Schrenker Sentencing, New Charges Expose Trail of Deceit

While Marcus Schrenker was being sentenced today in Pensacola for his failed suicide attempt in January, Indiana authorities filed nine more counts of securities fraud against him in Hamilton County.  Each count is a class “C” felony which carries a two to eight year prison sentence.

In federal court, Schrenker was sentenced to 51 months in jail and ordered to repay the cost of the wrecked airplane which was set at $900,000.  In court documents, Schrenker showed a pattern of lies and deceit, even after he was incarcerated in late January, 2009.

• Schrenker told a Georgia investor last year that he had “multiple sclerosis” and told the court in July of 2009 that he was diagnosed with “Bi-Polar Axis II and depression” in 1991.  Over the course of 15 years from 1992 to 2007, Schrenker underwent 8 airman’s medical exams and never once disclosed the alleged diagnosis.
• In October of 2008, he told his Piper airplane insurance company that he was “currently receiving training at NASA for the T38 program.” NASA officials deny he ever received such training.
• Days after his infamous plane jump over Alabama, Schrenker called his step-mother and told her he lost part of his arm when he jumped from the aircraft. Obviously this is not true.
• During a Good Morning America phone interview on April 21, 2009, Schrenker claimed to have suffered from hypoxia forcing him to parachute from his plane. However, Schrenker was flying at approximately 3,500 feet for fifteen minutes before he jumped. Hypoxia does not occur below 10,000 feet.

Schrenker’s history of deceit and lies caught up to him in Indiana as well. Hamilton County authorities today filed nine counts of securities fraud against Marcus Schrenker in addition to the two counts files in January, 2009.

Authorities allege that Schrenker invested into a Euro Fund from Fidelity International, a fund which does not exist. He then set up accounts with the online website Morningstar.com and manipulated them to give the appearance that the fund and their investments were legitimate. Meanwhile, he deposited the investors’ funds directly into his own account.

Schrenker even took money from his own aunt, Rita Schilling. Last September, Schrenker withdrew $22,851 from his aunt’s National Fianancial account and deposited it to a Heritage Wealth Management account. The next day, Schrenker paid his mortgage payment of $10,846.95 and another $10,000 was paid to National City Bank for an undisclosed payment.

David and Kathie Sawrie also fell victim to Schrenker when in December, 2007, they gave $34,000 to him to invest in foreign currency markets. The check was never deposited into an investment account, and the following day $30,928 was paid out by Heritage Wealth Management for things like airplane insurance and Holy Spirit at Geist athletic sponsorships.

Michael and Susan Alma were referred to Schrenker by a mutual friend and invested $50,000 which was deposited to a National City Bank account. Again, personal and corporate bills were paid instead of investing the funds.

Delta Airlines pilot Ronald Johnson fell prey to Schrenker on four different occasions totaling $159,000 during 2007. Fellow pilot Robert Askins rolled his retirement account into a Fidelity IRA through Schrenker. In both cases, bank records show that their money was never invested but used to pay personal and corporate bills.

The Black, Harris, Wingfield, and Sawrie families were also duped in similar fashion.

Schrenker is expected to be back in Hamilton County to face these 11 charges as early as next week. Michelle Schrenker, wife of Marcus and former Chief Financial Officer of Heritage Wealth Management, is not currently being charged.