Hecker draws criminal probe from State Patrol
CROSSLAKE - The State Patrol said it has launched a criminal investigation into the bankrupt Denny Hecker Automotive Group, dealing a fresh blow Wednesday to the man who was one of Minnesota's largest car dealers until the economic downturn brought down his empire.
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Included in the investigation was a search of Hecker's $12 million properties along the southern shore of Cross Lake in the Brainerd lakes area.
The chief of the State Patrol, Col. Mark Dunaski, told reporters during a news conference in the Minneapolis suburb of Golden Valley that dozens of customers in 15 Minnesota counties have reported that they never received the titles or license plates for the vehicles they bought. He said they've also complained that they traded in vehicles only to learn later from their old lenders that the liens were never paid off.
All was quiet Wednesday afternoon along the lakeshore of Denny Hecker's house on Cross Lake near the city of Crosslake in northern Crow Wing County. Earlier Wednesday the $12 million property owned by Hecker was searched by law enforcement officials as part of a criminal investigation into the bankrupt Denny Hecker Automotive Group. Brainerd Dispatch/Kelly Humphrey » Purchase reprints of this photo.
Dunaski said that investigators with the State Patrol, the Bureau of Criminal Apprehension and other Minnesota law enforcement agencies executed search warrants at six locations across the state today. Investigators conducted searches at the Denny Hecker Automotive Group corporate headquarters in St. Louis Park, three homes owned by Hecker - two in Medina and one on Cross Lake in Ideal Township - and two Denny Hecker Automotive Group dealerships, Southview Chevrolet in Inver Grove Heights and Stillwater GMC Cadillac in Oak Park Heights. The dealership in Oak Park Heights is no longer operating.
Capt. Mark Jonassen of the Brainerd District of the State Patrol said his troopers participated in the search of Hecker's Crosslake home but he declined to comment further on the investigation, directing questions to the Department of Public Safety.
Hecker has not been charged and does not face imminent arrest, Dunaski said.
Dunaski also said it was far too early to estimate how much tax money was not paid to the state.
Defense attorney Marsh Halberg said Hecker was "a little shell-shocked" by the latest developments.
"This comes as a surprise to everyone involved, for Denny and the corporation," Halberg said.
Halberg said Hecker was at his headquarters and that he and his staff were fully cooperating with the search, supplying computer passwords and handing over files.
Law enforcement officials checked cars Wednesday during a raid at Denny Hecker's corporate headquarters in St. Louis Park. The State Patrol said it has launched a criminal investigation into the bankrupt Denny Hecker Automotive Group. Associated Press
The State Patrol opened a special hot line to field calls from consumers: 800-593-5000.
Dunaski explained that Minnesota requires auto dealers to remit the 6.5 percent sales tax on vehicle sales and other fees to the state, and to remove liens on vehicles they take in trade. Failure to do either is a felony, he said.
In some cases, he said, customers ran into trouble with titles and liens on both the vehicles they bought and the ones they traded in.
Dunaski said the state started receiving complaints six or seven months ago and that the pace had picked up recently.
Hecker filed for personal bankruptcy protection last week, saying he owes up to $1 billion to up to 1,000 creditors. He has listed 95 creditors in court documents, including auto finance firms, banks, attorneys, and a business partner. Brainerd area creditors listed in the documents include C and C Boat Works in Crosslake, Crosslake Property Solutions, Deerwood Bank in Brainerd, Riverwood Bank/First Federal Savings Bank in Crosslake and Waste Partners in Pine River.
Hecker has shuttered or sold 25 of his 26 dealerships, with his only remaining dealership being Toyota/Scion in Baxter. He's also been sued by business arms of several automakers.
Before his business started to fall apart late last year, Hecker's face was everywhere in the Twin Cities - in newspaper ads and on bus billboards and TV - urging customers to visit his dealerships for good service. He used to claim $6.8 billion worth of annual auto sales and service.
In April, prosecutors charged him with misdemeanor counts of driving while intoxicated and careless driving. A blood test found powerful prescription drugs in his system after his Range Rover struck a utility pole in December. The drugs included narcotic painkillers, a stimulant, an anti-anxiety drug and insomnia medication. Halberg said in April that the wreck was an accident, and not related to the medications.