Hecker Faces New Allegations in Bankruptcy Case
Fallen auto mogul Denny Hecker may have pleaded guilty to two criminal counts earlier this month, but the court documents against him continue to pile up.
On Wednesday, bankruptcy trustee Randall Seaver filed a complaint against Hecker and his girlfriend, Christi Rowan, alleging that the two have collaborated to hide assets from the court.
According to the complaint, Seaver discovered in July that Hecker had deposited an insurance check for $30,000 into an account at 21st Century Bank. After opening the account, the bank “became concerned,” froze the account, and returned the funds to Hecker.
Hecker had allegedly attempted to pay personal expenses with the bank account prior to it being frozen. And when Hecker received a cashier check from the bank totaling $30,000 in June, he quickly cashed it.
When the trustee learned that Hecker had been using a check-cashing service called Your Exchange, he requested information from the company-soon learning that Hecker and Rowan had cashed four checks from insurance policies in addition to the $30,000 check.
The four checks-which Seaver says belong to the bankruptcy estate-totaled about $123,000.
“Upon information and belief, Hecker converted the Prudential check proceeds to cash, Western Union money orders, and a preloaded Mastercard,” the complaint alleges. “Hecker thereafter provided Western Union money orders to Rowan. Hecker has converted assets of this bankruptcy estate. Rowan has assisted Hecker in this endeavor.”
Based on financial records obtained by the trustee, Hecker had more than $120,000 in his possession from June to August-all of which allegedly belonged to the bankruptcy estate. This sum is particularly striking, considering that a public defender was appointed to represent Hecker in April-due primarily to his claims that he was broke.
Seaver's complaint seeks an order demanding Hecker and Rowan to turn over all of the insurance checks and proceeds that are part of the bankruptcy estate.
It's unclear whether this development will have an impact on Hecker's recent guilty pleas, in which he admitted to two criminal charges-one count of bankruptcy fraud and one related to conspiracy. He faces up to 10 years in prison on those charges.
In exchange for the guilty pleas, prosecutors agreed to drop the other criminal charges against Hecker-he faced 26 in all-including other bankruptcy fraud charges.