Pilot fakes distress call, jumps from plane, on the run: President of Heritage Wealth management

[Liberal_in_LA]

Kinda complicated story here. Looks like the president of a investment fund tried to fake his death? Maybe? Uh oh for his clients. Sign of the times.

http://www.cnn.com/2009/US/01/12/florida.plane.crash/index.html

Authorities hunt for pilot who made bogus distress call

Sheriff's office: Pilot Marcus Schrenker checked in to hotel under false name

Pilot apparently faked emergency, jumped from plane, investigators say

Six-seater went down Sunday near Blackwater River in East Milton, Florida

(CNN) -- A pilot faked a life-or-death distress call before secretly parachuting out of a small plane that crashed in a swampy area in the Florida Panhandle, investigators said Monday.

The Piper PA-46 crashed near Milton, Florida, but the pilot was spotted in Alabama, authorities say.

The pilot, identified as Marcus Schrenker, 38, later checked in to a hotel in Alabama under a fake name and then put on a black cap and fled into woods, according to the Santa Rosa County Sheriff's Office in Milton, Florida.

Authorities are searching for the pilot.

The manager of the airport in Indiana from which the six-seat Piper PA-46 took off said that no one else was onboard at takeoff.

CNN's attempts to reach a representative for Schrenker were unsuccessful. The phone number for his financial management business was disconnected, and public records do not list his current home phone number.

Schrenker "appears to have intentionally abandoned the plane after putting it on autopilot over the Birmingham, Alabama, area and parachuting to the ground" Sunday night, the sheriff's office said in a news release.

--------
Public documents list Schrenker as president of an Indianapolis agency called Heritage Wealth Management, but no contact information for that agency was available. The address of the business is the same as the address associated with Schrenker's aircraft in aviation records.

Additional info: He was facing 1.4million lawsuit. claims he failed to remit 1.4 million in insurance payments
http://www.informationweek.com/blog/main/archives/2009/01/pilot_who_faked.html

http://dealbreaker.com/2009/01/todays-ponzi-trifecta-begins.php

Today's Ponzi Trifecta Begins?

Posted by Equity Private, Jan 12, 2009, 2:03pm
What do you do when your life doesn't go as planned? Well, of course, you get in your Piper Pawnee Brave, fly along normally for some time, right before reporting an imploded windshield and profuse bleeding to controllers, and declaring an emergency over Florida swamp land. Set the plane on autopilot 2,000 feet, open the door and jump out with your parachute. On hitting the ground, you walk up to a policeman, complete with skydiving gear and goggles and report that you've been in a canoe accident and give the officer your real driver's license before checking into a local motel with cash under a fake name, donning a "black toboggan cap" and running into the woods next to the motel.

Well, that's not what I'd do exactly. But that's what Marcus Schrenker, 38, from Indiana appears to have done. Police are looking for Schrenker now. have Schrenker in custody now may or may not have Schrenker in custody. I'm sure it has exactly zero to do with his Indianapolis firm,"Heritage Wealth Management." Or Icon Wealth Management.

[babylonsister]

1. Whoa. That's desperate. What's he running from? nt

[hobbit709]

2. Probably the people whose money he stole.

[Liberal_in_LA]

4. Not sure if it's the same company but website says they invest for affluent folks. Ruh roh!

[babylonsister]

5. Ha! I guess so. All the same, he's not a very good robber. nt

[The Doctor.]

27. I can't help but think of the line from 'History of Violence'

when the Viggo Mortensen character is seated in a chair, the guy with the garrot comes up behind him, and tries to strangle him to death but fails. "Joey", played by Viggo escapes, and "Richie" (William Hurt) stands over the would-be assasin writhing in pain on the floor and says; "HOW do you fuck that up?!?"

Then he shoots him.

How the hell do you fuck something like this up this badly?

[sarcasmo]

44. Bingo.

[Ex Lurker]

10. He probably expected the plan to crash in the gulf of mexico

without a trace. Instead he's on the run and looking extremely stupid.

[KharmaTrain]

15. Maybe A Call From A Friendly FBI Agent...

Supposedly there is an investigation going on about various frauds out there. I'm not sure I'd call this guy a chickenshit (even though I just did) cause he not only was on the run from his investors, but from himself (and family) as well. As Olbermann has said, one day this scandal will be called "why daddy went to jail".

:hi:

[babylonsister]

16. Hi,

Kharma Train! I thought you only came out in the morning. ;)

Yes, I imagine about now he's got loads of people chasing him. Greed is not good.

:hi:

[KharmaTrain]

18. I'm Always Around...

I just keep to myself a lot around here... :rofl:

The only thing missing from this story is the millions he has stashed away somewhere. You'd think if this guy had thought this out, he'd a have a big reason to do it. Call it the DB Cooper complex. :rofl:

[PfcHammer]

23. I can haz DB Coooper's M.O. ?

:rofl:

[wolfgangmo]

22. Not all investors are nice...

... I imagine he is try to avoid being fitted for a cement overcoat for his next swim.

Or maybe he is trying to make the border so he can get to the Caymans.

[PM Martin]

3. Bernard Madoff is thinking right now,

"Why didn't I do that?" :think:

[CoffeeCat]

6. Maybe it was performance art...

...and he was showing us his interpretation of "trickle-down economics".

[liberalmuse]

7. We're going to see a lot more of this kind of thing.

Run, bankers, run!

Maybe they can all go to that island where Ken Lay is living.

[monmouth]

8. Any group with the name "Heritage" in it should be avoided at all cost....n/t

[HillWilliam]

14. From your lips to Ifni's ears n/t

[Art_from_Ark]

38. Kind of like avoiding retail establishments

with "Honest" in the name

[Vinnie From Indy]

9. Heritage Wealth Management used to get mentions on NPR and Public Radio as a Sponsor

I think there are a lot of wealthy, GOP voting white folk in Indianapolis that are going to have their "road to Damascus" moment in regard to government deregulation and oversight. I am sure there are a few that will believe they have just lost their money because of them damn poor people getting houses with no income. At least that is what OxyRush will tell them.

[Robbien]

11. Update: Pilot's company faced $533,564 federal judgment

A company owned by a pilot who intentionally abandoned his plane Sunday over Alabama was recently ordered by a federal court in Maryland to pay a $533,564 to OM Financial Life Insurance Company.

The default judgment against Marcus Schrenker's Heritage Wealth Management Inc. was issued on Friday. According to the Indiana Secretary of State's office, Schrenker is president of the company, which is based in Indianapolis.

In May of 2007, Baltimore-based OM Financial Life Insurance Company filed suit against Schrenker and his Heritage Wealth Management company claiming "unjust enrichment." The company claimed the defendants repeatedly failed to pay back "unearned" commissions they received relating to OM Financial products. The defendants sold insurance and/or annuity plans for OM Financial.

"Defendants have refused to return, and did not return, the $433,314 in commissions paid to them by OM Financial arising out of products that were surrendered, lapsed, reversed and/or free-looked within the chargeback period," an amended claim reads.

http://blog.al.com/spotnews/2009/01/pilots_company_faced_half_mill.html

[MajorChode]

24. The plane was worth more than that

So the loss to whatever bank held the note on the plane will compound the losses this jackass is responsible for.

[Shardik]

12. Now this is a new take on a "golden parachute."

[Supply Side Jesus]

26. love it!

thats great!

[DemoTex]

13. Shades of the Thomas Root Affair (July 13, 1989).

What really happened to Thomas L. Root on his mysterious 1,000-mile flight may never be known. But what happened in the weeks before the lawyer-pilot took off from National Airport here on July 13 is becoming clearer.

Since Mr. Root's plane spiraled into the Atlantic off the Bahamas and hand-lettered signs sarcastically saying ''Root Lives'' began sprouting in the Federal Communications Commission courtrooms where he practiced, communications lawyers and F.C.C. officials say they now realize they had seen the 36-year-old Mr. Root's life accelerating toward an unknown abyss.

On July 13, rescue planes followed Mr. Root's Cessna 210 Centurion for nearly six hours as it flew, apparently on automatic pilot with him unconscious at the controls, southeast over the Atlantic until it appeared to run out of fuel and plunge into the sea. When Mr. Root was rescued, it was discovered he had been shot in the abdomen. (More ..)

http://query.nytimes.com/gst/fullpage.html?res=950DEFD91739F937A15754C0A96F948260&sec=&spon=&pagewanted=all

Thomas L. Root, the former Washington broadcast attorney who made national headlines by surviving a 1989 plane crash off the Bahamas and a mysterious gunshot wound, is in trouble again. Root, who was sentenced to prison in 1992 for a radio-licensing scam that bilked investors out of millions, now faces fraud charges in Ohio.

He was disbarred after lying to regulators and misusing investors' funds ostensibly raised to apply for and construct new FM radio ...

http://findarticles.com/p/articles/mi_hb5053/is_200104/ai_n18367790

March 21, 2007 - United States Attorney Patrick L. Meehan today announced the filing of an eight-count indictment* charging Thomas L. Root, 53, with one count of conspiracy, one count of tax evasion, and seven counts of filing false tax returns related to his execution of a scheme to evade the payment of taxes on more than $500,000 of taxable income. The indictment alleges that Root, a disbarred attorney, and Francis D. McCracken conspired to hide the payment of commissions to them while they were employed by WTVE, a television station in Reading, Pennsylvania. McCracken was employed as the president of the television station and Root was employed as the station’s “special projects director.” The indictment also alleges that Root evaded the payment of taxes on tens of thousands of dollars in taxes on income Root earned for legal research and other work he did.

If convicted, the defendant faces up to 31 years imprisonment, up to three years supervised release, and a $2.25 million fine.

http://www.usdoj.gov/usao/pae/News/Pr/2007/mar/root.html

"You're in trouble now, Root!" Thus spake the wife of Thomas L. Root on national television shortly after his Cessna 210 escapade in July 1989. They were subsequently divorced.

Root was a right-wing lawyer who specialized in representing Christian radio station in cases before the FCC. "At the heart of Mr. Root's problems was a relationship he forged in 1986 with a Georgia management company that assembled small investors into applicant groups that then applied for licenses to operate FM radio stations. The company, Sonrise Management Services Inc., paid Mr. Root to represent about 150 of the groups, according to lawyers and court documents," according to the NY Times (emphasis mine).

"Sonrise Management" .. get it?


Cessna 210

[phoebe]

17. possibity the same man might have been involved in a case with Delta Airlines

where he tried to influence the pilot retirement/Delta bankruptcy issue.

http://www.deltadocket.com/delta_downloads/delta_downloads_root/omnibus_reply.pdf

snip

49. Of course, Mr. Schrenker does not even purport to have been objective
with respect to the goals of the organization on whose behalf he conducted the study. Mr.
Schrenker is a founding member of DPPTO and Mr. Schrenker testified at his deposition
that his company donated $25,000 and the use of its aircraft to the organization. See id.
38 : 7 -38:10. DPPTO does not even try to suggest that the purpose of the study was to
conduct an objectively accurate and methodologically sound study. Instead, as Mr.
Morrison testified, the point of doing the survey was to substantiate our position
because DPPTO had to somehow prove that was a lie. Morrison
Dep. 57 : 7 -15.
16

[malaise]

19. Did no one tell him that Samuel Israel was caught

after stealing over $400M and then faking his suicide.

[lonestarnot]

20. Bizarre.

[Mari333]

21. Its happening a lot more then people think

one of the big developers here in my town , who was also a GOP candidate for state rep. has changed his last name so that the creditors have a hard time finding him. a lot of these guys like this guy kept buying up land and developing on it, and borrowing against their developments to buy more, and when the house of cards collapsed they are in the toilet, moneywise.
someone told me the guy in my town hides in his office when people come to the door. i doubt if changing his last name will help him much.

[musiclawyer]

25. Obviously, guy is not that bright

If you're going to fake your death, you need to do it right and disappear.

[bvar22]

28. Not a big enough thief ...

....to pull off a "Kenny Boy" Lay.

[jazzjunkysue]

29. This is going to be entertaining.

:popcorn:

[phoebe]

30. more on Marcus James Schrenker who was in Ohio for a while

http://www.securities.state.oh.us/Bulletin/BUL991.pdf

snip

MARCUS JAMES SCHRENKER
On January 12, 1999, the Division
issued Order No. 99-019, a Final Order, to
Marcus James Schrenker. The Respondent’s
business residence is in Indiana. The Order
granted the Respondent a securities salesman
license.
On August 4, 1998, the Division issued
Division Order No. 98-304, Notice of
Intent to Deny Securities Salesman License
and Notice of Opportunity for Hearing, to
Marcus James Schrenker. The Division alleged
that the Respondent was not of “good
business repute” as that phrase is used in
Ohio Revised Code sections 1707.16 and
1707.19 and Ohio Administrative Code Rule
1301:6-3-19(D)(3), (6), (7) and (9). Pursuant
to Ohio Revised Code Chapter 119, the
Respondent timely requested an adjudicative
hearing. Whereas, pursuant to Ohio Revised
Code Chapter 119, a hearing was granted
and the Hearing Officer found in the
Respondent’s favor. The Division confirmed
and approved the report and recommendation
of the Hearing Officer. Therefore, it was
ordered that the Respondent, upon compliance
with all other applicable requirements of
the Ohio Securities Act and related administrative
rules, be granted a license as a salesman of securities

[onethatcares]

31. guess he didn't care what the plane did after he left

I mean, hell, those things hurt when they fall out of the sky. Any idea where it crashed?

[donco]

32. In the olden days they used to

jump off of tall buildings, oh well.:shrug:

[Junkdrawer]

33. A poor man's Key Lay...

Don't try this at home...

[AwakeAtLast]

34. Was Jack Bauer with him?

:rofl:

Anyway, yup, he's a Hoosier. :banghead:

[Fire1]

35. There's gonna be plenty more!

[anigbrowl]

36. LOL fail

[Nye Bevan]

37. Finally. A multi-million dollar fraudster with a bit of imagination.

Confessing evrything to your sons and then willingly co-operating with the police, like Madoff did? Pathetic. Pretending to commit suicide from a bridge while running off to hide for 2 weeks in a *trailer park* in Masachussetts, like that other hedge fund guy did? Utterly lame. But faking a distress call and bailing out of your plane? Much more promising. Now if he only makes it to Brazil to try to get some plastic surgery, with a somewhat crooked investigator on his tail, and perhaps gets mixed up with some corrupt local law enforcement or organized crime, and romantically entangled with a mysterious bikini-wearing Brazilian babe, who may or may not be what she first appears, there could actually be the makings of an interesting movie here.

[malaise]

39. Latest report

http://www.msnbc.msn.com/id/28623108/
<snip>
The search for an Indiana businessman who may have tried to fake his own death in a plane crash to escape financial problems took another cinematic turn Tuesday when investigators said he fled on a red motorcycle.

After searching the Alabama woods where Marcus Schrenker, 38, apparently bailed out of his small plane before letting it coast on autopilot to crash in Florida, investigators discovered that he'd stashed a red motorcycle inside a storage unit a day before the crash. The bike is gone, and his clothes were left behind.

"He could be anywhere at all. Within 10 hours he could be in New Orleans, halfway to Houston, in Atlanta, anywhere," said Harpersville Police Chief David Latimer.

"I believe he's out of the U.S.," Latimer said. "... He jumped out an airplane and left it to crash who knows where. He's shown a total disregard for human life. I think he'd do anything to get away."

Schrenker's disappearance perplexed authorities in three states as they scrambled to put together the pieces of what looked like an elaborate plan sketched out to escape financial doom. In the days before the crash, Schrenker's home and business had been searched by authorities probing his financial management businesses, his wife filed for divorce, his stepfather died and a court in Maryland entered a half-million-dollar judgment against him.


One more empty Mcmansion


Cocky bastard

[Liberal_in_LA]

40. Thanks for the update. I'm waiting to hear if there are outraged investors. what's happening with

his company?

[malaise]

42. Who knows?

Haven't seen anything new. I'm betting there are hundreds of outraged investors.

[scheming daemons]

41. George Bush's America created this guy... and there will be many more...

In 1929, they jumped out of windows.

Today, they're too cowardly to kill themselves, so they're faking their deaths.

[malaise]

43. He'll come back as a pastor of a mega-church

:D

gr.

[jackpan1260]

45. Here is the Heritage Wealth website:

http://www.heritage-wealth.com/index.html

[malaise]

46. More here

http://www.msnbc.msn.com/id/28623108/page/2/
<snip>
Authorities in Indiana have been investigating Schrenker's businesses on allegations that he sold clients annuities and charged them exorbitant feeds they weren't aware they would face.

State Insurance Commissioner Jim Atterholt said Schrenker would close the investors out of one annuity and move them to another while charging them especially high "surrender charges" — in one case costing a retired couple $135,000 of their original $900,000 investment.

The tangled web of Schrenker's financial affairs began to unravel more than two years ago.

The aviation buff had convinced dozens of active and retired Delta Air Lines pilots to allow him to manage their retirement accounts. In 2006, with Delta in federal bankruptcy proceedings, he convinced a group of pilots opposed to Delta's move to terminate their pension plan to let him help.

Smith believes Schrenker may have been running from a past unknown to many of his clients at the time, a past that was disclosed just days earlier in a deposition of him by a Delta lawyer.

"They uncovered things that literally made your jaw open," Smith said. "I believe he was scared to death that Delta was going to expose him."
----------------
This SOB preyed on trusting retirees.

[Liberal_in_LA]

47. Wow... He's messed the retirement plan for Delta Pilots.

[malaise]

48. I'm curious about his previous business

People appear to be really gullible.