The head of a Fishers-based investment company who defrauded clients out of more than $7 million was sentenced to 10 years in prison Friday.
Keenan Hauke, 40, of Fishers, pleaded guilty to securities fraud, a charge that carries a maximum penalty of 25 years in prison and a $250,000 fine, RTV6's Jack Rinehart
Hauke, the owner and CEO of Samex Capital, defrauded 67 people from 2004 to 2011, with one investor losing $580,000.
Hauke falsely told investors that there were high rates of return from a fund he put their money into. They also said that funds from new investors were used to pay off those who closed their accounts, commonly known as a Ponzi scheme.
Prosecutors said he spent victims' retirement funds and life savings to finance his lavish lifestyle, including European vacations and a condominium in the Caribbean.
"We have one victim who is going back to work. One of them is 75-years-old and has lost their life savings. What we did today was hold Mr. Hauke accountable for that, and he deserves it," Assistant U.S. Attorney Steve DeBrota said.
"I've never met anyone like this. He's just as dishonest as they come. He's a horrible person. We've just been duped all the way around, all of us," victim Amy Edmonds said.
A former employee resigned from the company in April and provided information to authorities that led to the charges.
As part of his plea agreement, Hauke was ordered to pay restitution when he is released from prison.
Hauke was a regular investment commentator on several national cable networks. Securities officials are trying to recover the victims' losses.
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