Schrenker assets to remain frozen

Michelle Schrenker

Chris Proffitt/Eyewitness News

Hamilton County - The state won a preliminary injunction freezing the assets of Marcus and Michelle Schrenker and appointing a receiver that takes charge of everything thing they own.

Siding with the state securities commission, a judge on Thursday issued the preliminary injunction freezing the Schrenkers' assets while investigators from Secretary of State Todd Rokita's office continue a probe into allegations that Marcus Schrenker defrauded investors out of potentially millions of dollars.

Michelle Schrenker spoke for the first time since her husband made international headlines for faking his death last month by jumping from his airplane and facing charges he intentionally crashed the aircraft.

"One thing I have to say is this is not fair," she told Eyewitness News.

The court's order came two hours before Michelle Schrenker's divorce hearing. She filed for divorce from her husband in late December after his alleged year-long affair with another woman, Kelly Baker, and just days before he crashed his plane.

Ordering the Schrenker's assets frozen after a hearing last week, the judge in the case wrote that as chief financial officer of her husband's financial services companies, Michelle Schrenker allowed Marcus Schrenker to put assets in her name - money that she withdrew from the corporations' accounts. The judge added that she materially aided a violation of the Indiana Securities Act.

Michelle Schrenker's attorney promised an appeal, then went on the attack.

"I hope that Todd Rokita's happy. While they pull up the van to their house to kick her and the kids out, maybe he can get the kids' toys while he's at it," said Mary Schmid, Michelle Schrenker's attorney.

As part of her divorce hearing, Michelle Schrenker asked for over $600 a week in child support for the couple's three children, saying that she is unemployed and has no income. But with both of their assets frozen, and her husband jailed, it's unclear how she'll support her children. Schrenker is allowed to stay in her home until June while investigators continue building their case against the once high-flying couple.

"At this stage of the proceedings, to take things away from her without any proof that those things came from somebody else's money, is a scary, wrong thing for the state of Indiana to be doing to anyone," said Schmid.

Michelle Schrenker, meantime, maintained her innocence.

"I have done nothing wrong. The only thing my husband did was to give me a glorified title in that company," Schrenker said Thursday before breaking down in tears.

The state alleges the couple diverted investors' money for their personal use and in December alone, Michelle Schrenker withdrew over $60,000 from a company account.

Last week, a woman who identified herself as Marcus Schrenker's girlfriend, Kelly Baker, testified on Michelle Schrenker's behalf, saying that Marcus Schrenker spent investors' money lavishly on her (Baker).

"Mr. Rokita knows she had nothing to do with it because the guy who reported Marcus Schrenker told him that, and he's coming after her anyway because he's covering his political rear-end," said Schmid.

Secretary of State Rokita issued a statement saying, in part, that "Judge Campbell's ruling will allow my office and the receiver to continue identifying and preserving any assets that have been built up through ill-gotten gain."

Marcus Schrenker remains in federal custody in Florida. He faces charges there and also in Indiana. Among other charges, prosecutors allege that Schrenker was acting as a financial advisor even after his securities license was revoked.

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