1 00:00:01,910 --> 00:00:04,390 This is a CNBC original. 2 00:00:10,970 --> 00:00:15,010 In this episode of American Greed, Marcus Schrenker. 3 00:00:15,270 --> 00:00:16,430 Remember this guy? 4 00:00:16,710 --> 00:00:20,930 The plane crashed in Milton, Florida Sunday night. He was a stunt pilot. 5 00:00:21,370 --> 00:00:25,590 Basically, it's a very high -G routine that has a lot of gyroscopic recession. 6 00:00:26,070 --> 00:00:28,570 I've seen him do a few things in the airplane that were... 7 00:00:29,439 --> 00:00:33,700 Boy, this guy knows what he's doing. And clients say a con man. 8 00:00:33,980 --> 00:00:39,120 People trusted him, in some cases with a million dollars. Who had the country 9 00:00:39,120 --> 00:00:42,560 wondering for days whether he was dead or alive. 10 00:01:01,580 --> 00:01:05,620 Long range, I think we're in for a tough fall. The American economy is in 11 00:01:05,620 --> 00:01:08,060 trouble. January of 2009. 12 00:01:08,540 --> 00:01:12,540 The nation is reeling from the worst financial meltdown since the Great 13 00:01:12,540 --> 00:01:16,980 Depression. And there is an astounding decline in business in the country. On 14 00:01:16,980 --> 00:01:19,520 Wall Street, the stock market is in free fall. 15 00:01:19,860 --> 00:01:22,600 On Main Street, home prices are plummeting. 16 00:01:22,980 --> 00:01:27,800 And inside a million -dollar house near Indianapolis, a money manager named 17 00:01:27,800 --> 00:01:31,120 Marcus Schrenker is ignoring the phone that rings off the hook. 18 00:01:31,580 --> 00:01:36,120 Many of his clients were expressing concern about the rather dour economic 19 00:01:36,120 --> 00:01:40,420 outlook, and then they began contacting Marcus, and suddenly they weren't able 20 00:01:40,420 --> 00:01:44,380 to get a hold of him. He wasn't returning their phone calls. He'd have 21 00:01:44,380 --> 00:01:47,840 of excuses why he couldn't get in touch with them. 22 00:01:48,720 --> 00:01:50,940 On January 11, 2009, 23 00:01:51,820 --> 00:01:54,940 Schrenker tells his family he's going on a brief trip. 24 00:01:55,280 --> 00:01:59,340 An avid pilot, he boards his single -engine Piper Malibu. 25 00:01:59,720 --> 00:02:02,040 planning to fly solo to Florida. 26 00:02:02,700 --> 00:02:09,680 There was an enormous amount of stress in the weeks and days leading up to his 27 00:02:09,680 --> 00:02:15,500 flight to Florida. It was a very stressful period for him that he was on 28 00:02:15,500 --> 00:02:19,820 medications, and as he said, he was not in his right mind. 29 00:02:21,400 --> 00:02:24,280 Schrenker lifts off around 6 .30 p .m. 30 00:02:24,880 --> 00:02:29,670 With just a little under two hours into the flight, He sends out a Mayday call. 31 00:02:32,470 --> 00:02:33,090 And 32 00:02:33,090 --> 00:02:40,490 that's 33 00:02:40,490 --> 00:02:44,390 the last communication Marcus Schrenker had with the Coast Guard. 34 00:02:44,610 --> 00:02:49,110 Thirty minutes later, Schrenker's plane crashes in a wooded area near Milton, 35 00:02:49,230 --> 00:02:50,230 Florida. 36 00:02:50,810 --> 00:02:55,310 Rescue crews arrive, but the twisted wreckage they find doesn't match the 37 00:02:55,310 --> 00:02:56,310 distress call. 38 00:02:56,590 --> 00:02:58,190 The plane's windshield is intact. 39 00:02:58,550 --> 00:02:59,610 There's no blood. 40 00:02:59,950 --> 00:03:03,170 And more importantly, there's no pilot. 41 00:03:03,850 --> 00:03:08,990 As his face is splashed on TV screens around the world, a fascinated public 42 00:03:08,990 --> 00:03:12,210 wonders, where is Marcus Schrenker? 43 00:03:12,530 --> 00:03:14,970 Is he dead or alive? 44 00:03:17,090 --> 00:03:21,890 Schrenker grows up in a small town in Indiana. From the beginning, he seems 45 00:03:21,890 --> 00:03:24,770 restless, always in a hurry to get somewhere else. 46 00:03:25,230 --> 00:03:28,830 If I could take a snapshot of him, it'd be that he was climbing all the time, 47 00:03:28,850 --> 00:03:30,790 trying to climb all the time, going somewhere. 48 00:03:31,110 --> 00:03:36,350 In 1996, Schranker graduates from Purdue University, having studied both 49 00:03:36,350 --> 00:03:38,110 financial planning and aviation. 50 00:03:38,730 --> 00:03:44,050 Just out of school, he launches Heritage Wealth Management, a financial planning 51 00:03:44,050 --> 00:03:46,730 firm focused on low -risk investments. 52 00:03:47,310 --> 00:03:50,390 So they were fairly safe investments to be handled. 53 00:03:50,890 --> 00:03:53,910 Qualified money and retirement accounts and things like that that really 54 00:03:53,910 --> 00:03:58,330 couldn't be manipulated or done badly with. 55 00:03:58,690 --> 00:04:01,010 Schrenker's money management business grows. 56 00:04:01,270 --> 00:04:06,750 He marries, has kids, and settles into the Geist neighborhood north of 57 00:04:06,750 --> 00:04:10,470 Indianapolis, a moneyed enclave of the city's elite. 58 00:04:11,270 --> 00:04:15,910 You know, Geist is an interesting place. You have a lot of new money. 59 00:04:16,250 --> 00:04:20,190 You have a lot of people who are doctors and lawyers and athletes. And so 60 00:04:20,190 --> 00:04:24,970 they're kind of drawn, I think, because of the opulence, the extravagance of the 61 00:04:24,970 --> 00:04:27,730 homes out there, and because of the lake. 62 00:04:28,070 --> 00:04:32,290 There's no denying that there's a lot of wealth out there, and I think people 63 00:04:32,290 --> 00:04:33,370 are attracted by that. 64 00:04:34,130 --> 00:04:36,770 Always one to hunt for new investment clients, 65 00:04:37,470 --> 00:04:42,350 Schrager uses his love of aviation to make friends with some commercial pilots 66 00:04:42,350 --> 00:04:44,830 and manage their retirement accounts. 67 00:04:45,600 --> 00:04:47,600 Pilots. Marcus was a pilot. 68 00:04:48,860 --> 00:04:54,100 There was an automatic sort of entree for him. He was able to get in there and 69 00:04:54,100 --> 00:05:00,180 meet these people, get on their good side, trust me, I'll do the right thing 70 00:05:00,180 --> 00:05:06,800 you. In 2002, Mike Kenney's brother, a commercial pilot, introduces him to Mark 71 00:05:06,800 --> 00:05:11,820 Schranker. Kenney has a significant investment portfolio and is looking for 72 00:05:11,820 --> 00:05:12,820 new money manager. 73 00:05:13,290 --> 00:05:17,890 He seemed like a very intelligent, very knowledgeable person about what he was 74 00:05:17,890 --> 00:05:18,749 talking about. 75 00:05:18,750 --> 00:05:23,550 He proclaimed that we only put our clients in the best of the best. Best of 76 00:05:23,550 --> 00:05:25,530 best. That was the term that was used quite a bit. 77 00:05:25,930 --> 00:05:29,890 Schrager tells Kinney he makes money only from a flat percent he charges 78 00:05:29,890 --> 00:05:32,330 clients. It sounds like a good arrangement. 79 00:05:32,710 --> 00:05:39,410 You pay me for my performance, fee -based advice. He declared very much up 80 00:05:39,410 --> 00:05:41,990 front, I do not make commissions on anything I sell. 81 00:05:42,810 --> 00:05:46,170 And that was the relationship that I'd come from from the previous advisor, and 82 00:05:46,170 --> 00:05:48,930 that was one of the things I was uncomfortable with. So that really 83 00:05:48,930 --> 00:05:53,830 ear. And I liked the idea that he would be paid based on how well he did for me 84 00:05:53,830 --> 00:05:55,750 and how well he managed my investments. 85 00:05:56,030 --> 00:05:58,770 That's what I wanted, and he was very big in saying that. 86 00:05:59,090 --> 00:06:03,870 Schreinker says he only makes money if his clients make money, taking the 87 00:06:03,870 --> 00:06:10,050 standard 1%. Before long, Mike, his brother, and several relatives all have 88 00:06:10,050 --> 00:06:11,990 their money managed by Schreinker. 89 00:06:12,600 --> 00:06:17,780 Very safe funds that had good return values on them. And that was what 90 00:06:17,780 --> 00:06:23,240 me. As Kenny will later find out, Schrenker is doing precisely the 91 00:06:23,240 --> 00:06:24,219 what he's promised. 92 00:06:24,220 --> 00:06:29,140 Rather than investing in mutual funds and charging no commissions, Schrenker 93 00:06:29,140 --> 00:06:33,940 putting Kenny's money into annuities, low -risk insurance products with high 94 00:06:33,940 --> 00:06:35,960 commissions for the selling agent. 95 00:06:36,440 --> 00:06:40,180 And worse, investigators say Schrenker is churning. 96 00:06:40,620 --> 00:06:45,120 moving Kinney's money from account to account, maximizing his commissions. 97 00:06:45,700 --> 00:06:50,480 Churning is usually a behavior by agents where they put money into an annuity, 98 00:06:50,620 --> 00:06:54,780 and then they go ahead and surrender it within, you know, a couple of years and 99 00:06:54,780 --> 00:06:56,160 put it into yet another annuity. 100 00:06:56,580 --> 00:07:00,660 Churning costs his clients huge surrender fees for early withdrawal. 101 00:07:01,040 --> 00:07:03,480 But Schrenker seems blinded by greed. 102 00:07:04,010 --> 00:07:08,290 Marcus Schrenker can earn anywhere from 6 % to 18 % of the contract value on 103 00:07:08,290 --> 00:07:11,470 commissions. So each and every annuity that they sell, they get that 104 00:07:12,030 --> 00:07:15,650 Schrenker's scheme is bringing in lots of money, but he wants more. 105 00:07:16,070 --> 00:07:19,090 And like magic, opportunity knocks on his door. 106 00:07:21,490 --> 00:07:24,970 Rumors are flying that Delta Airlines will be filing for bankruptcy. 107 00:07:25,510 --> 00:07:29,030 Its home base is in Atlanta, the busiest airport in the world. 108 00:07:30,140 --> 00:07:34,620 Suddenly, thousands of pilots will be nudged into early retirement and given 109 00:07:34,620 --> 00:07:35,960 lump sum payouts. 110 00:07:36,260 --> 00:07:41,080 There's nothing more scary than having seven figures of money and not knowing 111 00:07:41,080 --> 00:07:42,080 what to do with it. 112 00:07:42,220 --> 00:07:46,000 So I started asking around, hey, do you have a guy that's doing your money? And 113 00:07:46,000 --> 00:07:51,220 one of my favorite co -pilots, he said, I would trust him with my kids. That's 114 00:07:51,220 --> 00:07:52,340 how much I trust this guy. 115 00:07:52,760 --> 00:07:54,280 I said, who was that guy? 116 00:07:54,920 --> 00:07:56,420 It was Marcus Schrenker. 117 00:07:57,770 --> 00:08:00,030 Dave Smith is one of those pilots. 118 00:08:00,370 --> 00:08:03,030 He flew for Delta for almost 29 years. 119 00:08:03,430 --> 00:08:05,310 He's educated and well -trained. 120 00:08:05,710 --> 00:08:10,350 But he'd be the first to admit that he has more money than financial savvy. 121 00:08:10,910 --> 00:08:15,410 When he sits down with Marcus Schrenker, his financial unease seems to 122 00:08:15,410 --> 00:08:19,570 disappear. It's funny how the mind works. You think you're above all this 123 00:08:19,730 --> 00:08:23,570 The guy just flew it in an airplane you'd give your right arm to own. And 124 00:08:23,570 --> 00:08:26,070 wearing the right shoes and the good Rolex. 125 00:08:27,000 --> 00:08:30,740 Sits down and talks quietly and has all the answers. 126 00:08:31,240 --> 00:08:33,740 Wow, I'm glad to have him on my team, you know? 127 00:08:34,340 --> 00:08:35,340 Yeah. 128 00:08:35,600 --> 00:08:40,720 Tranker signed Smith up, but there are many more Dave Smiths to put on his 129 00:08:40,720 --> 00:08:47,420 card. There were seven -figure crops to be harvested out of this 130 00:08:47,420 --> 00:08:51,740 retiring group of guys, and all he had to do was get here, get among them. 131 00:08:51,940 --> 00:08:53,760 So he literally moved to Atlanta. 132 00:08:55,689 --> 00:09:00,690 Next on American Greed, when Marcus Schrenker hits financial turbulence, his 133 00:09:00,690 --> 00:09:04,450 clients get white -knuckled and want to know, where's their money? 134 00:09:04,910 --> 00:09:08,350 You've been charged those surrender charges. That money is gone forever. 135 00:09:21,060 --> 00:09:25,740 In 2005, Marcus Schrenker's financial planning business is taking off. 136 00:09:26,160 --> 00:09:31,660 He's tapped into a rich vein, managing the retirement funds of former airline 137 00:09:31,660 --> 00:09:37,100 pilots. Marcus had a relationship. He could go down there and they could talk 138 00:09:37,100 --> 00:09:42,280 about things that his clients loved, and they were Delta pilots. 139 00:09:42,500 --> 00:09:45,720 And then, of course, hey, I'm an investment representative. 140 00:09:47,550 --> 00:09:52,510 According to Schrenker, he has almost 500 clients, and he's managing well over 141 00:09:52,510 --> 00:09:53,510 $6 million. 142 00:09:54,690 --> 00:09:59,930 Business is so good, Schrenker moves his family to Atlanta, a city teeming with 143 00:09:59,930 --> 00:10:01,810 retired Delta Airlines pilots. 144 00:10:02,330 --> 00:10:06,550 I think he went down there because there was money to be made. Schrenker pitches 145 00:10:06,550 --> 00:10:10,470 himself as a low -key guy with a cautious approach to investing. 146 00:10:10,850 --> 00:10:13,210 He gives all his clients the same pitch. 147 00:10:13,600 --> 00:10:17,560 He doesn't charge commissions, only a standard 1 % management fee. 148 00:10:17,980 --> 00:10:21,040 And he puts their money into low -risk mutual funds. 149 00:10:22,140 --> 00:10:26,080 Mike Kenney has more than half a million dollars with Schrenker. It was the 150 00:10:26,080 --> 00:10:31,040 majority of my net worth, both liquid and in, you know, like retirement type 151 00:10:31,040 --> 00:10:32,040 stuff. 152 00:10:32,240 --> 00:10:36,060 He proclaimed he was going to put it in very safe funds that had good return 153 00:10:36,060 --> 00:10:37,460 values on them. 154 00:10:37,860 --> 00:10:39,440 And that was what attracted me. 155 00:10:40,750 --> 00:10:46,130 Dave Smith, the retired Delta pilot, has given Schrenker $1 million to invest. 156 00:10:46,890 --> 00:10:52,050 Smith says Schrenker used fear to lure him in, talking doom and gloom. 157 00:10:52,770 --> 00:10:56,530 We've got the Olympics coming up, and we've got a presidential election coming 158 00:10:56,530 --> 00:11:00,430 up. Our intelligence department tells us there could be a major terrorist attack 159 00:11:00,430 --> 00:11:02,350 in any one of those things. 160 00:11:02,590 --> 00:11:07,110 If that happens, this market is going to go through the floor. 161 00:11:07,610 --> 00:11:10,810 He then offers a financial security blanket. 162 00:11:11,130 --> 00:11:13,090 We've got to do something to protect your money. 163 00:11:13,990 --> 00:11:18,290 I've got a plan I think I can get you in. We heard last it was closed, but I 164 00:11:18,290 --> 00:11:19,670 think I can get you in this. 165 00:11:20,010 --> 00:11:22,230 So now you're just in a total panic mode. 166 00:11:22,570 --> 00:11:24,190 What am I going to do? What am I going to do? 167 00:11:24,850 --> 00:11:29,230 Well, it turns out, under the wire, we're going to be able to get into this 168 00:11:29,230 --> 00:11:34,030 investment. Schrenker describes the investment as a type of mutual fund that 169 00:11:34,030 --> 00:11:36,290 will never make less than 3 % a year. 170 00:11:36,730 --> 00:11:41,330 Even in the worst of times, Smith hands over his entire nest egg. 171 00:11:41,910 --> 00:11:44,690 The catastrophes never materialize. 172 00:11:45,530 --> 00:11:50,730 Instead, the stock market slowly climbs in 2003 and 2004. 173 00:11:51,250 --> 00:11:53,290 But Schrenker is making money. 174 00:11:53,510 --> 00:11:54,870 His clients are, too. 175 00:11:55,070 --> 00:11:57,270 And they're all getting along famously. 176 00:11:59,430 --> 00:12:04,390 Dave Smith lives in Roswell, Georgia, a city steeped in Civil War history. 177 00:12:05,199 --> 00:12:09,260 And few people know that that Confederate gray was actually called 178 00:12:09,720 --> 00:12:11,960 And they made those uniforms right here in town. 179 00:12:12,220 --> 00:12:16,240 So when he and the kids and wife came down here, we would go and look at this 180 00:12:16,240 --> 00:12:22,200 stuff. And there's beautiful streams with the waterfalls and the ruins, you 181 00:12:22,200 --> 00:12:23,300 know, old Civil War ruins. 182 00:12:23,540 --> 00:12:25,840 And so we did a lot together. 183 00:12:27,320 --> 00:12:30,620 But friends also notice quirks about his personality. 184 00:12:31,020 --> 00:12:34,040 For instance, he has almost no sense of humor. 185 00:12:34,890 --> 00:12:37,970 Jokes would just ding by Marcus like he was in a battlefield. 186 00:12:38,890 --> 00:12:42,770 But he was the lucky guy in the battlefield because nothing ever hit 187 00:12:43,170 --> 00:12:45,070 And he actually had a fake laugh. 188 00:12:45,570 --> 00:12:49,750 And everybody in the room would be dying laughing over something going on, and 189 00:12:49,750 --> 00:12:51,490 he'd be ha -ha -ha -ha -ha. 190 00:12:51,890 --> 00:12:54,990 Schreiker also seems obsessed with his personal appearance. 191 00:12:55,630 --> 00:12:59,390 I've got a little beagle puppy. I defy anybody to come up with anything cuter 192 00:12:59,390 --> 00:13:00,950 than a brand -new little beagle puppy. 193 00:13:04,320 --> 00:13:10,560 stands up and puts her little feet on his pants. And he jumped back, brushed 194 00:13:10,560 --> 00:13:14,820 pants off, and he said, I'll never forget it. He goes, this is a $2 ,000 195 00:13:15,060 --> 00:13:19,980 And I thought, yeah, and that's a $200 puppy. What do I care about your suit? 196 00:13:20,580 --> 00:13:23,120 Smith shrugs it off as harmless vanity. 197 00:13:23,400 --> 00:13:28,400 I think it came down to the fact that people trusted him. There was a level of 198 00:13:28,400 --> 00:13:31,220 trust that he was able to gain very quickly. 199 00:13:31,640 --> 00:13:33,020 A real talent for him. 200 00:13:34,060 --> 00:13:37,700 But his clients are about to learn the consequences of trusting Marcus 201 00:13:37,700 --> 00:13:38,700 Schrenker. 202 00:13:39,040 --> 00:13:44,340 Trouble appears in 2006, when Dave Smith opens his annual statement from the 203 00:13:44,340 --> 00:13:46,620 company Schrenker has his money invested with. 204 00:13:47,440 --> 00:13:52,840 Smith's statement reveals that he's been charged more than $66 ,000 in surrender 205 00:13:52,840 --> 00:13:53,840 fees. 206 00:13:54,060 --> 00:13:56,040 Panicked, he calls Schrenker. 207 00:13:56,280 --> 00:13:57,280 What is that? 208 00:13:57,340 --> 00:13:58,480 Well, that's taxes. 209 00:13:59,440 --> 00:14:00,920 Taxes? What do you mean, taxes? 210 00:14:01,140 --> 00:14:02,420 Well, Dave, you know, you... 211 00:14:02,700 --> 00:14:04,420 pay taxes on everything. It's just the way it is. 212 00:14:05,180 --> 00:14:11,500 Finally, I began to realize he is stammering. I decided to heck with it. 213 00:14:11,500 --> 00:14:12,500 calling the company. 214 00:14:12,540 --> 00:14:17,100 He's shocked to learn that he's locked into a 25 -year annuity, and Schrenker 215 00:14:17,100 --> 00:14:22,000 has withdrawn 30 % of his money, $300 ,000, after only a year. 216 00:14:22,460 --> 00:14:26,680 The $66 ,000 is in taxes. It's surrender fees for early withdrawal. 217 00:14:27,300 --> 00:14:28,960 Smith confronts Schrenker. 218 00:14:29,440 --> 00:14:31,140 Who told you that? He said. 219 00:14:31,550 --> 00:14:34,670 A woman by the name of, I believe her name is Christy. 220 00:14:35,130 --> 00:14:39,690 She goes, Dave, she's just a clerk. She doesn't know what this is. She thinks 221 00:14:39,690 --> 00:14:42,410 that you're an off -the -street investor. 222 00:14:43,230 --> 00:14:45,770 This thing is an institutional investment. 223 00:14:46,730 --> 00:14:48,330 There are no surrender charges. 224 00:14:48,850 --> 00:14:49,970 Look, I'll clear it up. 225 00:14:50,510 --> 00:14:53,310 I'll call her. Well, maybe I should call her back. No, no, I'll take care of it. 226 00:14:53,370 --> 00:14:56,250 I'll clear it up. And so I talked to her. 227 00:14:56,590 --> 00:14:57,590 It's fine. 228 00:14:57,910 --> 00:15:00,110 They're putting the money back. Everything's fine. Don't worry about it. 229 00:15:00,720 --> 00:15:02,620 Oh, wow, okay, that's great. 230 00:15:04,180 --> 00:15:09,860 Smith says he later called the insurance company again to confirm that the $66 231 00:15:09,860 --> 00:15:12,060 ,000 had been refunded. 232 00:15:12,380 --> 00:15:15,180 The response was not the one he's hoping to hear. 233 00:15:15,680 --> 00:15:20,160 Mr. Smith, you're in this annuity, it's this way. I don't know what this guy is 234 00:15:20,160 --> 00:15:22,140 telling you, but this is what it is. 235 00:15:23,120 --> 00:15:27,820 And you've been charged those surrender charges. That money is gone forever. 236 00:15:28,200 --> 00:15:29,420 And it gets worse. 237 00:15:30,270 --> 00:15:35,010 Smith says without his knowledge, Schrenker has already moved $100 ,000 of 238 00:15:35,010 --> 00:15:37,230 nest egg into yet another annuity. 239 00:15:37,910 --> 00:15:42,530 Every time he takes money out of one of Smith's annuities, Smith is hit with a 240 00:15:42,530 --> 00:15:45,430 big penalty, and Schrenker is on a roll. 241 00:15:46,270 --> 00:15:50,610 According to the Indiana State's investigators, he's moving Smith's money 242 00:15:50,610 --> 00:15:51,730 like a pinball game. 243 00:15:52,050 --> 00:15:58,070 Every time he does it, he makes at least a 13 % commission, and he does it over 244 00:15:58,070 --> 00:15:59,070 and over again. 245 00:16:00,430 --> 00:16:04,950 When we began to peel back the layers of what he had done to us in the fall of 246 00:16:04,950 --> 00:16:08,870 06, we were sick. I mean, it was just a sickening feeling. 247 00:16:09,370 --> 00:16:14,830 Every family member, as we were confronted with what he was doing, 248 00:16:14,830 --> 00:16:18,470 believe it, even myself at first. It's like, I'm going, no, man, he wouldn't be 249 00:16:18,470 --> 00:16:19,470 doing that to us. 250 00:16:19,510 --> 00:16:20,510 I mean, it's Marcus. 251 00:16:20,790 --> 00:16:21,790 He's a good guy. 252 00:16:22,410 --> 00:16:24,710 But yet, it became undeniable. 253 00:16:25,010 --> 00:16:28,590 Kenny loses $40 ,000 in surrender charges alone. 254 00:16:29,100 --> 00:16:33,400 He was certainly willing to do anything it took to improve his financial 255 00:16:33,400 --> 00:16:35,360 situation at whatever cost. 256 00:16:35,880 --> 00:16:40,200 All told, Schrenker is raked in almost a million dollars churning accounts, 257 00:16:40,700 --> 00:16:43,460 leaving a wake of financial ruin in Atlanta. 258 00:16:44,040 --> 00:16:48,240 For this southern group of clients, he's the equivalent of Civil War General 259 00:16:48,240 --> 00:16:49,860 William T. Sherman. 260 00:16:50,160 --> 00:16:54,900 All the way through our relationship, and I mean literally till the day we 261 00:16:54,900 --> 00:16:56,600 parted, and even after that. 262 00:16:57,560 --> 00:17:00,940 He swore that he never made any commission on any product. 263 00:17:01,200 --> 00:17:04,819 And when our entire family terminated our relationship with him, that's when 264 00:17:04,819 --> 00:17:07,740 began to move back up to Indianapolis. He thought that the writing was on the 265 00:17:07,740 --> 00:17:08,740 wall for Atlanta. 266 00:17:09,319 --> 00:17:13,760 Next on American Greed, investigators say Schrenker starts a new scam. 267 00:17:14,280 --> 00:17:16,339 But will his past catch up with him? 268 00:17:16,740 --> 00:17:22,520 Looking back on my relationship with Marcus, it was going to take jail to 269 00:17:22,520 --> 00:17:23,520 him. 270 00:17:34,240 --> 00:17:39,200 Marcus Schrenker, a pilot and money manager, has beaten a hasty retreat from 271 00:17:39,200 --> 00:17:40,200 Atlanta. 272 00:17:41,500 --> 00:17:46,340 His clients, primarily a group of retired pilots, say they have discovered 273 00:17:46,340 --> 00:17:48,500 Schrenker was churning their retirement accounts. 274 00:17:49,580 --> 00:17:53,820 He moves their money from account to account, breaking in nearly a million 275 00:17:53,820 --> 00:17:58,600 dollars in commissions and causing his clients to lose hundreds of thousands of 276 00:17:58,600 --> 00:18:00,640 dollars in early withdrawal fees. 277 00:18:02,210 --> 00:18:06,830 Schrenker moves his family back to their original home, an upscale suburb of 278 00:18:06,830 --> 00:18:08,450 Indianapolis called Geist. 279 00:18:09,530 --> 00:18:13,770 Tom Britt is a friend of Schrenker's and the publisher of a local newsletter. 280 00:18:14,070 --> 00:18:19,110 He says Schrenker celebrates his return by building a massive home on the Geist 281 00:18:19,110 --> 00:18:24,950 Reservoir. It was almost a PR spot, the rebranding of Marcus Schrenker in a lot 282 00:18:24,950 --> 00:18:27,350 of respects, because there had been a lot of talk. 283 00:18:28,050 --> 00:18:29,830 Rumors had made their way around the lake. 284 00:18:30,490 --> 00:18:34,070 It's almost like he went through a deep freeze over the winter, and he's coming 285 00:18:34,070 --> 00:18:37,390 back, and now he wanted to kind of reinvent himself. 286 00:18:37,950 --> 00:18:41,490 And Tranker's experience in Atlanta has not slowed him down. 287 00:18:41,910 --> 00:18:43,930 He still dreams of big money. 288 00:18:44,450 --> 00:18:50,210 He came to me one day and said, you know, there's like $14 billion of wealth 289 00:18:50,210 --> 00:18:53,890 Geist, and I want to get as much of that under management as I can. 290 00:18:54,290 --> 00:18:57,690 I think he just realized that he had some connections, he knew some people. 291 00:18:58,490 --> 00:19:03,150 People knew him. I think he saw that as a fertile ground to set up shop. 292 00:19:03,610 --> 00:19:09,530 In 2008, Schrenker adds another investment firm to his family of 293 00:19:09,530 --> 00:19:11,650 the Heritage Wealth Management umbrella. 294 00:19:12,010 --> 00:19:14,270 He calls it the Icon Group. 295 00:19:14,910 --> 00:19:19,510 Promising sound financial planning, the Icon Group claims to have offices in 296 00:19:19,510 --> 00:19:23,190 Singapore, Sao Paulo, and London, among other cities. 297 00:19:23,510 --> 00:19:27,590 In reality, there's only one office in a strip mall in Indianapolis. 298 00:19:28,170 --> 00:19:33,330 His base companies were Heritage Wealth Management and Heritage Insurance 299 00:19:33,330 --> 00:19:37,830 Management. And he combined them into a group called the Icon Group. 300 00:19:38,050 --> 00:19:40,370 I find it rather ironic, Icon. 301 00:19:41,910 --> 00:19:43,570 Sometimes the name says it all. 302 00:19:44,050 --> 00:19:49,530 Under the Icon name, Schrenker starts talking a new product, something he 303 00:19:49,530 --> 00:19:50,650 the Euro Fund. 304 00:19:51,370 --> 00:19:55,440 Schrenker tells investors that with the dollar in a steady decline, There's 305 00:19:55,440 --> 00:19:58,440 money to be made investing in European currency. 306 00:19:58,940 --> 00:20:04,320 He would contact his clients and advise them what a great investment the euro 307 00:20:04,320 --> 00:20:09,240 would be and that the euro was going to be very, very strong and it was a great 308 00:20:09,240 --> 00:20:10,240 business opportunity. 309 00:20:11,100 --> 00:20:15,640 Before long, Schrenker has a million and a half of clients' money in the euro 310 00:20:15,640 --> 00:20:18,280 fund, but his past is close behind. 311 00:20:19,840 --> 00:20:24,920 Schrenker's victims of the Atlanta churning scam have no intention of 312 00:20:24,920 --> 00:20:25,899 without a fight. 313 00:20:25,900 --> 00:20:30,460 When we began to investigate what can we do about this, you begin to see that 314 00:20:30,460 --> 00:20:36,380 lawsuits are very expensive, very uncertain, and hard to do. So what can 315 00:20:36,380 --> 00:20:39,540 to keep him from doing that kind of thing to other people like us? 316 00:20:39,940 --> 00:20:41,880 Because we felt like he was going to keep on doing it. 317 00:20:42,120 --> 00:20:43,760 We went to the Georgia Insurance Commission. 318 00:20:44,220 --> 00:20:47,620 They were, in a word, totally worthless. 319 00:20:49,280 --> 00:20:50,340 Totally worthless. 320 00:20:51,400 --> 00:20:52,720 Well... Good luck. 321 00:20:53,540 --> 00:20:55,460 What are we going to do? What are we going to do? 322 00:20:55,740 --> 00:20:58,840 Indiana. What about Indiana Insurance Commission? 323 00:20:59,180 --> 00:21:05,020 In the summer of 2007, Mike Kenney, Dave Smith, and several other retired pilots 324 00:21:05,020 --> 00:21:07,720 approached the Indiana Department of Insurance. 325 00:21:08,280 --> 00:21:13,420 They provide investigator Lisa Harpenau with evidence documenting Schrenker's 326 00:21:13,420 --> 00:21:14,420 churning scam. 327 00:21:14,660 --> 00:21:15,519 It was... 328 00:21:15,520 --> 00:21:19,200 five - or six -page complaint that referenced attachments and had notes on 329 00:21:19,200 --> 00:21:22,500 attachments and basically walked me through everything that they had went 330 00:21:22,500 --> 00:21:26,460 through. I knew that, okay, I think I've got some evidence now to file a 331 00:21:26,460 --> 00:21:27,419 statement of charges. 332 00:21:27,420 --> 00:21:29,300 That's exactly what Harper now does. 333 00:21:29,580 --> 00:21:32,520 And now Schrenker is obliged to respond. 334 00:21:33,020 --> 00:21:36,500 The response has definitely raised some red flags with me. One of his responses 335 00:21:36,500 --> 00:21:40,020 said, I didn't know there were surrender fees associated with these annuities. 336 00:21:40,180 --> 00:21:43,920 And I knew right there, either he's lying or he doesn't know how to sell an 337 00:21:43,920 --> 00:21:44,980 annuity because... 338 00:21:45,210 --> 00:21:48,590 Any agent that sells annuities knows there's going to be surrender fees 339 00:21:48,590 --> 00:21:51,350 involved. Schrenker plays his best hand. 340 00:21:51,750 --> 00:21:56,490 His clients say he delays, drags his feet, and postpones meetings with 341 00:21:56,490 --> 00:21:59,590 regulators. He has good reason for his tactic. 342 00:21:59,930 --> 00:22:04,990 His Eurofund deal is paying off, and he's expanding his client base. 343 00:22:05,750 --> 00:22:08,130 Marker Schrenker, the sky's the limit. 344 00:22:08,710 --> 00:22:13,490 There we go. He's going to get lined up big. He had what's called an unlimited 345 00:22:13,490 --> 00:22:14,490 routine. 346 00:22:15,200 --> 00:22:20,140 And basically it's a very high G routine that has a lot of gyroscopic recession 347 00:22:20,140 --> 00:22:21,540 maneuvers in it. 348 00:22:25,020 --> 00:22:29,440 People will look at my routine and they'll go, how can an airplane possibly 349 00:22:29,440 --> 00:22:30,440 that? 350 00:22:31,000 --> 00:22:35,020 People are fascinated by flight. They love to come out, especially kids. 351 00:22:35,340 --> 00:22:39,520 And there's nothing more wholesome than a parent bringing out their kids for an 352 00:22:39,520 --> 00:22:40,139 air show. 353 00:22:40,140 --> 00:22:41,420 Give Harkin Breaker a hand. 354 00:22:41,840 --> 00:22:43,460 I'll tell you what, I couldn't have done that. 355 00:22:48,699 --> 00:22:54,300 Always eager to impress, Schrenker's life in Geist is as choreographed as his 356 00:22:54,300 --> 00:22:55,300 aerial routines. 357 00:22:55,820 --> 00:23:01,300 He would fly them in his airplane, show them his house out on Geist Reservoir, 358 00:23:01,460 --> 00:23:04,760 and appeared to have all the trappings of success. 359 00:23:05,080 --> 00:23:10,900 And that would play some factor in our victims deciding to invest their money 360 00:23:10,900 --> 00:23:11,900 with him. 361 00:23:13,950 --> 00:23:20,910 of what he had to do was live large to convince people that he's 362 00:23:20,910 --> 00:23:23,390 made it. You can trust him. He's doing something right, isn't he? 363 00:23:23,710 --> 00:23:25,910 Look at the car, look at the house, look at the plane. 364 00:23:26,250 --> 00:23:27,590 He's doing something right. 365 00:23:27,790 --> 00:23:29,010 That was part of it. 366 00:23:29,530 --> 00:23:33,310 But I think he was always just trying to stay one step ahead of it. 367 00:23:34,310 --> 00:23:37,370 But scratch the surface, and it all falls apart. 368 00:23:37,970 --> 00:23:39,810 The $1 .2 million house? 369 00:23:40,210 --> 00:23:41,770 It's mortgage to the hilt. 370 00:23:42,410 --> 00:23:48,090 Cars, lanes, they're all on banknotes. When you look at all the trappings of 371 00:23:48,090 --> 00:23:51,190 success, it's much like a Hollywood set. 372 00:23:51,390 --> 00:23:55,550 Once you look behind that facade, you can see that it's really empty. 373 00:23:56,130 --> 00:23:57,870 And a storm is brewing. 374 00:23:58,450 --> 00:24:00,970 Lisa Harpino's investigation is growing. 375 00:24:01,250 --> 00:24:06,050 And Chief Deputy Prosecutor Jeff Waymiller is asking questions about 376 00:24:06,950 --> 00:24:11,270 To him, Schrenker is starting to look like a Hoosier Bernie Madoff. 377 00:24:12,560 --> 00:24:16,820 He generates clients' Eurofund statements with an online investment 378 00:24:17,280 --> 00:24:21,500 Every chart, every return, every number is pure fabrication. 379 00:24:22,360 --> 00:24:26,660 Marcus would manipulate the numbers for this Euro account to show, not only to 380 00:24:26,660 --> 00:24:29,820 create the account, but also to show false returns. 381 00:24:30,380 --> 00:24:34,760 And, like a mini -Madoff, he spends clients' money as though it were his 382 00:24:35,200 --> 00:24:39,020 Well, the paper trail, according to the probable cause, pretty much ends when he 383 00:24:39,020 --> 00:24:44,480 was making personal payments on items such as his house, his cars, his 384 00:24:44,920 --> 00:24:49,360 Waymiller and local police prepare for a search warrant of Schrenker's home and 385 00:24:49,360 --> 00:24:53,260 office. But Schrenker is oblivious to the impending storm. 386 00:24:53,660 --> 00:24:57,820 His life in Geist is a Midwest version of Margaritaville. 387 00:24:58,270 --> 00:25:03,630 We live on a part of Geist Reservoir called Cocktail Cove, and it's known as 388 00:25:03,630 --> 00:25:06,650 being kind of the place where a lot of the boats congregate in the summer. 389 00:25:07,150 --> 00:25:12,670 We could have literally 200 boats in our backyard tied up on a Saturday and 390 00:25:12,670 --> 00:25:13,629 sometimes Sundays. 391 00:25:13,630 --> 00:25:17,790 He had a boat. What was unique about Marcus and his boat is he had a very 392 00:25:17,790 --> 00:25:20,390 big boat, but he also had this big floating trampoline. 393 00:25:20,780 --> 00:25:24,660 On any given Saturday or Sunday afternoon, you would see Marcus pull his 394 00:25:24,660 --> 00:25:28,700 out, and he would actually pull the trampoline behind him, and kids would 395 00:25:28,700 --> 00:25:31,840 up to it, and they'd jump on it, and they'd jump off the trampoline, jump 396 00:25:31,840 --> 00:25:35,780 on. And so that was kind of a playful thing that he would do on the weekends. 397 00:25:36,840 --> 00:25:41,940 But as the summer of 08 turns to fall, the markets implode. 398 00:25:42,700 --> 00:25:44,440 And so does Marcus Schrenker. 399 00:25:45,120 --> 00:25:48,880 When American Greed returns, Schrenker takes a dangerous flight. 400 00:25:49,370 --> 00:25:51,150 to escape this collapsing world. 401 00:25:55,890 --> 00:25:56,450 Some 402 00:25:56,450 --> 00:26:06,390 huge 403 00:26:06,390 --> 00:26:10,670 companies in bad shape. There's fresh evidence tonight that much of the world 404 00:26:10,670 --> 00:26:11,710 in this with us. 405 00:26:12,090 --> 00:26:17,630 In late December of 2008, amid the global economic meltdown, the world of 406 00:26:17,630 --> 00:26:19,850 manager Marcus Schrenker is collapsing. 407 00:26:20,510 --> 00:26:22,870 Insurance regulators are closing in. 408 00:26:23,430 --> 00:26:28,450 They say they know that Schrenker has churned client accounts, costing them 409 00:26:28,450 --> 00:26:30,670 hundreds of thousands of dollars in surrender fees. 410 00:26:31,530 --> 00:26:34,450 And now, criminal charges are in the works. 411 00:26:35,950 --> 00:26:39,350 Investigators believe his Euro fund is all smoke and mirrors. 412 00:26:39,980 --> 00:26:42,260 And Schrenker is pocketing clients' money. 413 00:26:42,640 --> 00:26:47,340 So someone would agree to invest with him based on skills that he represented, 414 00:26:47,580 --> 00:26:53,860 returns that he was supposedly getting other clients, and he would usually take 415 00:26:53,860 --> 00:26:59,680 that money and buy a home with it, buy a plane with it, buy nice cars with it. 416 00:26:59,840 --> 00:27:04,900 On December 31, 2008, a search warrant is served on Schrenker's home. 417 00:27:05,310 --> 00:27:08,830 Well, the search warrant authorized agents of the Secretary of State's 418 00:27:08,830 --> 00:27:12,590 with the assistance of the Indiana State Police to seize any business records, 419 00:27:12,830 --> 00:27:18,770 computers, any information that would document the business activities of the 420 00:27:18,770 --> 00:27:21,190 heritage companies and ICON. 421 00:27:21,430 --> 00:27:23,590 His wife, Michelle, is home. 422 00:27:24,230 --> 00:27:25,310 Tranker is gone. 423 00:27:25,850 --> 00:27:28,410 He's in Key West, shacked up with a girlfriend. 424 00:27:28,850 --> 00:27:32,170 It seems his business isn't the only thing that's crumbling. 425 00:27:33,260 --> 00:27:36,600 The day before the search warrant, Michelle files for divorce. 426 00:27:37,060 --> 00:27:39,240 The perfect family was breaking up. 427 00:27:39,720 --> 00:27:45,640 Yes. Yes. And certainly Marcus Schrenker left the impression that he had the 428 00:27:45,640 --> 00:27:47,500 perfect family with the perfect kids. 429 00:27:47,760 --> 00:27:51,620 However, he also had a woman on the side, his girlfriend. 430 00:27:52,300 --> 00:27:54,180 Schrenker's future looks bleak. 431 00:27:54,600 --> 00:27:57,600 Divorce, financial ruin, and prison. 432 00:27:58,380 --> 00:28:04,560 My personal opinion is that he was a desperate man who'd lost everything, and 433 00:28:04,560 --> 00:28:07,360 devised what he thought was an ingenious plan. 434 00:28:07,680 --> 00:28:09,180 In early January 2009, 435 00:28:10,080 --> 00:28:12,360 Schrenker plots an exit strategy. 436 00:28:12,740 --> 00:28:16,940 His scheme involves a plane, a parachute, and a motorcycle. 437 00:28:17,860 --> 00:28:22,300 On January 10th, Schrenker drives from Indiana to the small town of 438 00:28:22,300 --> 00:28:23,400 Harpersville, Alabama. 439 00:28:24,120 --> 00:28:27,480 The most interesting aspect about Harpersville, Alabama, is the fact that 440 00:28:27,480 --> 00:28:30,600 lies directly between Indiana and the Gulf of Mexico. 441 00:28:31,020 --> 00:28:32,240 He's towing a trailer. 442 00:28:32,720 --> 00:28:35,280 Inside is a red Yamaha motorcycle. 443 00:28:35,840 --> 00:28:41,360 When he reached Harpersville, he sought out a public storage unit, contacted the 444 00:28:41,360 --> 00:28:45,380 owner, and told this owner that he wanted to store his motorcycle for a few 445 00:28:45,380 --> 00:28:46,380 days. 446 00:28:46,600 --> 00:28:51,640 Schrenker stashes his motorcycle in Harpersville and returns home to 447 00:28:53,390 --> 00:28:59,350 The next day, on January 11, 2009, he tells friends and family he's flying 448 00:28:59,350 --> 00:29:01,990 to Destin, Florida, where his dad lives. 449 00:29:02,250 --> 00:29:06,050 The pressure must be intense because Schrenker is acting erratically. 450 00:29:06,650 --> 00:29:11,290 Before he boards his plane, he texts a friend with a bizarre message. 451 00:29:11,890 --> 00:29:16,010 Well, I can just tell you what he texted to his friend, that he was going to 452 00:29:16,010 --> 00:29:19,930 visit his father in Florida before entering into the witness protection 453 00:29:20,030 --> 00:29:25,030 according to his text. That night... A clearly stressed out Schrenker is caught 454 00:29:25,030 --> 00:29:29,110 on camera doing donuts at the airstrip where he keeps his plane. 455 00:29:30,250 --> 00:29:34,450 Moments after this is filmed, the troubled man who claims to be entering a 456 00:29:34,450 --> 00:29:38,250 witness protection program boards his plane and takes off. 457 00:29:38,930 --> 00:29:40,030 He's headed south. 458 00:29:40,910 --> 00:29:46,110 Two hours into the flight, high above Huntsville, Alabama, Schrenker sends a 459 00:29:46,110 --> 00:29:47,110 Mayday call. 460 00:29:56,750 --> 00:30:01,530 He said that his cabin had lost pressure, that the windshield was 461 00:30:01,530 --> 00:30:02,630 that he was losing consciousness. 462 00:30:03,070 --> 00:30:07,510 He then said something about blood being on the windshield, and that's the last 463 00:30:07,510 --> 00:30:10,870 communication Marcus Schrenker had with the Coast Guard. 464 00:30:12,250 --> 00:30:17,790 Alarm that the pilot is dead or disabled, the Navy dispatches two F 465 00:30:18,090 --> 00:30:22,990 The fighter pilots pull alongside Schrenker's plane in midair. The door is 466 00:30:23,130 --> 00:30:24,450 The cockpit is dark. 467 00:30:25,100 --> 00:30:26,460 The pilot is gone. 468 00:30:26,840 --> 00:30:30,620 Two F -15 jet fighters were dispatched to intercept the airplane. 469 00:30:30,960 --> 00:30:35,020 Once the pilots arrived, they were able to report that there were no lights on 470 00:30:35,020 --> 00:30:37,240 and they weren't able to see any movement within the cabin. 471 00:30:37,460 --> 00:30:42,620 Even without its pilot, the Piper Malibu continues its path south, but the 472 00:30:42,620 --> 00:30:44,540 stairs are down, creating drag. 473 00:30:44,760 --> 00:30:46,860 The plane is quickly running out of gas. 474 00:30:47,460 --> 00:30:51,700 Just across the Alabama state line, the plane crashes into a swamp. 475 00:30:52,160 --> 00:30:54,800 just a quarter mile from a subdivision. 476 00:30:55,580 --> 00:31:01,000 After the airplane crashed, rescue workers were very quickly on site and 477 00:31:01,000 --> 00:31:04,880 able to determine that there were no remains of the pilot. From that, they 478 00:31:04,880 --> 00:31:06,500 inferred that the pilot had jumped. 479 00:31:06,860 --> 00:31:08,100 They're exactly right. 480 00:31:08,460 --> 00:31:11,400 Schrenker has jumped to 10 ,000 feet above central Alabama. 481 00:31:11,780 --> 00:31:17,380 The plan was to parachute into a sod farm, but he misses the mark and lands 482 00:31:17,380 --> 00:31:18,640 swamp near the Coosa River. 483 00:31:19,330 --> 00:31:22,050 Schranker wades out and walks to the nearest house. 484 00:31:23,910 --> 00:31:26,690 We are a sod farm in Harpersville. 485 00:31:26,970 --> 00:31:30,830 I think Marcus meant to land somewhere in this general area. As you can see, 486 00:31:30,850 --> 00:31:34,770 it's a good big target for somebody who knew what they were doing, which 487 00:31:34,770 --> 00:31:39,670 obviously Marcus didn't. He wound up landing actually on the other side of 488 00:31:39,670 --> 00:31:44,330 river, and probably those were the lights that he could see at that home 489 00:31:44,890 --> 00:31:48,270 He just approached those lights, hoping he could get help. 490 00:31:48,760 --> 00:31:51,960 He knocks on the door, soaking wet and covered in mud. 491 00:31:52,340 --> 00:31:54,920 He says he was canoeing in a nearby river. 492 00:31:55,140 --> 00:31:57,480 He capsized and lost his boat. 493 00:31:57,920 --> 00:32:00,420 The homeowner is skeptical and calls police. 494 00:32:01,000 --> 00:32:04,400 He then offers Schrenker a ride to the nearest convenience store. 495 00:32:04,920 --> 00:32:09,820 You know, it was wintertime, and the story, according to this man, just 496 00:32:09,820 --> 00:32:14,780 contrived. You know, sounded like he'd made it up. Police arrive and talk to 497 00:32:14,780 --> 00:32:17,880 Schrenker, who surprisingly gives them his real name. 498 00:32:18,200 --> 00:32:21,940 And he gave him the same story, basically, that he'd been separated from 499 00:32:21,940 --> 00:32:26,980 friends, canoeing. So the officer ran his driver's license on the National 500 00:32:26,980 --> 00:32:31,760 Computer Database. Information was there, but no red flags, no warrants, 501 00:32:31,760 --> 00:32:35,700 to show that anybody, any agency, law enforcement agency, had any interest in 502 00:32:35,700 --> 00:32:40,740 him. At Schrenker's request, police escort him to a hotel in Harpersville. 503 00:32:41,560 --> 00:32:46,520 Security footage records Schrenker checking in, but Schrenker never intends 504 00:32:46,520 --> 00:32:47,520 stay the night. 505 00:32:48,260 --> 00:32:52,720 Instead, he jogs half a mile down the road to the storage facility where his 506 00:32:52,720 --> 00:32:53,880 motorcycle is waiting. 507 00:32:54,220 --> 00:32:56,100 And he drives off into the night. 508 00:32:57,180 --> 00:32:59,220 The plane crashed Sunday night. 509 00:32:59,420 --> 00:33:03,040 The next day, the plane crashed and the missing pilot are worldwide news. 510 00:33:03,860 --> 00:33:08,100 Alabama authorities say that after checking into a hotel under a different 511 00:33:08,480 --> 00:33:12,720 Shrinker put on a black cap and moved into the woods, his plane hitting the 512 00:33:12,720 --> 00:33:14,600 ground miles away, empty. 513 00:33:15,260 --> 00:33:19,720 In Harpersville, one of Chief Latimer's deputies remembers seeing Schrenker in 514 00:33:19,720 --> 00:33:22,180 town. U .S. Marshals are called. 515 00:33:22,480 --> 00:33:28,180 With the information received from Birmingham that he was now operating a 516 00:33:28,180 --> 00:33:31,460 Yamaha motorcycle, we had something go on. 517 00:33:32,260 --> 00:33:36,780 When American Greed returns, can the feds find a desperate Marcus Schrenker 518 00:33:36,780 --> 00:33:38,420 before he really does himself in? 519 00:33:49,710 --> 00:33:55,770 In Florida, a plane piloted by money manager Marcus Schrenker has crashed, 520 00:33:55,770 --> 00:33:56,770 there's no body. 521 00:33:56,830 --> 00:33:59,430 Many believe Schrenker faked his death. 522 00:33:59,770 --> 00:34:03,510 He was flying one of his planes to Florida Sunday when authorities say they 523 00:34:03,510 --> 00:34:08,210 a fake distress call when his turboprop then crashed without him in it. 524 00:34:08,850 --> 00:34:10,050 He didn't crash his airplane. 525 00:34:10,310 --> 00:34:14,770 One thing, you know, the guy had no sense of humor. If his lips are moving, 526 00:34:14,770 --> 00:34:16,489 lying, but he was a good pilot. 527 00:34:17,290 --> 00:34:21,210 David Smith is one of many retired commercial pilots who were scammed by 528 00:34:21,210 --> 00:34:24,889 Schrenker. Smith says he has good reason to be cynical. 529 00:34:25,389 --> 00:34:29,310 Well, then the story began to unfold, and it was like, oh, my God. 530 00:34:29,830 --> 00:34:32,409 And it was tempered with a little bit of laughter. 531 00:34:32,610 --> 00:34:34,949 I knew he was going to do something. 532 00:34:35,230 --> 00:34:37,670 I knew he was going to do something, and he did. 533 00:34:38,550 --> 00:34:44,030 On January 13, 2009, less than two days after Schrenker's disappearance, 534 00:34:44,780 --> 00:34:49,920 His friend and confidant, Tom Britt, is glued to the TV, asking the questions so 535 00:34:49,920 --> 00:34:50,920 many are asking. 536 00:34:51,020 --> 00:34:52,780 Where is Marcus Schrenker? 537 00:34:53,560 --> 00:34:55,520 Then Britt checks his email. 538 00:34:55,840 --> 00:35:00,060 I hit send and receive on my email, and an email pops up in the subject line. 539 00:35:00,820 --> 00:35:03,260 It says, from Marcus. 540 00:35:03,860 --> 00:35:08,540 Looking for anyone to hear his side of the story, Schrenker reaches out to 541 00:35:08,540 --> 00:35:10,960 someone he thinks might be a sympathetic ear. 542 00:35:11,280 --> 00:35:13,980 And he's trying to pass all the blame off onto someone else. 543 00:35:14,700 --> 00:35:18,860 And then he talks about his wife, and he says, you know, she divorced me, I 544 00:35:18,860 --> 00:35:22,060 deserved it. He says, this is the last time I'm going to embarrass my family 545 00:35:22,060 --> 00:35:23,058 like this. 546 00:35:23,060 --> 00:35:25,440 And he said, by the time you read this, I'll be gone. 547 00:35:26,480 --> 00:35:27,840 Take care, Marcus. 548 00:35:28,420 --> 00:35:31,080 My immediate thought was, I've got to get this to the police. 549 00:35:31,720 --> 00:35:34,820 The U .S. Marshals are already hot on his trail. 550 00:35:35,340 --> 00:35:39,560 Recovered from the wreckage of the airplane was the U .S. 551 00:35:39,920 --> 00:35:43,860 campground directory with the Florida page ripped out. We knew he was heading 552 00:35:43,860 --> 00:35:48,120 Florida. We were able to determine how far he would have been able to travel, 553 00:35:48,240 --> 00:35:54,720 and our operational plan was to check all the campgrounds along the I -10 554 00:35:55,480 --> 00:36:00,280 Amazingly, the marshals strike gold at the very first campsite they check, this 555 00:36:00,280 --> 00:36:02,880 KOA campground outside of Tallahassee. 556 00:36:03,160 --> 00:36:07,620 The manager recognizes Schrenker as a guy who checked in last night, bought a 557 00:36:07,620 --> 00:36:09,640 bundle of firewood and a six -pack of beer. 558 00:36:09,920 --> 00:36:12,080 She directs the marshals to his tent. 559 00:36:12,570 --> 00:36:18,630 As we approached the tent and gave the verbal commands, he complied. He stuck 560 00:36:18,630 --> 00:36:21,270 both hands out of the open door flap. 561 00:36:21,490 --> 00:36:27,190 At that time, we saw the wound to his left wrist and saw the large amount of 562 00:36:27,190 --> 00:36:33,430 blood on his clothing on the front of the tent, and we knew we had a medical 563 00:36:33,430 --> 00:36:36,850 situation. Inside the tent, there's a pool of blood. 564 00:36:37,510 --> 00:36:41,350 Schrenker is in and out of consciousness, muttering, die, die. 565 00:36:42,280 --> 00:36:46,760 With authorities closing in, he has used a razor blade to slash his wrists. 566 00:36:46,980 --> 00:36:52,320 He has suffered massive blood loss, but doctors are able to save him just in 567 00:36:52,320 --> 00:36:53,320 time. 568 00:36:54,180 --> 00:37:00,440 In my opinion, seeing him that night, the condition he was in, the two 569 00:37:00,440 --> 00:37:06,300 injuries that he inflicted to himself, I don't think he would have made it 570 00:37:06,300 --> 00:37:07,078 through tonight. 571 00:37:07,080 --> 00:37:11,720 If Marcus Schrenker was looking for an easy way out, he won't get it. 572 00:37:12,190 --> 00:37:16,590 As soon as he recovers here, he's already facing felony charges of fraud 573 00:37:16,590 --> 00:37:19,550 federal charges for causing his own plane crash. 574 00:37:19,930 --> 00:37:24,470 Federal charges of intentionally crashing a plane are now added to a 575 00:37:24,470 --> 00:37:25,950 list of financial charges. 576 00:37:26,350 --> 00:37:28,950 And then there is the question of his wife, Michelle. 577 00:37:29,450 --> 00:37:33,430 She holds the title of chief financial officer in Schrenker's companies. 578 00:37:33,870 --> 00:37:36,410 A cloud of suspicion falls on her head. 579 00:37:37,010 --> 00:37:41,050 That's what investigators have been very interested in. How much of a role did 580 00:37:41,050 --> 00:37:42,050 she play? 581 00:37:42,310 --> 00:37:47,110 Shortly after her husband's arrest, Michelle Schrenker goes on the Today 582 00:37:47,110 --> 00:37:48,910 talk about her role in the company. 583 00:37:49,210 --> 00:37:52,850 When you hear about it, how much did you know, how aware were you of the 584 00:37:52,850 --> 00:37:55,110 severity of the financial problems? 585 00:37:55,590 --> 00:37:57,770 I had limited duties there. 586 00:37:58,010 --> 00:38:00,370 All I did was help my husband out. 587 00:38:00,650 --> 00:38:06,450 I payrolled and I did paid bills. That's all I did. 588 00:38:06,990 --> 00:38:07,990 You were a bookkeeper? 589 00:38:08,010 --> 00:38:12,030 I was a bookkeeper, but it wasn't what he wanted for the image, for the 590 00:38:12,030 --> 00:38:15,470 marketing. And, Michelle, are you in contact with your husband? Have you 591 00:38:15,470 --> 00:38:16,470 to him in jail? 592 00:38:16,830 --> 00:38:19,150 I have. He has made his apologies to me. 593 00:38:19,590 --> 00:38:25,850 But right now, I'm just focusing on my kids and on what I need to do next. 594 00:38:26,310 --> 00:38:29,130 Michelle Schrenker faces no criminal charges. 595 00:38:29,610 --> 00:38:32,370 I think the focus now, to be honest with you, is on him. 596 00:38:33,190 --> 00:38:34,690 And I think the... 597 00:38:35,490 --> 00:38:38,450 Investigators in Indiana feel that if they're going to be charged against her, 598 00:38:38,550 --> 00:38:41,830 then so be it, and they're patient. They're willing to be patient and wait. 599 00:38:41,990 --> 00:38:46,010 Federal authorities filed two charges against him. One, the intentional 600 00:38:46,010 --> 00:38:50,130 destruction of an aircraft. The other one was issuing a false distress call. 601 00:38:50,410 --> 00:38:54,770 And so we waited patiently until the federal court had finished with him. 602 00:38:55,050 --> 00:38:59,470 Schrenker pleads guilty to the charges relating to the crash and receives four 603 00:38:59,470 --> 00:39:00,670 years in federal prison. 604 00:39:01,150 --> 00:39:03,150 As for the financial crimes... 605 00:39:03,740 --> 00:39:08,360 Investigators believe Schrenker cleared more than $2 million between his annuity 606 00:39:08,360 --> 00:39:10,400 scam and the Eurofund scam. 607 00:39:11,660 --> 00:39:16,440 Looking back, Dave Smith realizes he should have seen the warning signs when 608 00:39:16,440 --> 00:39:19,540 investment advisor became one of his closest friends. 609 00:39:20,180 --> 00:39:23,860 The red flags that I should have seen were the ones that you really wouldn't 610 00:39:23,860 --> 00:39:26,340 think about seeing, and that's what makes the scheme work. 611 00:39:26,620 --> 00:39:29,180 You know, you've heard the expression, there's nothing new under the sun. There 612 00:39:29,180 --> 00:39:32,500 isn't. This is the same old trick. You know, you make... 613 00:39:32,880 --> 00:39:35,480 Friends with somebody. Your buddies, your pals. 614 00:39:35,700 --> 00:39:36,860 Hey, let's go get a beer. 615 00:39:37,140 --> 00:39:41,520 Let's do this, let's do that. Before you know it, the guy's running around with 616 00:39:41,520 --> 00:39:42,520 your wife. 617 00:39:42,920 --> 00:39:47,340 Dave Smith, Mike Kenney, and the other victims contact the companies whose 618 00:39:47,340 --> 00:39:51,120 insurance was sold by Schrenker, asking for their money back. 619 00:39:51,580 --> 00:39:54,160 At first, their pleas fall on deaf ears. 620 00:39:54,580 --> 00:39:59,560 The money was acquired fraudulently. Not their fraud, but it was acquired 621 00:39:59,560 --> 00:40:01,860 fraudulently. They drug their feet, they fought. 622 00:40:02,990 --> 00:40:08,710 Suddenly, after refusal, refusal, refusal, suddenly said, fine, here's 623 00:40:08,710 --> 00:40:14,250 money. Tonight he faces federal charges. In an ironic twist of fate, Schrenker's 624 00:40:14,250 --> 00:40:17,810 high -profile escape benefits his churning victims. 625 00:40:18,250 --> 00:40:22,070 His shenanigans with his airplane did us the biggest favor he could possibly do. 626 00:40:22,190 --> 00:40:27,730 Those companies did not want to be associated with such a bad news story, 627 00:40:27,730 --> 00:40:29,710 bad agent who was obviously... 628 00:40:31,100 --> 00:40:33,360 caught guilty in doing such bad things. 629 00:40:33,720 --> 00:40:40,000 So they were very eager to cut their ties with him and with us in light of 630 00:40:40,000 --> 00:40:41,020 he had done as their agent. 631 00:40:41,400 --> 00:40:44,660 And one after another, the phone call would come in. 632 00:40:45,400 --> 00:40:47,040 Thank God I just got a check. 633 00:40:47,440 --> 00:40:49,400 I can't believe it. I just got a check. 634 00:40:50,080 --> 00:40:53,480 The check came in today and we kept it up and we kept it up and we kept it up 635 00:40:53,480 --> 00:40:55,960 until everybody got their money back. 636 00:40:56,820 --> 00:41:00,460 Victims of Schrenker's Eurofund scam are not as lucky. 637 00:41:01,020 --> 00:41:04,340 In that case, there are no insurance companies to cover the losses. 638 00:41:05,860 --> 00:41:09,680 He had a very lavish lifestyle that required a lot of money to maintain. 639 00:41:09,960 --> 00:41:13,820 As far as we can tell, Mr. Shrinker was spending the money as quickly as he was 640 00:41:13,820 --> 00:41:14,820 taking it. 641 00:41:15,020 --> 00:41:18,780 Shrinker is scheduled to stand trial in Indiana in 2010. 642 00:41:19,600 --> 00:41:23,880 He's facing multiple criminal charges, including nine counts of fraudulent sale 643 00:41:23,880 --> 00:41:24,880 of securities. 644 00:41:25,240 --> 00:41:28,780 He is charged with 11 classy felonies. 645 00:41:29,050 --> 00:41:35,330 If the court were to sentence him to all the counts and run them consecutively 646 00:41:35,330 --> 00:41:38,070 to their maximum, he could serve up to 88 years. 647 00:41:39,970 --> 00:41:45,530 Local NBC reporter Chris Proffitt of WTHR has a chance to speak with Marcus 648 00:41:45,530 --> 00:41:47,830 Schrenker while he's behind bars in Indianapolis. 649 00:41:48,210 --> 00:41:51,830 He does not take any responsibility for the loss of money. 650 00:41:52,090 --> 00:41:57,690 He said through a disclosure, these people knew exactly the risk that they 651 00:41:57,690 --> 00:42:02,710 taking. He never once said that I took money that didn't belong to me. 652 00:42:03,390 --> 00:42:06,890 He said these were legitimate losses in his words. 653 00:42:07,350 --> 00:42:13,150 So he doesn't take responsibility for any of that, and to this day maintains 654 00:42:13,150 --> 00:42:14,610 hasn't stolen anything from anyone. 655 00:42:15,430 --> 00:42:18,270 Marcus could be the friendliest guy. 656 00:42:18,810 --> 00:42:21,610 He's given me handfuls of gifts. 657 00:42:22,950 --> 00:42:24,630 Always there to take you places. 658 00:42:25,030 --> 00:42:28,130 Offers to, hey, I'm on my way. We're going to go to the football game 659 00:42:28,570 --> 00:42:29,710 And I liked him. 660 00:42:29,990 --> 00:42:34,510 But the bad side of him was he knew if he could just get his hands on money, he 661 00:42:34,510 --> 00:42:35,510 could be somebody. 662 00:42:36,210 --> 00:42:40,150 And I think that maybe there's that element for Marcus. Marcus wants to be 663 00:42:40,150 --> 00:42:41,150 somebody. 664 00:42:41,610 --> 00:42:42,610 He's a story. 665 00:42:43,250 --> 00:42:44,250 He is a story.