorney's Office wants him locked up now.
Hecker should be detained because he “has been committing federal crimes while on release, including as recently as July 2010,” according to documents filed Thursday in U.S. District Court in Minnesota.
While awaiting trial, Hecker has committed wire fraud and bankruptcy fraud, and he has defied court orders that require him to report any changes to his income or assets, according to court documents. Prosecutors described Hecker's recent actions as “blatant violations of federal law.”
For example, Hecker informed the court in July of his assets, including several life insurance policies. He was allowed by law to maintain one of the policies, but the others were turned over to the bankruptcy estate.
Hecker then allegedly received a check for $30,000 from one of the policies that he had forfeited-but rather than submitting it to the estate, he deposited the funds into a newly opened bank account, from which he then wrote checks to the Lafayette Club and the Wayzata Country Club, among other businesses.
When the case's trustee, Randall Seaver, discovered the money and demanded repayment, Hecker turned over the funds-in effect admitting that they were not his property to begin with, according to the court documents.
Hecker also allegedly received four other checks from the insurance company-totaling $124,000-which he has not yet turned over to the bankruptcy estate.
Hecker also allegedly committed wire fraud by falsely reporting his income in order to lease a $20,000 Kia Soul for $329.50 per month. Hecker leased the vehicle through New Dimension Advisors, LLC-a shell company he formed after filing for bankruptcy. Hecker claims the business is a “consulting” operation, but prosecutors contend that it is “nothing more than a mechanism by which the defendant transfers money through bank accounts to pay his personal expenses.”
Hecker told Kia that his income related to New Dimension Advisors ranges from $5,000 to $40,000 per month. According to prosecutors, Hecker either lied to Kia or he's concealing his income from the court.
“This defendant was a serious flight risk in February,” prosecutors wrote. “The situation has worsened, particularly as trial in this matter looms only a few weeks away, based on the defendant's acts demonstrating his danger to the community through his ongoing fraud.”
A hearing regarding Thursday's motion will be held on Wednesday before U.S. Magistrate Judge Susan Richard Nelson.
Hecker has been indicted on 26 felony charges relating to fraud, conspiracy, and money laundering, and faces a maximum sentence of 20 years in prison for each count.
A judge on Monday rejected Hecker's requests that two of the charges against him be dropped.
The government accuses Hecker of defrauding lenders by forging documents to obtain more than $100 million in loans. He has pleaded not guilty to all charges, and his criminal trial is scheduled to start on October 18.