Fraud and Investing and Investment Advisers and Banking & Finance and Criminal Charges and Law

Schrenker faces nine more charges in Indiana

August 19, 2009

An Indiana money manager scheduled to be sentenced today in Florida on charges he deliberately crashed his plane to fake his death and flee financial ruin now faces more charges in his home state.

The Indiana Secretary of State’s Office said this afternoon that Hamilton County Prosecutor Sonia Leerkamp filed nine additional charges of fraudulent sale of securities against Marcus Schrenker.

The new charges are Class C felonies punishable by two to eight years in prison and are in addition to the two felony counts of securities fraud he was charged with in Hamilton County in January.

Schrenker, 38, pleaded guilty in June to placing a false aircraft distress call and intentionally crashing his airplane. The Fishers man was scheduled to be sentenced today in U.S. District Court in Pensacola, Fla. Sentencing guidelines range from 46 to 63 months in prison and payment of $871,000 in restitution for the aircraft.

Authorities say Schrenker in January put his plane on autopilot before it crashed in Florida’s Panhandle. They say Schrenker parachuted into Alabama and was found two days later at a Florida campground.

Indiana authorities intend to prosecute Schrenker on separate charges related to his financial dealings in the state.

“These new charges supplement the original charges filed in January and reflect the broader scope of Schrenker’s alleged financial misdeeds that prompted this investigation,” Indiana Secretary of State Todd Rokita said in a prepared statement.

According to Hamilton County court documents, Schrenker defrauded his clients by selling them an unauthorized foreign currency fund, creating and maintaining false account information, and using client funds for his own personal use.

Schrenker and his financial services businesses originally became the targets of an investigation by the Indiana Securities Division in December. The next month, investigators received approval to freeze his personal and business assets in an attempt to recover as much money as possible for his victims. Schrenker’s assets remain in receivership.

Schrenker then fled the state and was captured and arrested in Florida.
 

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