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Tuesday, July 23, 2024

High profile money manager charged with securities fraud

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Keenan R. Hauke, 40, Fishers, has been charged with securities fraud in connection with his role as owner and CEO of Samex Capital, a Fishers-based company, according to an announcement by Joseph H. Hogsett, United States Attorney.

The information filed by the U.S. Attorney’s Office alleges that Hauke defrauded more than five dozen people of more than $7 million from 2004-2011.

Hogsett said, “I want to be clear: Hoosiers have no tolerance for those who foster a culture of corruption in our communities, and neither does this office.”

He said, “No matter who it is or how much the amount, whether they be shareholders or taxpayers, if you are swindling hardworking Hoosiers this office is committed to finding you, investigating you, and bringing you to justice.”

“These are serious allegations, and the personal tragedies involved sadden all of us,” Hogsett added. “With millions of dollars lost in this case, and dozens of Hoosier families affected, we are looking forward to the successful conclusion of this prosecution.”

Robert J. Holley, FBI Special Agent in Charge, said, “Corporate and securities fraud is a high priority criminal threat for the Indianapolis Division of the FBI, and this investigation is an example of our commitment to aggressively investigate corporate insiders who seek to steal money from their investors.”

The information about the case states that in 1999, Hauke founded Samex Capital in Fishers, allegedly forming a hedge fund and soliciting investors. As owner and CEO, Hauke is alleged to have procured millions of dollars in investment funds beginning in 1999. The information alleges that between 2004 and 2011, Hauke engaged in a scheme to defraud these investors.

The information states that 67 investors lost a total of $7,022,020.12 as a result of the scheme, in which Hauke allegedly failed to invest the money as promised, falsely reporting to investors that the fund was resulting in high rates of returns in an effort to dissuade them from closing their investment accounts. New investor money was used to pay those who did choose to close their account. It is also alleged that as part of the scheme, Hauke misappropriated and converted investor funds to his own benefit without the knowledge or authorization of the investors.

In April, 2011, a former employee became suspicious of Hauke and resigned from Samex Capital. That employee informed a number of investors that their investments may not be secure, an allegation that was denied by Hauke at the time. Shortly thereafter, the alleged fraudulent scheme was reported to the public, and Hauke’s personal accounts were frozen.

Chris Naylor, Indiana Securities Commissioner, said, “I am pleased to learn that Keenan Hauke will be held accountable for his criminal conduct. This case provides another example that securities fraud will not be tolerated in Indiana. I commend U.S. Attorney Hogsett and his office for their efforts in working with us and achieving justice.

“I also thank the Securities Division team for their quick actions in stopping the illegal flow of money to Hauke through the Asset Freeze and Receivership. The Securities Division will continue to provide assistance to the receiver in the marshaling of assets and return of ill-gotten gains to investors.”

According to Assistant U.S. Attorneys Steven D. DeBrota and Nicholas E. Surmacz, who are prosecuting the case for the government, Hauke faces a maximum sentence of 25 years imprisonment, a fine of not more than $250,000, and a supervised release term of not more than five years if convicted.

The charge is an allegation only, and the defendant is presumed innocent unless and until proven guilty at trial or by guilty plea.

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