Denny Hecker, who once owned 26 Minnesota auto dealerships and Advantage Rent A Car, pleaded guilty to fraud and conspiracy in federal court on Sept. 7, according to the Star Tribune.
Hecker was accused of hiding assets from the U.S. Bankruptcy Court and obtaining loans from Chrysler Financial and other lenders using false or incomplete information.
In court, Hecker admitted to schemes to obtain financing from Chrysler Financial and other lenders. In one deal, he admitted arranging for false paperwork to be sent to Chrysler Financial indicating he had a guaranteed repurchase agreement with Hyundai for 5,000 vehicles when he didn't. In other deals over several years, he admitted he failed to tell lenders about incentive payments from Suzuki.
Altogether, the fraud cost lenders $20 million, Hecker admitted in the plea deal.
Under the plea bargain, Hecker also could face fines of $250,000 on each of the two counts.
The offenses to which Hecker pleaded guilty under a plea agreement each carry a maximum penalty of five years, meaning Hecker faces up to 10 years in prison.
The agreement spares Hecker from trial and exposure to other charges in a 26-count indictment that carried 10- and 20-year maximum sentences.
The judge allowed Hecker to remain free under 24-hour home monitoring until his sentencing, likely within a couple of months, though no date was set. He must disclose any assets and assist in recovering them for creditors.