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Hauke receiver files suit to recover $600k from Arizona investor

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The receiver representing investors in the Ponzi scheme run by convicted money manager Keenan Hauke has sued to recover nearly $600,000 in improper payments made to an Arizona investment fund.

And he says he has a handful more investors to pursue.

Carmel attorney William Wendling Jr. filed suit in federal court in Indianapolis against Larcher Investments LP and one of its managers, David Larcher. Larcher is executive vice president of Vestar Development, a Phoenix-based real estate developer.

The lawsuit claims that Larcher deposited about $2 million into Hauke’s Fishers-based hedge fund, Samex Capital Partners LLC, through a series of payments and reinvested profits in 2002, 2004 and 2005.

Then, in 2008, Hauke wired Larcher nearly $2.6 million, describing the extra money as a gain on Larcher’s investments.

But Samex had not been generating legitimate investment returns since a real estate investment had gone sour in April 2004. Instead, Hauke was paying off earlier investors with money he raised from later investors.

As a result, Wendling claims, Larcher received $593,040 that actually came out of the pockets of other investors.

“I want this to be crystal clear: the people we’re asking money back from did nothing wrong,” Wendling said. But, he added, “whatever profits they received were not really profits.”

Larcher did not return a phone call seeking comment on the lawsuit.

Wendling was appointed receiver of Samex Capital in June but could not proceed with his work until the conclusion of investigations by the Indiana Secretary of State’s Securities Division and the FBI.

Hauke pleaded guilty to fraud in December and in March was sentenced to 10 years in prison. He also was ordered to make restitution of $7.1 million, the amount the court determined he swindled from 67 investors.

Wendling said he is still compiling the list of investors that, like Larcher, received payments that were higher than the amounts they originally invested and any legitimate gains their money generated before Hauke’s fraud began.

He expects to have discussions with “a handful” of other investors and, if necessary, also file lawsuits against them. In all, Wendling estimated, there are likely $1 million to $2 million in excess payouts that could possibly be recovered.

Prior to the fraud investigation, Hauke was a high-profile wealth manager who made regular appearances on CNBC, Fox Business Network, Bloomberg Television and Bloomberg Radio. He also wrote an investing column in IBJ.

This article original ran in the April 11, 2012, IBJ Daily. The Indianapolis Business Journal is a sister publication of Indiana Lawyer.

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  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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