J.P. Morgan Chase asked a bankruptcy judge this week for permission to seize Denny Hecker's brokerage account because the former auto dealer defaulted on more than $3 million in loans. As of March 4, Hecker had $142,499 in the account, which until recently had been forgotten by the bank because of "an internal oversight." Chase claims Hecker owes it $3 million and that he signed documents saying all savings and investment accounts would serve as security should he default.
J.P. Morgan seeks dibs on Denny Hecker's brokerage account
The financial firm says it had overlooked the $142,000 account. Now it wants the money because the auto mogul defaulted on a loan.
March 27, 2010 at 4:48AM
A hearing on the matter will be held April 8, one day after U.S. Bankruptcy Judge Robert Kressel reviews a motion to hold Hecker in contempt of court for failing to comply with a records request. Kressel also will review a settlement agreement in which Hecker agreed to completely give up his battle for debt forgiveness. That agreement was reached after the trustee in the case accused Hecker of repeatedly hiding assets from the court.
Hecker, who has denied wrongdoing, once owned Advantage Rent a Car, lease and fleet firms and 26 dealerships with an estimated $6.8 billion in annual revenue. He filed for bankruptcy in June, claiming $767 million in debt and $18.5 million in assets. He is now facing federal criminal charges of bankruptcy fraud, wire fraud, conspiracy and money laundering. Hecker has pleaded not guilty. A hearing in his criminal case is set for April 7.
In the meantime, Hecker said he is upset that courts didn't dig into the assets held by his former wife Tamitha. Earlier this month, he sent a letter to the bankruptcy trustee outlining places where she allegedly hid assets. Tamitha Hecker's attorney Becky Toevs Rooney denied those allegations, saying the trustee investigated such claims and "found them baseless."
The trustee settled with Tamitha Hecker last week, letting her keep her jewelry, Mini Cooper, Cadillac Escalade, $10,000 in property liquidation proceeds and the contents of a safety deposit box. The rest of the couple's property is being liquidated, and proceeds will go to Denny Hecker's creditors.
The state judge handling Hecker divorce issues has threatened to throw Denny Hecker in jail for 90 days for contempt unless he can show where he recently secured $125,000 to replenish a 401(k) plan he cashed out. He is behind in alimony payments to his second wife, Sandra, and fourth wife, Tamitha.
Dee DePass • 612-673-7725
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