Former Advantage Rent A Car Owner Pleads Not Guilty to Fraud

Auto businessman Denny Hecker, who owned Advantage Rent A Car, 26 auto dealerships, and other businesses, pleaded not guilty on Feb. 11 to charges he operated a scheme to defraud lenders of millions.

Hecker and a former executive, Steven Joseph Leach, are each charged with one count of conspiracy to commit wire fraud and five counts of wire fraud. Leach also pleaded not guilty. Hecker is also charged with money laundering.

One of Minnesota’s largest auto dealers, Hecker owned the dealerships and other businesses as recently as 2008.

The indictment alleges that in order to fund the businesses and buy vehicles, Hecker borrowed money from commercial lenders and used purchased vehicles as the primary collateral.

In the fall of 2007, Hecker and Leach gave fraudulent documents to Chrysler Financial Services Americas to obtain $80 million in financing to purchase vehicles from Hyundai Motor America, according to the indictment. Chrysler Financial issued the loan and lost more than $10 million.

Hecker filed for bankruptcy last June, claiming $787 million in debt and $18.5 million in assets.

Hecker’s attorney said he was confident that a jury would find Hecker not guilty.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Understanding The Fleetification of Everything

As fleet miles increase exponentially, and as new stratum of fleet enter both consumer and business use cases, the "founding fathers" who gathered at Fleet Forward in Miami last week have some work to do.

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Job Finder: Access Top Talent. Fill Key Positions.

>