Trustee OK'd to go deeper into Hecker's financesby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — The trustee overseeing fallen auto magnate Denny Hecker's bankruptcy was authorized Monday to obtain subpoenas to further delve into Hecker's finances.
Judge Robert Kressel ruled the trustee could get subpoenas to learn how Hecker cashed in life insurance polices this summer and spent the money.
The trustee wants a thorough accounting of where at least some $150,000 in insurance money went. The trustee maintains the money should have been set aside to pay creditors in Hecker's bankruptcy.
Hecker owes creditors hundreds of millions of dollars.
A court filing contains Hecker's one-page, hand-written account of where insurance money was spent. Many of the entries aren't clear. But it appears Hecker's expenditures included $690 in parking violations and towing charges, $2,750 to Manny's Steakhouse and $2,880 to the Wayzata Country Club.
Hecker has pleaded guilty to federal fraud charges and faces 10 years in prison when he is sentenced. Hecker was charged with defrauding Chrysler Financial Services and a number of banks. He was also charged with committing bankruptcy fraud by trying to hide assets.