Marshals may raid Denny Hecker's Medina home

After months of being put off, the bankruptcy attorney handling Denny Hecker's liquidation finally gained access to the former car dealer's Medina home Monday and tagged valuable items for auction.

Matthew Burton, who is the bankruptcy trustee's attorney, was accompanied by an auctioneer and Hecker's criminal defense attorney Brian Toder. The meeting, at which neither Hecker nor Rowan was present, signaled a new spirit of cooperation that was motivated by an unusual court order issued Monday morning.

That's when U.S. Bankruptcy Judge Robert Kressel authorized federal marshals to help Burton gain access to the Medina home if necessary.

Burton requested the marshals after several attempts to gain access to the house were blocked by Hecker's girlfriend Christi Rowan, who also lives in the home with her two children. In February, Rowan was ordered to turn over $425,000 worth of gifts and cash, but to date has only turned over a fur coat, a ring and watch, Burton said.

The marshals weren't needed Monday, however.

Outside of Hecker's spacious beige brick-and-stone house, which sits on a small lake and sports a three-car garage, Toder told reporters that all matters dealing with Hecker and Rowan's personal property are expected to be resolved by Wednesday. However he declined to say which the day the moving vans would arrive.

Personal property in the $1.9 million house is now owned by the bankruptcy estate. It was not immediately clear what was tagged for auction. Toder said the house has furniture, pingpong and pool tables, TVs, memorabilia and art. A canoe and cedar playground set could be seen from the street. Court records said a tanning bed was in the house and noted that Rowan and Hecker were ordered to forfeit whatever equity remained in two Range Rovers leased or bought in 2008 and 2009.

Earlier, Burton told the judge that Medina police were unable to help because they don't have jurisdiction to act on federal court orders.

Kressel said he reluctantly agreed to the marshals' intervention, but hoped the situation could be resolved amicably. He said marshals might be "necessary" in light of reports that he and Burton received from various people claiming to have bought personal property from Rowan.

Kressel expressed concern that armed federal marshals might scare the children of Hecker and Rowan. "I do not relish the picture of you and the marshals showing up and banging the door down," Kressel said. "I'd like this to be done when the children are not there. ... I don't want the children scared and a dog shot."

Kressel said he was worried about the presence of Rowan's specially trained guard dog, a gift from Hecker that cost $30,000. Burton said that he, too, had concerns about the dog and that if necessary he would make arrangements to be accompanied by an expert animal handler.

In his order, Kressel specifically barred Rowan from removing any items from the house. Although marshals were not present Monday, Kressel's order will stay put. Burton still needs to return to the home to make sure that the valuables are removed and auctioned off so that proceeds can be distributed to Hecker's 104 creditors.

Hecker filed for bankruptcy in June, claiming $767 million in debt and $18.5 million in assets. After numerous repossessions and small auctions, Hecker still owes creditors about $400 million.

The personal property that Rowan possessed before moving into the house last year is not of interest to the bankruptcy trustee, court papers said. Rowan faces two criminal counts of bankruptcy and bank fraud for allegedly lying in bankruptcy proceedings and falsifying income data on an auto loan that she secured for Hecker's benefit.

Hecker, who was once one of Minnesota's largest car dealers with sales, rental, fleet and lease operations, faces 25 counts of criminal bankruptcy fraud, mail fraud, conspiracy and money laundering for allegedly hiding assets from the court and obtaining loans from Chrysler Financial and other lenders with false or incomplete information.

Two weeks ago, Hecker gave up his fight in bankruptcy court in order to focus on the criminal charges.

Dee DePass • 612-673-7725