A receiver will take control of assets held by a prominent Fishers money manager accused by state officials of violating securities laws.
Samex Capital CEO Keenan R. Hauke and Indiana Securities Commissioner Chris Naylor agreed to the appointment of a receiver and for a preliminary injunction barring Hauke and Samex from transferring cash or assets, destroying documents or conducting business on behalf of Samex customers.
Both orders were entered June 17 in Hamilton County Superior Court.
The state’s complaint says Hauke intentionally received funds from the bank accounts of Samex Capital Partners that were illegally converted from investors in a hedge fund. The state securities division says Hauke violated the Indiana Uniform Securities Act by failing to inform customers that the funds they were investing would be converted to his personal use.
The receiver, William E. Wendling of Carmel-based Campbell Kyle Proffitt LLP, will be responsible for establishing a claims process to distribute funds to "aggrieved shareholders and partners" and distribute assets. It was not clear how much shareholders are owed or how much the Samex and Hauke assets are worth. No charges have been filed.
Samex Capital Partners operates the hedge fund under investigation. Hauke recently sold Samex Capital Advisors, his financial-advising arm, to Global Investment Solutions LLC in Ontario, Canada. But he has said in court filings that no money changed hands and that the agreement calls for him to receive a percentage of commissions only if clients choose to move their account to Global.
The receiver would not have authority over assets transfered to Global, but any commissions earned by Hauke would go into a restitution fund for investors.
The agreement allows Hauke to use about $9,500 in a personal bank account to pay his $2,100 home mortgage and $350 monthly car payment, allowing for the preservation of his assets "pending trial." The injunction allows Hauke to keep earnings from any entity not named in the case that he collects after April 15, 2011.
The Indiana Secretary of State revoked Hauke's financial-advising license in May, a few weeks after a Hamilton County judge ordered a freeze on the money manager's assets and a temporary restraining order barring him from conducting business.
Hauke had written a regular investing column for IBJ for nine years until the column was suspended indefinitely in mid-April after the investigation came to light.
The investigation stems from former Samex adviser Scott Noble’s decision to notify the state about irregularities he said he discovered at the firm. In an interview with IBJ, Noble declined to divulge what the irregularities might include, but said he believed them to be so serious that he resigned from Samex.
Hauke’s lawyer, Larry Mackey of Barnes & Thornburg LLP, said in an e-mail late in April that the complaint was filed by a “former and disgruntled” employee who had previously never raised any concerns about Hauke.