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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe state has frozen the assets of three Indianapolis-area businesspeople, including the owners of J.S. Marten Jewelers in Carmel, as part of a fraud investigation, the Indiana Secretary of State’s Office announced late Wednesday afternoon.
The state said Dorothy Geisler-Tragardh, formerly a partner in Virginia-based clean-coal energy company Praxis Resource Partners LLC, and jewelers Jan and Chris Marten are under investigation for securities fraud involving “millions in investor funds.”
The Secretary of State’s office is still determining how many investors were involved and the dollar amount of the alleged fraud, spokesman Jim Gavin said this morning.
The newly filed state civil complaint alleges Geisler-Tragardh and Chris Marten sold stock in Praxis that they characterized as Class B shares valued at $56 each, but actually issued investors shares of Geisler-Tragardh’s own Class A Praxis stock worth only 30 cents apiece.
The state said the defendants would divert the difference into a bank account at Carmel-based Symphony Bank that Geisler-Tragardh kept secret from her business partners.
Geisler-Tragardh, Chris Marten and Jan Marten, who is one of 17 co-founders of Symphony Bank, used funds from the account for their own use, the complaint alleges. The Martens’ jewelry business, J.S. Marten Inc. at 301 E. Carmel Drive, also received funds from the account, court papers allege.
Geisler-Tragardh used the account for personal expenses, including the purchase of a $733,000 home on Geist Reservoir, according to court documents.
The defendants also are accused of misleading investors into buying the stock through “untrue statements of material fact.”
Geisler-Tragardh’s former business partners came forward with suspicions about her activities, according to the Securities Division of the Indiana Secretary of State’s Office.
The assets of Geisler-Tragardh and the Martens were frozen by Judge Patrick McCarty until a hearing set for March 18. Those assets include artwork by Pablo Picasso, a boat, three luxury automobiles and a Rolex watch.
The Martens already were in legal trouble. They were charged with 14 counts of tax evasion Oct. 23 in Hamilton County Superior Court. Investigators allege they failed to remit $875,000 in retail sales tax to the state over three years. The two were arrested and released on bail while the case awaits trial.
Chris Marten, a former real estate speculator, filed for personal bankruptcy in 2005, listing assets of $1.03 million and liabilities of $2.46 million. His 26 creditors included six banks and credit unions.
Multiple attempts to reach Geisler-Tragardh, the Martens and their attorneys this morning were unsuccessful.
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