Judge scolds Hecker for scant financial disclosures

Rochelle Olson

Nov. 6, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- Former auto mogul Denny Hecker must submit sworn and detailed testimony about his financial situation for his divorce proceedings because Hennepin County Judge Jay Quam found his previous submissions to the court to fall "woefully short."

The judge issued a three-page order throughout which he scolds Hecker's failure to be forthcoming about his finances.

Quam is trying to determine whether to require Hecker to pay $7,500 a month to his wife of 15 years, Tamitha Hecker, the mother of their two children, 14 and 8. Tamitha Hecker wants to enforce an agreement signed by her and Hecker. But Hecker has argued the agreement is void.

He and his lawyer Bill Skolnick also say Hecker doesn't have the means to pay the money even if the judge ordered him to do so. On Oct. 22, Quam gave Hecker two weeks to submit a detailed accounting of his personal finances since he filed for bankruptcy in June claiming $18 million in assets and $767 million in debts. Hecker got the deadline extended a week, and his submission was made public earlier this week.

In the filing, Hecker outlined 12 sources of income including $25,000 through four separate "consulting fees" and $25,000 for "reimbursement of expenses." He listed $125,155 for cashing out a 401(k) and a $100,000 loan from LKMCD Properties, an entity created by the new owner of Inver Grove Heights Toyota.

He got $50,000 in loans from Ralph Thomas, who hired Hecker in the 1980s to manage his Minneapolis Auto Auction. Thomas later sold the auction to Hecker and Walter Bush.

Quam wanted to know not only how much money Hecker received, but how much he has and what he spent it on.

On the first count, Quam said Hecker claims to have received $230,000 since his bankruptcy filing. "This is not an insignificant amount for one who claims to be unable to pay maintenance" to his estranged wife, the judge wrote.

The judge wrote that "at first blush it seems likely that most (if not all) of a 401(k) present during a 15 + year marriage is a marital asset and one that is not Mr. Hecker's to spend as he chooses. Mr. Hecker has provided nothing that would suggest that the 401(k) is not a marital asset, or" that it is somehow exempt from state law regarding marital assets.

On the issue of how much money he has, Quam said Hecker made "no response."

Regarding how he has spent his money, Quam wrote that Hecker's "response is better than nonexistent, but not by much."

Quam raised concerns about some expenses and wire transfers that have lead him to "have concerns about Mr. Hecker's credibility with respect to financial matters."

He cited a couple of dozen expenditures that were in detailed court documents not currently public. Among them: "$2,078 to "Scoop" in Las Vegas on Aug. 24; $5,000 to the Mirage Hotel and Casino on Aug. 26; $6,500 to Northstar Aviation Insurance on Sept. 6; $1,547 to the Lafayette Club on Sept. 25; and $960 to the Wayzata Country Club on Sept. 30.

"Given the claims Mr. Hecker is making about his financial situation and his inability to pay maintenance, these expenses are certainly questionable. Whether he likes it or not, the law places a higher obligation on Mr. Hecker to support his soon-to-be ex-wife than the Mirage Hotel and Casino," Quam wrote.

The judge noted that Hecker appeared to have transferred $142,000 out of his accounts without any documentation of purpose for the transfers. "Hecker raises far more questions than he provides answers," Quam wrote.

Quam said some of Hecker's transfers may involve "improper dissipation of assets." He wants Hecker to submit sworn testimony by Friday, Nov. 13, at 4:30 p.m. If Hecker fails to do so, Quam warns that he will impose sanctions.

In addition to bankruptcy, Hecker is the target of a federal criminal probe. He continues to live in the Twin Cities with girlfriend Christi Rowan.

Rochelle Olson --612-673-1747

Newstex ID: KRTB-0281-39512080