July 02, 2009

State Farm Accuses Hecker of Fraud

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BLOOMINGTON, IL - State Farm Mutual Automobile Insurance Co. has accused Denny Hecker's Advantage Rent-A-Car and Southwest-Tex Leasing subsidiary of allegedly inflating auto repair bills on hundreds of rental car claims, according to the Star Tribune.

State Farm is demanding more than $1 million in damages for "hundreds of fraudulent claims," reported the Tribune. The suit, filed in September in an Arizona federal court, accuses Hecker of allegedly submitting bills from third party auto-accident appraisers and body shops that failed to show his industry discounts on rates and prices. State Farm also accuses Hecker of selling damaged cars for inflated prices and yet billing State Farm for total losses.

Southwest-Tex has denied the allegations, saying the complaint was vague, ambiguous and overbroad, according to the Tribune.

In May, Hecker was sued by GELCO and GE Fleet Services for allegedly defaulting on $7.2 million in car leases that Hecker personally guaranteed.