Bankruptcy judge: Jewels to Tamitha, debts to Denny Hecker

A bankruptcy judge on Wednesday let Denny Hecker's ex-wife Tamitha keep some assets including $189,000 in cash, two cars and nearly $1 million worth of jewelry.

At the same hearing, U.S. Bankruptcy Judge Robert Kressel approved a settlement that forgives none of Hecker's $767 million in debts to creditors. As part of the deal, Hecker's girlfriend, Christi Rowan, is allowed to keep the $30,000 German shepherd that Hecker gave her as a gift.

Hecker's decision to give up his fight for bankruptcy protection means he will likely be in debt for the rest of his life and have a hard time ever securing credit again.

Dressed in a gray suit and tie, Hecker had been sitting quietly in court with his hands folded, head down and eyes looking up at the judge. The electronic monitoring device that he is required to wear because of charges he faces in criminal federal court was visible on his right ankle as he rose and approached Kressel with his attorney, John Neve, standing by his side.

Before agreeing to the settlement, Kressel described it as "a very good deal for the trustee" and asked Hecker if he fully understood it.

Hecker replied, "Yes, I do."

Hecker filed for bankruptcy protection last June, claiming $767 million in debt and $18.5 million in assets. Bankruptcy trustee Randy Seaver will continue to liquidate the rest of Hecker's estate. Creditors will be paid after all items are liquidated. Exactly how much they will receive remains unclear.

Hecker, who was once Minnesota's largest auto dealer, is separately facing 25 charges in federal criminal court for alleged wire fraud, bankruptcy fraud, conspiracy and money laundering. He was indicted on the charges in February and March and, if convicted, could face up to 20 years in prison on each count.

He has pleaded not guilty to all charges. His next court hearing in that case is scheduled for June, and the trial is set for October.

Hecker spent three days in jail last week for failing to turn over financial information to a state judge handling two of Hecker's alimony cases.

Hennepin County District Judge Jay Quam said that he sent Hecker to jail to "motivate" him to comply with a court order. Hecker has failed to disclose where he came up with the $125,000 he used to replenish a 401(k) retirement account he liquidated without Tamitha's permission.

Hecker's new attorney asked the court this week if such information could be provided to the court confidentially without the donor's name being made public.

In bankruptcy court Wednesday, the trustee's attorney, Matt Burton, told the court that Hecker has not paid the full alimony he owes. Hecker remains three months behind in payments to his fourth wife, Tamitha Hecker, and six months behind in payments to his second wife, Sandra Hecker, Burton told the judge.

Disappearing lawyers

Hecker insists he is broke. His criminal defense attorney, Bill Mauzy, asked to withdraw as counsel last week because of Hecker's lack of funds. The court has been notified that Hecker will need a public defender, Mauzy said.

This week, Hecker's original bankruptcy attorney, Clinton Cutler of Fredrikson & Byron, asked to withdraw because of nonpayment.

Hecker's other bankruptcy attorney, Bill Skolnick, was in bankruptcy court Wednesday with his own attorney. Skolnick told the judge that he had been terminated by Hecker and was formally withdrawing from the case.

Last month, Seaver and Burton accused Skolnick of misleading the bankruptcy court about the origin of a $75,000 check Skolnick wrote on behalf of Hecker. The funds were used to settle a deed for Hecker's Medina house.

Dee DePass • 612-673-7725