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Hauke fraud victims to get $1M in initial restitution

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The Indiana Secretary of State's Office said Thursday the fraud victims of former money manager Keenan Hauke are set to receive $1 million in initial restitution.

Hauke, who managed Fishers-based hedge fund Samex Capital Partners LLC, was sentenced in July 2012 to 10 years in federal prison after pleading guilty to running a Ponzi scheme that defrauded 67 investors of $7.1 million.

More investors have been uncovered by the state since Hauke's plea agreement, bringing the total to 97 victims with more than $9 million in losses, the secretary of state’s office said.

The first $1 million in restitution is expected to be distributed on a pro-rata basis, a Secretary of State's Office spokesperson said Friday. Checks should be mailed by Sept. 13.

Carmel attorney William E. Wendling Jr., the receiver appointed by the state, will continue to pursue more funds for investors.

Hauke, for example, owns a condo in Barbados worth about $360,000 that has yet to be sold.

The receiver also filed suit against Hauke’s accounting firm, Indianapolis-based DeWitt & Shrader PC, in the hope of recovering more losses. The accounting firm has denied misconduct.

To date, $1.5 million has been recovered “through asset freezes, marshaling of other accounts and clawback litigation,” the state said.

Wendling said in court papers that about $535,000 was retrieved from investors who received payouts totaling more than their investments during a time when Samex was determined to be insolvent.

Some of the recovered funds are being used to pay the receiver, and the law firm and CPA firm he is using to help him in the recovery. Those fees have exceeded hundreds of thousands of dollars.

Hauke’s assets were frozen days after an investigation began into his fraudulent activities in mid-2011.

“Helping these Hoosier victims is our No. 1 priority and we will not stop until we have maximized their restitution,” Secretary of State Connie Lawson said in a prepared statement.

In addition to the $1 million distribution, four Hauke victims received a total of $42,000 from the Secretary of State’s Securities Restitution Fund, which was established in July 2010 to help fraud victims.
 

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  1. Why not take some time to do some research before traveling to that Indiana town or city, and find the ones that are no smoking either inside, or have a patio? People like yourself are just being selfish, and unnecessarily trying to take away all indoor venues that smokers can enjoy themselves at. Last time I checked, it is still a free country, and businesses do respond to market pressure and will ban smoking, if there's enough demand by customers for it(i.e. Linebacker Lounge in South Bend, and Rack and Helen's in New Haven, IN, outside of Fort Wayne). Indiana law already unnecessarily forced restaurants with a bar area to be no smoking, so why not support those restaurants that were forced to ban smoking against their will? Also, I'm always surprised at the number of bars that chose to ban smoking on their own, in non-ban parts of Indiana I'll sometimes travel into. Whiting, IN(just southeast of Chicago) has at least a few bars that went no smoking on their own accord, and despite no selfish government ban forcing those bars to make that move against their will! I'd much rather have a balance of both smoking and non-smoking bars, rather than a complete bar smoking ban that'll only force more bars to close their doors. And besides IMO, there are much worser things to worry about, than cigarette smoke inside a bar. If you feel a bar is too smoky, then simply walk out and take your business to a different bar!

  2. As other states are realizing the harm in jailing offenders of marijuana...Indiana steps backwards into the script of Reefer Madness. Well...you guys voted for your Gov...up to you to vote him out. Signed, Citizen of Florida...the next state to have medical marijuana.

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