Financial Advisor in Indiana Convicted in Ponzi Scheme Worth $7 Million

February 08, 2012 (Press-News.org) Financial Advisor in Indiana Convicted in Ponzi Scheme Worth $7 Million

From 2004 until 2011, Keenan Hauke was a respected financial advisor and investor. His clients included friends and his hometown residents. He now faces 25 years in prison and a $250,000 fine for securities fraudfor actions perpetrated during that time.

It began when Hauke incorporated Samex Capital Partners, a hedge fund, in 1999. In 2004, the fund lost millions of dollars in a bad real estate deal in Michigan. Rather than admit he lost the money, Hauke solicited more investors to pay off Samex's financial obligations.

Hauke let go of the firm that generated financial statements for his investors, instead forging his own documents to hide his financial troubles. Hauke also used investor money for personal use, using $200,000 on his own mortgage, for example.

Hauke had a strong professional reputation stemming from his appearances on television and radio shows during which he gave financial advice. He also wrote a weekly column for the Indianapolis Business Journal, which lent credence to his investing savvy and partially explained the supposed steady increase in investor funds.

White Collar Crimes Carry Strict Sentencing

In recent years, the Securities and Exchange Commission has placed a high priority on prosecuting Ponzi schemes like Hauke's. The SEC has brought over 100 enforcement actions against 250 entities for Ponzi schemes since 2010.

By its nature, a Ponzi scheme will eventually collapse. The Ponzi scheme will be revealed any time a significant number of investors ask for a return on their funds or when there is a significant decrease in the number of new investors. In Hauke's case, a whistleblower tipped off the SEC to Hauke's actions. The Indiana investor, once discovered, made no attempt to hang on to his company. His investors have little chance of any significant amount of returns; even his home in Florida was worth less than the existing mortgage.

It does not take a violent crime to run the risk of significant jail time. Both state and federal authorities are continuing to crack down on fraud of all types, whether it is credit card fraud, mortgage fraud or defrauding investors. If you have been charged with a white collar crime, contact a criminal defense attorney experienced in defending financial crimes.

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