Local News

ST. LOUIS PARK, Minn. (WCCO) ― Dozens of consumer complaints have prompted the Minnesota State Patrol to launch a criminal investigation into the bankrupt Denny Hecker Automotive Group.

Agents are raiding several of Denny Hecker's properties, searching for evidence the group committed felonies involving taxes and fees on vehicle sales and liens on vehicles that had been traded in over the past several months.

Agents from the Minnesota State Patrol, the Drug Enforcement Agency, the Internal Revenue Service and several law enforcement agencies are executing search warrants at Hecker's corporate headquarters in St. Louis Park at Highway 169 and Interstate 394. The entire building is taped off and agents are looking at financial documents and are removing files and computers from the building. Agents are also searching several cars in the parking lot.

The DEA and IRS were involved in the raids because the State Patrol task force didn't have enough people to execute the numerous search warrants. There is no actual drug investigation.

Five other locations are also being raided, the Patrol said. Two of those are dealerships: the Southview Chevrolet in Inver Grove Heights and the GMC Cadillac in Oak Park Heights. The GMC dealership is not open. The three other locations are homes Hecker owns: two in Medina and one in Cross Lake.

Hecker's attorney, Marsh Halberg, said the raids come as a "complete surprise." Halberg said Hecker is inside the St. Louis Park building and he and his employees are cooperating with law enforcement and are providing them with necessary passwords and other information.

Halberg said Hecker has not been arrested, but said he didn't know if Hecker eventually would be arrested. State Patrol Col. Mark Dunaski said Hecker has not been charged and does not face imminent arrest.

The raids stem from allegations that Hecker, 56, was not paying the state of Minnesota the sales tax on license plates, titles, registration and other fees the state charges. He's also accused of not paying off old loans he acquired from customers when they bought new cars.

The raids are the product of an investigation that has been ongoing for several months.

Dunaski said Wednesday that consumers have two kinds of complaints against the Hecker group.

The first is that consumer would purchase a vehicle, pay to the Hecker group the 6.5 percent sales tax and the title and license registration fees, but never receive their title or license plates.

The second complaint is that people would trade in their old car and would later be informed by their lender that the lien on the vehicle has not been paid off.

Under Minnesota law, it is a felony for a dealership to not pay the state the sales tax it collects. Those found guilty could spend up to five years in prison and pay a $10,000 fine. It's also a felony for a dealership to not pay off a lien if a vehicle has been traded in. Those found guilty of that crime could spend up to three years in prison and pay a $6,000 fine.

Dunaski said some people have said they've been victims of both kinds of fraud. The Patrol has received complaints from people in 15 Minnesota counties.

"The number and severity of citizen complaints prompted us to take action with the goal of resolving the problems both for consumers and the state of Minnesota," Dunaski said.

The Patrol believes there are more victims out there. If you have questions, you can call a hot line set up by the Patrol at 1-800-593-5000.

Hecker filed for personal bankruptcy protection on June 4, saying he owes up to $1 billion to 1,000 creditors. So far, 95 of those creditors are listed in court documents, including the Bellagio and Mirage hotel-casinos in Las Vegas, the city of Aspen, Colo., Royal Jewelers and his business attorneys.

Hecker's largest creditors are expected to be auto finance companies. Hecker was one of Minnesota's largest car dealers, but with the economic downturn, he has shuttered or sold 25 of his 26 dealerships.

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