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Investment adviser Hauke agrees to plead guilty in $7M fraud

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Former Fishers investment manager Keenan Hauke has agreed to plead guilty to one count of securities fraud, a charge that carries a maximum penalty of 25 years in prison.

Federal prosecutors on Tuesday afternoon charged Hauke with masking huge losses in his hedge fund for years as part of a scheme that ultimately resulted in 67 investors losing more than $7 million.

Immediately after filing the criminal information in U.S. District Court in Indianapolis, the U.S. Attorney’s Office submitted a plea agreement signed by Hauke in which he admitted guilt. The plea agreement, which requires court approval, would prevent the government from recommending a prison sentence of more than 17 years.

The Securities Division of the Secretary of State’s Office began investigating Hauke early this year after a co-worker notified the state about irregularities he said he had discovered. The FBI soon joined the probe.

In an investigative story in August, IBJ reported that Hauke’s hedge fund had invested millions of dollars into Michigan real estate seven years ago without telling clients and that the holdings ended up nearly worthless. Rather than fess up, he created fake account statements for clients and used money from new investors to pay off earlier ones.

In court papers, prosecutors alleged that Hauke diverted some investor funds for personal use, including paying off the mortgage on his home.

Hauke, who is in his early 40s, wrote a regular investing column for IBJ for nine years. The newspaper discontinued the column when the investigation  began.
 

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  1. I am so impressed that the smoking ban FAILED in Kokomo! I might just move to your Awesome city!

  2. way to much breweries being built in indianapolis. its going to be saturated market, if not already. when is enough, enough??

  3. This house is a reminder of Hamilton County history. Its position near the interstate is significant to remember what Hamilton County was before the SUPERBROKERs, Navients, commercial parks, sprawling vinyl villages, and acres of concrete retail showed up. What's truly Wasteful is not reusing a structure that could still be useful. History isn't confined to parks and books.

  4. To compare Connor Prairie or the Zoo to a random old house is a big ridiculous. If it were any where near the level of significance there wouldn't be a major funding gap. Put a big billboard on I-69 funded by the tourism board for people to come visit this old house, and I doubt there would be any takers, since other than age there is no significance whatsoever. Clearly the tax payers of Fishers don't have a significant interest in this project, so PLEASE DON'T USE OUR VALUABLE MONEY. Government money is finite and needs to be utilized for the most efficient and productive purposes. This is far from that.

  5. I only tried it 2x and didn't think much of it both times. With the new apts plus a couple other of new developments on Guilford, I am surprised it didn't get more business. Plus you have a couple of subdivisions across the street from it. I hope Upland can keep it going. Good beer and food plus a neat environment and outdoor seating.

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