ILNews

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

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. My husband financed a car through Wells Fargo In dec 2007 and in Jan 2012 they took him to court to garnish his wages through a company called autovest llc . Do u think the statue of limitations apply from the day last payment was received or from what should have been the completion of the loan

  2. Andrew, you are a whistleblower against an ideologically corrupt system that is also an old boys network ... Including old gals .... You are a huge threat to them. Thieves, liars, miscreants they understand, identify with, coddle. But whistleblowers must go to the stake. Burn well my friend, burn brightly, tyger.

  3. VSB dismissed the reciprocal discipline based on what Indiana did to me. Here we have an attorney actually breaking ethical rules, dishonest behavior, and only getting a reprimand. I advocated that this supreme court stop discriminating against me and others based on disability, and I am SUSPENDED 180 days. Time to take out the checkbook and stop the arrogant cheating to hurt me and retaliate against my good faith efforts to stop the discrimination of this Court. www.andrewstraw.org www.andrewstraw.net

  4. http://www.andrewstraw.org http://www.andrewstraw.net If another state believes by "Clear and convincing evidence" standard that Indiana's discipline was not valid and dismissed it, it is time for Curtis Hill to advise his clients to get out the checkbook. Discrimination time is over.

  5. Congrats Andrew, your street cred just shot up. As for me ... I am now an administrative law judge in Kansas, commissioned by the Governor to enforce due process rights against overreaching government agents. That after being banished for life from the Indiana bar for attempting to do the same as a mere whistleblowing bar applicant. The myth of one lowly peasant with the constitution does not play well in the Hoosier state. As for what our experiences have in common, I have good reason to believe that the same ADA Coordinator who took you out was working my file since 2007, when the former chief justice hired the same, likely to "take out the politically incorrect trash" like me. My own dealings with that powerful bureaucrat and some rather astounding actions .. actions that would make most state courts blush ... actions blessed in full by the Ind.S.Ct ... here: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS

ADVERTISEMENT