Geist mansion belonging to Dorothy Geisler-Tragardh to be sold; assets returned to victims
INDIANAPOLIS (Feb. 15, 2011) – The Secretary of State’s Securities Division has reached an agreement to liquidate the assets of a Hamilton County woman who bilked investors through a fraudulent stock-sale scheme.
Dorothy Geisler-Tragardh, formerly of Geist, pocketed funds she raised from investors of a clean coal energy company called Praxis Resource Partners, LLC. The liquidation process, initiated by an asset freeze filed in a Marion County civil court by the Secretary of State’s Securities Division in March 2009, involves assets of more than $1 million.
Geisler-Tragardh sold investors shares in Praxis Resource Partners characterized as “Class B,” which were valued at $56, but would actually issue them her own shares of “Class A” stock worth only 36 cents a share.
Geisler-Tragardh then diverted the difference into an Indianapolis bank account for personal expenses, including the purchase of a home on Geist Reservoir.
“This case provides another clear example that illegitimate actors who violate Indiana securities laws will be stripped of the assets they’ve stolen from Hoosier investors, whether it be an SUV, expensive artwork or the roof over their head,” Indiana Securities Commissioner Chris Naylor said. “We can now finish the work of returning the ill-gotten gains to the investors Geisler-Tragardh deceived.”
Additional items in the asset liquidation, with proceeds benefitting the victims of the scheme, include a Picasso lithograph, Waterford crystal glasses, furs, jewelry and a boat.
In a separate but related action, Geisler-Tragardh will be sentenced in a Marion County criminal court on Wednesday on one count of securities fraud, a class C felony. The criminal case was based on the investigative work of the Secretary of State’s Prosecution Assistance Unit, which referred the results of its investigation to the Marion County Prosecutor’s office.
Pursuant to a plea agreement with the Marion County Prosecutor’s office, Geisler-Tragardh will receive a 5-year sentence, with one year to be served on home detention and four years of probation.
About the Prosecution Assistance Unit
Created in 2004, the sole purpose of the unit is to assist police and prosecutors in investigating and prosecuting criminal violations of the Indiana Securities Act and the Indiana Loan Brokers Act. The investigators and attorneys in the unit collectively have more than 72 years of experience in investigating and prosecuting criminals.
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