Feds: Missing pilot alive in Fla. after wrist cut

Feds on Tuesday night nabbed Marcus Schrenker, the former Merrillville resident accused of faking his death while evading legal and personal turmoil, in Quincy, Fla. Federal authorities said the pilot apparently slit one of his wrists.

U.S. Marshals spokesman Michael Richards says the 38-year-old Schrenker was apprehended about 9 p.m. in a tent at a campground in Quincy.

Richards says one of Schrenker's wrists was cut, but he's alive and in custody.

MORE: Find more information about former Merrillville resident Marcus Schrenker.

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Before news broke of the arrest, neighbors and schoolmates, new and old, pondered Tuesday the Schrenker debacle.

"He was a good student, and he liked to have fun," former Merrillville teacher Jerry Kasarda said. "I find this pretty shocking. The whole situation just seems kind of bizarre."

Authorities believe that on Sunday, missing investment banker Schrenker, 38, bailed out of his small plane -- en route from Anderson, Ind., to Florida -- over Alabama, then left it on autopilot to crash in Florida.

In the days before the crash, Schrenker's home and business had been searched by authorities probing his financial management business, his wife filed for divorce, his stepfather died and a court in Maryland entered a half-million-dollar judgment against him.

Troubles worsened earlier Tuesday when an Indiana judge ordered Schrenker arrested on financial fraud charges, after prosecutors said he had given financial advice to clients and made business deals even though his state license had expired Dec. 31.

A call to Schrenker's wife in McCordsville, Ind., elicited a "no response" Tuesday from a relative.

Schrenker's mother told the Associated Press she is just happy to know that he is alive. She hopes whoever finds him will treat him well and give him a chance to explain what he did and why.

"Sometimes we just all have too many problems," said Marcia Galoozis, who lives in the Lakes of Four Seasons area. "And I don't know what all his problems are, but sometimes we just don't think straight, get our heads twisted on wrong."

Attempts by The Times were unsuccessful in reaching Schrenker's father, former Merrillville schools Superintendent Robert Schrenker.

Indianapolis-area friend and neighbor Tom Britt said Tuesday he got an e-mail from Schrenker at 7:18 p.m. Monday. Britt said Schrenker seemed despondent and possibly suicidal.

Britt said Schrenker maintained his story that the plane lost pressure and the crash was an accident.

"I think there are just a whole triangle of pressure and stress on him," Britt said. "I didn't want to believe it, but I think he cooked up this plan to stage his death."

Britt said he got to know Schrenker a few years ago through a newsletter and Web site that Britt maintains about his neighborhood.

"He's a great guy. He's just the kind of guy you really enjoy talking to," Britt said. "I never would have expected him to do something like this."

Before graduating in 1989, Schrenker was active at Merrillville High School, playing football and participating in Quest, the German Club, and the yearbook and newspaper staffs.

Former teachers and schoolmates expressed surprise about the drama entangling their one-time teammate, shutterbug and student.

"There are obviously a lot of unanswered questions," said Tony Lux, Merrillville schools superintendent, and assistant principal when Schrenker's father was superintendent. "It is very upsetting for the entire Schrenker family."

Tom Judge, a fellow 1989 Merrillville graduate who played football with Schrenker said, "It kind of shocked me when I heard that. I thought 'Yeah, I went to high school with that guy.' "

Judge, who now lives in Lowell, said he has not been in touch with Schrenker in the 20 years since they graduated.

"He was always super popular, one of the guys you wanted to hang around with," Judge said.

Among those Schrenker hung around with on the yearbook staff was Susan Lytle Bishop, who played managing editor to Schrenker�s photographer.

"We had been friends," Lytle Bishop said Tuesday. "He was a good guy. I feel terrible about this whole thing."

Lytle Bishop, now living in Chicago, called Schrenker a "really smart" and "intense" person in high school.

But, she added, "That was 20 years ago. I have no idea who he is now."

On a Web site aimed at uniting Pirate alums, a posting under Schrenker�s name lists him living in Indianapolis and, "What everyone else is doing, trying to put my kids through school, pay the bills, live the American dream."

Times staff writers Carmen McCollum and Christine Kraly and The Associated Press contributed to this report.