Authorities in the state of Indiana have accused Keenan Hauke of stealing money from investors. According to the suit, Hauke:
“intentionally received funds from the bank accounts of Samex Partners that were illegally converted from investors, misled investors by failing to inform them that the funds they were investing would be converted to his personal use. Hauke employed a device, scheme or artifice to defraud investors of Samex Partners. Specifically, he sold investments, in the form of hedge fund interests, to investors under the guise that the hedge fund invested in liquid publicly traded securities."
Hauke's assets and those of Samex Partners, Hauke's hedge fund, were frozen last week by the case judge. Until a preliminary hearing is held on April 25, Hauke and Samex are prevented from conducting business.
Scott Noble, a former Samex employee, tipped off the Indiana Secretary of State to what he called "financial irregularities" at the firm. According to the Indiana Business Journal, when a Hauke's attorney Larry Mackey attempted to paint whistle blower Noble as a thief trying to steal clients from Samex, Noble countered that
“I did not do this to pilfer clients. I did this because there were documents that showed really bad things. I have been stunned since I found those documents. I don't think I've slept a full night since this started."
Hauke, often described as "quirky", is locally known for numerous TV appearances and, until last year, for his column in the Indiana Business Journal.
© 2011 Hedge Fund Writer LLC
