Indiana Accuses Hedge Fund Manager Of Fraud

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.”


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.