Back in September, we published a post about businessman Denny Hecker. Hecker was an auto dealer in the Upper Midwest whose story has inspired gasps of disbelief even as far away as Atlanta. After years of riding high, the 58-year-old began his tumble in 2008. He filed Chapter 7 bankruptcy in July 2009, reporting a debt load of $767 million. In September 2010, Hecker entered a guilty plea to charges of bankruptcy fraud and wire fraud conspiracy. He was sentenced recently, receiving 10 years in prison and a tongue-lashing from the judge in the case.

When things began to fall apart, Hecker owned a couple dozen car dealerships, a rental car service and a fleet leasing business. The empire was a house of cards, though -- he had funded his businesses and his lavish lifestyle by defrauding lenders. The cave-in began when Chrysler Financial cut off his dealership credit.

The Chapter 7 did not result in a full discharge of his debts. Fending off criminal charges, Hecker agreed to pay Chrysler $83 million. The bankruptcy did not stem his spending or his unlawful financial dealings. The plea deal stemmed from more than a score of charges of hiding assets from a bankruptcy court, wire fraud and conspiracy.

The 10-year sentence is the maximum combined penalty the judge could give. She also ordered him to pay $31.4 million in restitution. To facilitate the restitution payments, she said she would recommend that he serve his time near his home state.

The judge didn't stop there. Responding to Hecker's apology to the public and statement that he is not a villain, reports are that the judge called him a "scoundrel" and adamantly refused his request to be given a furlough to say goodbye to his family. She cited his "shocking" and "appalling" conduct when he was on release earlier in 2010. (He has been in custody since October.)

The Assistant U.S. Attorney prosecuting the case said the sentence was fair, adding that Hecker had behaved as if the rules of this court as well as the bankruptcy court didn't apply to him. Defense counsel, however, said his client had been punished by losing his homes and business. He added that Hecker had been "an honest businessman for 28 of the 30 years he was in business."

Source: The Business Journal (Twin Cities, Minn.), "Denny Hecker sentenced to 10 years," Jim Hammerand, 02/11/11