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Posted at: 07/08/2009 12:53 PM
By: Nicole Muehlhausen, Web Producer

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LAWSUIT: Hecker Forged Documents for Loans


Must watch exclusive interview:
 
Part 1 
 
Part 2

Background:
 
Read GMAC's statement

 Read earlier GMAC statement

 View the bankruptcy documents

 View Hecker's credit counseling agreement

 View Hecker's income record

 Read full statement from Hecker

Related stories:
 
Court Documents Show Hecker Owes $766M
 Civil Complaint Filed Against Hecker's Companies
 
Hecker to file suit against GMAC amidst raids 
 
State Patrol hotline flooded with Hecker questions 
 
Felony fraud investigation launched against Hecker group
 
Trustee asks for Hecker's IGH lot to be sold 
 
HECKER: 'Today was like a relief'
 
Hecker charged with DWI 
 
Hecker injured in car accident
 Hecker faces new $7.2M lawsuit
 
Customers left with debt
 Court awards Chrysler $477M
 What to do if you have a car from Hecker 
 
Hecker statement forewarns of more closures 
 
Hecker closes another lot, customers out $ 
 
EMPLOYEES: Hecker hasn't paid, medical benefits gone
 
Hecker sells rental car business for $19M
 Hecker's rental car company files for Ch. 11 bankruptcy
 
Customers confused on car service after closures
 Hecker closes 6 dealerships
 Hecker files lawsuit against Chrysler Financial

A new lawsuit was filed against Denny Hecker Wednesday, accusing the former auto mogul of fraud.

The suit, filed by Chrysler Financial Services, is asking a judge to order some of Hecker’s multi-million dollar debts to not be wiped away by his personal bankruptcy protection.

"Hecker used false pretenses, made false representations, committed fraud, defalcation, and embezzlement, and inflicted willful and malicious injury to Chrysler Financial and it’s property in order to obtain money," the suit reads.

In it, the lawsuit states Hecker forged and doctored documents to obtain a $65 million loan from Chrysler to purchase over 5,000 vehicles from Hyundai. In support of his request for financing, Chrysler claims Hecker personally presented two letters supposedly from Hyundai—however, the lawsuit claims they were forged.

Chrysler officials say they later discovered that Hyundai offered to sell Hecker 605 vehicles, not 5,000.

On April 27, Chrysler won a nearly $477 million judgment against Hecker in Hennepin County District Court in a different lawsuit.

After seizing certain accounts from Hecker, Chrysler says Hecker still owes the company nearly $365 million. Of that amount, Chrysler claims $83 million was given to Hecker ‘through the use of false pretenses [and] false representations’ from transactions such as the Hyundai incident.

Wednesday's lawsuit is yet another added to the growing list of legal problems for the 56-year-old.

In June, a civil complaint was filed against Hecker, claiming he was shuffling money between several of his companies in order to defraud his creditors.

On June 17, Minnesota State Patrol troopers searched the Hecker Automotive Group corporate headquarters at 500 Ford Road in St. Louis Park. Law enforcement agents also searched three homes-two in Medina and one in Cross Lake-owned by Hecker, as well as Southview Chevrolet in Inver Grove Heights and the now-closed Stillwater GMC-Cadillac in Oak Park Heights.

State Patrol Chief Col. Mark Dunaski said they were looking for electronic and hard copy records of 'purchase agreements, sales contracts, and title transfers.'

The warrants, obtained by 5 EYEWITNESS NEWS, were issued on June 11, and signed by Hennepin County Judge Deborah Hedlund.

The State Patrol said they first started receiving complaints from people in 15 counties about Hecker dealerships months ago, and the raids triggered complaints from additional customers.

Some customers say the dealerships never paid the required tax, title, or insurance for their new car. Others claim Hecker's dealerships never paid off the lien on their trade-in vehicles, and some customers complain they're out both ways.

Hecker's attorneys say GMAC is responsible for the issues that sparked the complaints. GMAC says it is not. Hecker is suing GMAC.

Hecker filed for personal bankruptcy protection earlier in June. According to court papers, he said he owes up to $1 billion to 1,000 creditors.

He used to be one of Minnesota's largest car dealers, but he's closed or sold 25 of his 26 dealerships.