Hecker, Leach, Gustafson to be Sentenced in Feb.
Fallen auto mogul Denny Hecker's criminal case will wrap up next month when he and two codefendants-Steven Leach and James Gustafson-are sentenced for their roles in defrauding Chrysler Financial Services, LLC.
Hecker, who faces up to 10 years in prison for two fraud charges, will be sentenced on February 11. Leach, who faces up to five years in prison for one fraud charge, will be sentenced on February 8. Gustafson will be sentenced on February 3. The two charges he pleaded guilty to carry a maximum sentence of 25 years in prison, but prosecutors have set a guideline of four to 10 months because of the smaller role he played in the fraud.
Hecker was indicted in February 2010 on federal charges of conspiracy, fraud, and money laundering for defrauding lenders by forging documents to obtain loans. He later pleaded guilty to one count of bankruptcy fraud and one count related to conspiracy.
Hecker, who is currently in jail, earlier this month was denied his request to be released while he awaits his sentencing.
Leach was indicted with Hecker in February 2010 for wire fraud and conspiracy to commit wire fraud.
Leach was originally charged with 14 counts and faced 20 years in prison, but four of those counts were later dropped. Under his plea agreement, the government agreed to dismiss all charges against him in exchange for a new conspiracy charge that carries a maximum sentence of five years in prison.
Earlier this month, Leach filed court documents arguing that Hecker should also have to pay for “most” of the $16.2 million in restitution that he Leach to Chrysler.
Gustafson was charged by the U.S. Attorney's office in September and he pleaded guilty about a week later to one count of making a false statement to investigators and one count of mail fraud.
In addition to the criminal charges that he faces, Hecker filed for Chapter 7 bankruptcy as an individual in June 2009 and that case is far from over. After Hecker pleaded guilty in his criminal case, prosecutors filed wave after wave of documents accusing Hecker of shifty moves in his bankruptcy case, including allegations that he and his girlfriend collaborated to hide assets from the court.
In a more recent development, a hand-written letter from Hecker to U.S. Bankruptcy Judge Robert Kressel was filed with the court on Monday. In the letter, which is dated January 17, Hecker accuses bankruptcy trustee Randall Seaver, Seaver's lawyer Matthew Burton, and Hecker's former lawyer William Skolnick of lying to the court.
In the letter, Hecker wrote “I am not saying I am not guilty at all” and went into details about how Seaver and Skolnick lied multiple times “for their own self-serving benefit.”
It is unclear what Hecker's intention is in writing the letter since he has already pleaded guilty to bankruptcy fraud. A Tuesday morning phone call the Hecker's attorney seeking information about the letter was not immediately returned.
On Tuesday, Burton submitted a response to Hecker's letter saying the allegations that Burton or Seaver “misled or lied to the court” are false.