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Jun 23, 2009 2:40 pm US/Central
Denny Hecker Accused Of Fraud, Theft
(WCCO)
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According to the document, filed on behalf of a U.S. bankruptcy trustee, Denny Hecker used Advantage Rent-A-Car businesses as a diversion.
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A civil complaint filed Tuesday accuses car sales mogul Denny Hecker of fraud and theft in what amounts to a financial shell game.
According to the document, filed on behalf of a U.S. bankruptcy trustee, Hecker used Advantage Rent-A-Car businesses as a diversion.
The document states Hecker moved nearly $150 million from his Southwest Tex auto leasing businesses, which he allegedly overbilled "the Debtors, (who) did not receive sufficient or reasonable consideration, or reasonable equivalent value."
The document also contains accusations of unjust enrichment.
"By virtue of receipt and retention of the Payments, the Defendants have been unjustly enriched because they have received and retained assets belonging to the Debtors, without having given or paid adequate or reasonable consideration in exchange therefore," reads the complaint.
Last week, investigators raided Hecker's homes and businesses, searching for evidence that Hecker didn't pay sales taxes on his vehicles sold, and that he wasn't getting license plates and titles for customers.
The Internal Revenue Service says bankrupt auto tycoon Denny Hecker owes at least $2.6 million in income taxes.
The IRS has placed liens on property owned by Hecker and his wife, claiming they owe taxes for 2003 and 2005. The federal agency is among a scores of creditors that are looking to recover cash from the auto dealer.
Hecker filed for personal bankruptcy earlier this month, claiming he owes up to 1,000 creditors as much as $1 billion.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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