Conviction Stands Despite Lawyer’s Affair With Client’s Wife

A hedge fund founder is stuck with his securities fraud conviction even though his attorney had an affair with and later married the defendant’s then-wife, an Indiana federal district judge said.

Keenan R. Hauke argued that the relationship constituted ineffective assistance of counsel. But he waited too long to file his motion for relief, the U.S. district Court for the Southern District of Indiana said Wednesday.

Hauke hired Larry Mackey to represent him after a joint state-federal fraud investigation began in 2011. Mackey advised Hauke to confess and counseled him about plea negotiations, Judge Tanya Walton Pratt’s order said.

The ...