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Posted at: 07/08/2009 12:53 PM LAWSUIT: Hecker Forged Documents for Loans
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. |
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