Tuesday, 22 July 2014
Last updated 2 hours ago
Apr 20 2011 | 1:12pm ET
Indiana authorities have filed suit against a prominent hedge fund manager in the state, accusing him of stealing from investors.
Keenan Hauke “intentionally received funds from the bank accounts of Samex Partners,” his hedge fund, “that were illegally converted from investors,” the state’s lawsuit alleges. Last week, a judge froze Hauke’s assets and those of his firm, Samex Capital Advisors. Hauke and Samex are also barred from doing business pending an April 25 preliminary hearing.
“Hauke employed a device, scheme or artifice to defraud investors of Samex Partners,” according to the suit. “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 alleged misdeeds emerged earlier this month, when former Samex employee alerted state regulators to “financial irregularities” at the firm. A lawyer for Hauke said the whistleblower, Scott Noble, was merely seeking to steal Samex’s clients.
“I did not do this to pilfer clients,” Noble told the Indianapolis Business Journal, which ran a column by Hauke until last week. “I did this because there were documents that showed really bad things.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…