Friday, 1 August 2014
Last updated 4 hours ago
Mar 26 2012 | 1:46pm ET
A former Indiana hedge fund manager has received a decade in prison for ripping investors off to the tune of more than $7 million.
Keenan Hauke was also ordered to pay $7.1 million in restitution. He had faced as much as 17 years in prison under a plea deal reached in December.
Hauke told U.S. District Judge Tanya Walton Pratt that he was willing "to spend the rest of my life living with nothing but necessities until restitution is complete."
The Samex Partners founder pleaded guilty to securities fraud. According to prosecutors, 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.
Pratt ordered Hauke to begin serving his sentence immediately at the federal prison in Terre Haute, Ind., just 100 miles from Hauke's home in Fishers.