Legal Issues and Fraud and Banking & Finance and Investing and Securities fraud and Law

Hamilton County woman to be sentenced in stock scheme

February 16, 2011

The Indiana Secretary of State’s securities division has reached an agreement to liquidate the assets of a Hamilton County woman set to be sentenced Wednesday afternoon for defrauding investors of nearly $2 million.

Dorothy Geisler, 52, sold Class A stock in a clean coal energy company called Praxis Resource Partners LLC at $56 a share but represented them as Class B shares. She failed to tell investors that as Class A shares, they had little or no value.

Geisler then diverted the difference into an Indianapolis bank account for personal expenses, including the purchase of a home on Geist Reservoir, the securities division said Tuesday in announcing the agreement.

The liquidation, initiated by an asset freeze filed in a Marion County civil court by the securities division in March 2009, involves assets of more than $1 million.

Besides the home, additional items to be liquidated, with proceeds benefitting the victims of the scheme, include a Picasso lithograph, Waterford crystal glasses, fur, jewelry and a boat.

Geisler is scheduled to be sentenced at 3 p.m. Wednesday in Marion Criminal Court.

She pleaded guilty to one count of securities fraud, a Class C felony, which typically carries a sentence of two to eight years.

In exchange for the guilty plea, prosecutors agreed to dismiss 14 counts of theft, a Class D felony, and two counts of forgery, a Class C felony.

In January, Judge Robert Altice said during a hearing that Geisler’s plea carries a sentence of one year of home detention and four years of probation, in addition to 400 hours of community service and victim restitution in the amount of $1.9 million.
 

ADVERTISEMENT

Recent Articles by IBJ Staff

Comments powered by Disqus