Indianapolis - With the Florida chase for money manager Marcus Schrenker over, Indiana's Secretary of State continues the paper chase trying to save investors' assets. Up to $2 million could be at risk and more investors are contacting the state every day.
When he was flying high he owned homes in Florida and on Geist, Schrenker had a stunt plane and two other airplanes and contacts.
"This is a case of affinity fraud. People have been cheated by those they have come to know, love and trust," said Indiana's Secretary of State Todd Rokita. Rokita is also a licensed pilot and he says Schrenker targeted pilots.
Schrenker could not only talk flying with them. He would have known the size of their airline pensions, how much money they would have to invest and how far he could push them.
"These people would readily give over their money," Rokita said. Even on the side of his plane, Schrenker promoted flyer accounts.
Investor Robert Sellers says he ended up suing Schrenker over a soured investment deal. "He told us he would take the $600,000 and in six months to a year make it over a million dollars," Sellers said.
Sellers' son Kevin was one of those pilot-investors. When they saw their investment crashing, they took Schrenker to court. Sellers claims Schrenker then threatened his son. "He came back at Kevin and said, 'You better drop this suit or I'm going to kill you,' and he was very serious about it."
Schrenker's wife Michelle filed for divorce December 30th. The next day state agents searched their home. Her lawyer said Wednesday, "to Michelle's dismay at the time her home was being searched Marcus was in Florida with his girlfriend." She is divorcing him for infidelity.
Michelle Schrenker is also named in court documents. One says she and her husband converted investor funds for his and her personal use. She is named as a controlling party in Schrenker's companies. Her lawyer said she is not guilty of anything.
Searching the Schrenkers' house New Year's Eve, the secretary of state seized six computers, nine tubs of files, an "ideas" book and, in a vase, $6,000 in cash. Schrenker was a careful records keeper but Rokita also says there are "glaring gaps" in the file.
Secretary Rokita added, "At some point in time there may have been a shredding party or two."