Lawyer claims Hecker raided kids' trust funds

MINNEAPOLIS -- Fallen auto mogul Denny Hecker's late ex-father-in-law was involved in raiding 4 trust funds for Hecker's children and grandchildren, according to a letter sent to U.S. Bankruptcy Court on Thursday.

Matthew Burton, attorney for Bankruptcy Trustee Randall Seaver, sent the letter to Judge Robert Kressel detailing how an alleged scheme to help Hecker's failing financial situation involved repeated attempts to have access to the trust funds.

Wanted childrens' money

According to Burton's letter, "In November of 2009, Mr. Hecker asked Bruce Parker, in his capacity as trustee of the minor's trusts, whether he could borrow money from the trusts. Mr. Parker said, 'no.' Mr. Parker resigned and was replaced by William Prohofsky as the trustee for each of the trusts."

Prohofsky sent trust money to lawyers

The letter indicates that on December 16, 2009, Prohofsky did what Hecker had asked of Parker. He "surrendered the policies and wired the cash value to Mr. Skolnick's (Hecker's Bankruptcy attorney William Skolnick) operating account."

An attachment to the letter includes records of 4 transfers at Associated Bank involving the 4 trusts and totaling $75,000.

Lied to Court?

Burton's letter indicates that the court had been told the money for the "sale of items" to Hecker involved $75,000 from long-time Hecker friend Ralph Thomas. That money was apparently used to maintain Hecker's Medina home as a residence for himself and live-in girlfriend, Christi Rowan.

Burton's letter adds "It appears that representations made to the Court and the Trustee relating to the involvement of Mr. Thomas and the source of the funds were not true."

Prohofsky suicide 

William Prohofsky, 71, was Hecker's ex father-in-law. He committed suicide on March 3rd, leaving Hecker-related documents for investigators in the car where he shot himself in Medina.

Hecker is to appear before Judge Kressel on April 7th to formalize Hecker's stated intention to surrender his fight to have more than 700 million dollars in creditors' claims dismissed. It is not known, what, if any, impact that Burton's letter will have on those proceedings.

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