Man Accused Of $7 Million Fraud In Plea Deal

Dec 14 2011 | 8:47am ET

An Indiana hedge fund manager agreed to plead guilty to defrauding investors of more than $7 million.

Samex Partners founder Keenan Hauke struck a plea deal with federal prosecutors, agreeing to plead guilty to one count of securities fraud in exchange for a recommended prison sentence of no more than 17 years. The charge carries a maximum sentence of 25 years.

Hauke’s plea deal still requires a judge’s approval.

According to the case against Hauke, formally filed yesterday, Hauke both covered up huge losses suffered by Samex and diverted investor funds for his own use. Hauke’s misdeeds came to light earlier this year when a former Samex employee blew the whistle to state regulators. Shortly after, the Federal Bureau of Investigation began its own probe.


In Depth

Electronifie: Better Bond Trading

May 11 2016 | 3:03pm ET

Technology has revolutionized countless aspects of investing and trading, but the...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...