March 23, 2009
Parachuting Financier Hit With Fines, Restitution
By THE ASSOCIATED PRESS
Filed at 12:08 p.m. ET
INDIANAPOLIS (AP) -- A money manager accused of trying to fake his death in a plane crash has taken another financial hit.
Under an Indiana judge's order made public Monday, Marcus Schrenker must pay $304,000 in restitution to bilked investors and $280,000 in state fines. Investors told the judge in January that Schrenker cost them hundreds of thousands of dollars in losses.
Schrenker already was facing millions in judgments and potential penalties, ranging from an insurance company's lawsuit seeking $1.4 million in commissions to a judge's order that he pay $12 million in a lawsuit over the sale of a plane.
Schrenker was arrested in January after authorities say he bailed out of his plane to flee financial ruin. He faces federal charges stemming from his plane's crash in Florida.
Copyright 2009 The Associated Press
Monday, March 23, 2009
Friday, March 20, 2009
Judge to determine if Schrenker is competent to stand trial
Posted:
March 19, 2009 05:36 PM EST
Chris Proffitt/Eyewitness News
Miami - Psychiatric experts have handed a Hamilton County judge their mental evaluation of Geist businessman Marcus Schrenker.
Schrenker is still in jail in Florida, accused of trying to fake his death and intentionally crashing his plane.
Saying that he was heavily medicated and under extreme stress a full year before his capture in a Florida campground after an apparent suicide attempt, Marcus Schrenker told Indiana authorities in a recent letter that he didn't try to fake his death in a plane crash.
Since last month, the former Geist money manager has undergone a mental evaluation in a Florida federal detention center to determine if he's competent to stand trial on charges that he intentionally crashed his airplane into the Florida panhandle after radioing a fake distress call. But before then, Marcus Schrenker faced divorce, lawsuits and an investigation into allegations that he bilked investors out of hundreds of thousands of dollars and perhaps more.
"This is a classic example of affinity fraud. The kind of fraud that happens by those we come to know, love and trust," said Todd Rokita, Indiana secretary of state.
With their assets frozen by an Indiana judge, Michelle Schrenker, publicly distancing herself from her husband's troubles, appeared on NBC's Today Show.
"He took the deposits and that was never something I did. My focus was always my family. It was never the company," said Michelle Schrenker.
Marcus Schrenker faces felony charges in Hamilton County related to his business dealings in Indiana. But what if he's found incompetent to stand trial on federal charges in Florida? Could that affect his prosecution here? Prosecutors say either way, Schrenker is expected to return to Indiana in late June or early July.
"Under Indiana law, if he's found not to be competent to stand trial, he would be consigned to the Department of Mental Health for evaluation and treatment. There he would remain until competent to stand trial," said Jeffrey Wehmueller, Hamilton County chief deputy prosecutor.
A judgment over whether Marcus Schrenker is competent to stand trial in Florida has already been made and now rest in the hands of a federal judge.
Schrenker was moved to a federal detention center in Tallahassee this week. The judge in the case is expected to set a hearing soon before ruling whether Schrenker is competent to stand trial.Marcus Schrenker is the subject of an hour-long report Friday night on Dateline NBC. It begins at 10:00 pm on Channel 13.
Pilot mystery - Read stories and watch video related to this case.
All content © Copyright 2002 - 2009 WorldNow and WTHR. All Rights Reserved.
March 19, 2009 05:36 PM EST
Chris Proffitt/Eyewitness News
Miami - Psychiatric experts have handed a Hamilton County judge their mental evaluation of Geist businessman Marcus Schrenker.
Schrenker is still in jail in Florida, accused of trying to fake his death and intentionally crashing his plane.
Saying that he was heavily medicated and under extreme stress a full year before his capture in a Florida campground after an apparent suicide attempt, Marcus Schrenker told Indiana authorities in a recent letter that he didn't try to fake his death in a plane crash.
Since last month, the former Geist money manager has undergone a mental evaluation in a Florida federal detention center to determine if he's competent to stand trial on charges that he intentionally crashed his airplane into the Florida panhandle after radioing a fake distress call. But before then, Marcus Schrenker faced divorce, lawsuits and an investigation into allegations that he bilked investors out of hundreds of thousands of dollars and perhaps more.
"This is a classic example of affinity fraud. The kind of fraud that happens by those we come to know, love and trust," said Todd Rokita, Indiana secretary of state.
With their assets frozen by an Indiana judge, Michelle Schrenker, publicly distancing herself from her husband's troubles, appeared on NBC's Today Show.
"He took the deposits and that was never something I did. My focus was always my family. It was never the company," said Michelle Schrenker.
Marcus Schrenker faces felony charges in Hamilton County related to his business dealings in Indiana. But what if he's found incompetent to stand trial on federal charges in Florida? Could that affect his prosecution here? Prosecutors say either way, Schrenker is expected to return to Indiana in late June or early July.
"Under Indiana law, if he's found not to be competent to stand trial, he would be consigned to the Department of Mental Health for evaluation and treatment. There he would remain until competent to stand trial," said Jeffrey Wehmueller, Hamilton County chief deputy prosecutor.
A judgment over whether Marcus Schrenker is competent to stand trial in Florida has already been made and now rest in the hands of a federal judge.
Schrenker was moved to a federal detention center in Tallahassee this week. The judge in the case is expected to set a hearing soon before ruling whether Schrenker is competent to stand trial.Marcus Schrenker is the subject of an hour-long report Friday night on Dateline NBC. It begins at 10:00 pm on Channel 13.
Pilot mystery - Read stories and watch video related to this case.
All content © Copyright 2002 - 2009 WorldNow and WTHR. All Rights Reserved.
Sunday, March 8, 2009
Unredacted Schrenker Letter
PDF SCANS OF LETTER AT BOTTOM OF THE NEWS ARTICLE.
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Money manager denies intentionally crashing plane
By CHARLES WILSON – 2 days ago
INDIANAPOLIS (AP) — A money manager charged with trying to escape financial ruin by faking his death in a plane crash denies staging the accident and says in a letter to authorities his estranged wife had no part in any misdealings.
Marcus Schrenker, who's accused of bilking investors of hundreds of thousands of dollars, sent a seven-page letter to Indiana authorities asking them to unfreeze the assets of his wife, Michelle, who is listed as his company's chief financial officer. He also offers to make restitution in return for reduced charges.
"There isn't a moment that goes by that I don't deeply regret the mistakes our company made and hope all parties will let me take responsibility for the financial issues surrounding the alleged funds that clients are missing," Schrenker wrote in the Feb. 24 letter, a copy of which was obtained Friday by The Associated Press.
Jim Gavin, a spokesman for the Indiana secretary of state's office, which regulates securities, confirmed the agency had received the letter this week but declined to comment on its contents.
Gavin said Secretary of State Todd Rokita would continue to press the case in court and will "not let any party benefit from wrongly gotten wealth."
A message seeking comment was left at the Indiana attorney general's office, to which the letter also was addressed.
Schrenker, 38, was arrested at a Tallahassee, Fla., campground on Jan. 13, two days after authorities say he put his plane on autopilot and jumped out over Alabama to flee personal and financial problems. The plane crashed about 200 miles away in Florida, where he is being held on federal charges stemming from the crash.
He also faces felony charges tied to his financial dealings in Indiana, is named in more than a half-dozen lawsuits and has lost millions of dollars in legal judgments. His wife filed for divorce Dec. 30, the day before investigators searched his home.
State attorneys have placed the assets of both Schrenkers in a court-controlled receivership — including the couple's suburban Indianapolis home assessed at $1.4 million, where Michelle Schrenker and the couple's three children live.
The state contends Michelle Schrenker withdrew tens of thousands of dollars from bank accounts that also included investor money in the week before she filed for divorce.
She denies any wrongdoing and says all she did was handle the payroll and pay bills. Her lawyer is appealing the receivership decision.
The letter seemed intended to reinforce her arguments.
"Michelle has never received any compensation, assets, indirectly or directly, from client funds," it said. "Assessing her assets, and taking receivership, is wrong.
"There is no honor in throwing kids out on the street, especially at times like these."
The Associated Press left a message seeking comment with attorney Mary Schmid, who is representing Michelle Schrenker.
Marcus Schrenker also flatly denies trying to fake his own death or evade authorities and says he suffered a head injury in the plane crash that resulted in a loss of memory. He said he had intended to visit his father in Florida and take a motorcycle trip.
"The accident was just that, an accident," he wrote.
Schrenker also repeated claims made in an earlier interview with The New York Post that he was under psychiatric care and on medication for more than a year. He said he had been mentally incompetent due to stress and a prescription drug problem.
"I was simply overwhelmed, could no longer reason, and made some poor investment choices," he wrote.
Copyright © 2009 The Associated Press. All rights reserved.
Related articles
Financial adviser Schrenker declares he's innocentIndianapolis Star - Mar 6, 2009
Ind. money manager denies trying to fake deathThe Associated Press - Mar 6, 2009
Indiana man denies faking his own deathShelby County Reporter - Mar 6, 2009
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Money manager denies intentionally crashing plane
By CHARLES WILSON – 2 days ago
INDIANAPOLIS (AP) — A money manager charged with trying to escape financial ruin by faking his death in a plane crash denies staging the accident and says in a letter to authorities his estranged wife had no part in any misdealings.
Marcus Schrenker, who's accused of bilking investors of hundreds of thousands of dollars, sent a seven-page letter to Indiana authorities asking them to unfreeze the assets of his wife, Michelle, who is listed as his company's chief financial officer. He also offers to make restitution in return for reduced charges.
"There isn't a moment that goes by that I don't deeply regret the mistakes our company made and hope all parties will let me take responsibility for the financial issues surrounding the alleged funds that clients are missing," Schrenker wrote in the Feb. 24 letter, a copy of which was obtained Friday by The Associated Press.
Jim Gavin, a spokesman for the Indiana secretary of state's office, which regulates securities, confirmed the agency had received the letter this week but declined to comment on its contents.
Gavin said Secretary of State Todd Rokita would continue to press the case in court and will "not let any party benefit from wrongly gotten wealth."
A message seeking comment was left at the Indiana attorney general's office, to which the letter also was addressed.
Schrenker, 38, was arrested at a Tallahassee, Fla., campground on Jan. 13, two days after authorities say he put his plane on autopilot and jumped out over Alabama to flee personal and financial problems. The plane crashed about 200 miles away in Florida, where he is being held on federal charges stemming from the crash.
He also faces felony charges tied to his financial dealings in Indiana, is named in more than a half-dozen lawsuits and has lost millions of dollars in legal judgments. His wife filed for divorce Dec. 30, the day before investigators searched his home.
State attorneys have placed the assets of both Schrenkers in a court-controlled receivership — including the couple's suburban Indianapolis home assessed at $1.4 million, where Michelle Schrenker and the couple's three children live.
The state contends Michelle Schrenker withdrew tens of thousands of dollars from bank accounts that also included investor money in the week before she filed for divorce.
She denies any wrongdoing and says all she did was handle the payroll and pay bills. Her lawyer is appealing the receivership decision.
The letter seemed intended to reinforce her arguments.
"Michelle has never received any compensation, assets, indirectly or directly, from client funds," it said. "Assessing her assets, and taking receivership, is wrong.
"There is no honor in throwing kids out on the street, especially at times like these."
The Associated Press left a message seeking comment with attorney Mary Schmid, who is representing Michelle Schrenker.
Marcus Schrenker also flatly denies trying to fake his own death or evade authorities and says he suffered a head injury in the plane crash that resulted in a loss of memory. He said he had intended to visit his father in Florida and take a motorcycle trip.
"The accident was just that, an accident," he wrote.
Schrenker also repeated claims made in an earlier interview with The New York Post that he was under psychiatric care and on medication for more than a year. He said he had been mentally incompetent due to stress and a prescription drug problem.
"I was simply overwhelmed, could no longer reason, and made some poor investment choices," he wrote.
Copyright © 2009 The Associated Press. All rights reserved.
Related articles
Financial adviser Schrenker declares he's innocentIndianapolis Star - Mar 6, 2009
Ind. money manager denies trying to fake deathThe Associated Press - Mar 6, 2009
Indiana man denies faking his own deathShelby County Reporter - Mar 6, 2009
More coverage (7) »
Click on the images to enlarge.
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