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Judge freezes assets of Fishers money manager

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A Hamilton County judge has ordered a temporary asset freeze against prominent Fishers money manager Keenan Hauke, who is being investigated by the Indiana Secretary of State’s Office over financial irregularities involving a hedge fund he operates.

Superior Court Judge J. Richard Campbell on Friday also placed a temporary restraining order against Hauke, CEO of Samex Capital Advisors LLC, from doing business at least until a preliminary court hearing on April 25.

The Indiana securities commissioner's office sought the freeze because it said "good and reasonable cause exists to believe [Hauke and his businesses] violated the Indiana Uniform Securities Act."

A complaint filed by the state against Hauke, Samex Capital Partners LLC and Samex Capital Advisors LLC said Hauke "misled investors by failing to inform them that the funds they were investing would be converted to his personal use."

"Hauke employed a device, scheme or artifice to defraud investors of Samex Partners ..." the complaint says. "Specifically, he sold investments, in the form of hedge fund interests, to investors under the guise that the hedge fund invested in liquid publicly traded securities."

In addition, the complaint says Hauke "intentionally received funds from the bank accounts of Samex Partners that were illegally converted from investors."

Hauke has written a regular investing column for IBJ for nine years. The column was “suspended indefinitely,” on Thursday after the investigation came to light.
Hauke declined to comment on the case when reached Thursday afternoon.

The investigation, launched earlier this week, 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 on Thursday, Noble declined to divulge what the irregularities might include, but said he believed them to be so serious that he resigned from Samex.

“The nature of the financial irregularities I discovered required me to immediately inform the authorities,” he said via e-mail. “As to the full extent of the problem, the authorities will have to examine records and make a determination.”

Hauke’s lawyer, Larry Mackey of Barnes & Thornburg, said in an e-mail that the complaint was filed by a “former and disgruntled” employee who had previously never raised any concerns with Hauke.

Mackey said Noble subsequently sent an e-mail to all of Hauke’s clients soliciting their business for his new financial advising firm.
Noble denied he is trying to drum up business for his new firm, Ternion.

"I did not do this to pilfer clients," he said. "I did this because there were documents that showed really bad things."
 

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  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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