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Fair Finance going along with appointment of receiver

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Attorneys for Tim Durham’s Fair Finance Co. on Wednesday filed court papers saying they don’t object to putting the Akron, Ohio-based company under the control of a receiver.

Attorneys representing Ohio investors in a class-action lawsuit had sought the receivership last week, a move aimed at ensuring money doesn’t disappear while federal securities fraud investigations continue.

In Wednesday’s filing, attorneys with the Indianapolis office of Taft Stettinius & Hollister representing Fair and its parent—a holding company owned by Durham and fellow Indianapolis businessman Jim Cochran—denied any fraud occurred but said putting both firms into receivership nonetheless made sense.

“It is in the best interests of Fair, [its investors] and other creditors that some order and structure replace the wild speculation and reckless accusations that have permeated the environment since Fair’s offices were raided in late November,” Wednesday’s filing said.

Fair has been shut down since the FBI raided its offices Nov. 24. The raid came a month after IBJ reported that Durham and Cochran had used Fair almost like a personal bank since buying it in 2002. The story said the pair, their associates and related firms rung up more than $168 million in insider loans—debt that might imperil Fair’s ability to repay Ohio investors who purchased more than $200 million of the company's investment certificates.

The motion seeking receivership was filed in an Ohio court by David P. Meyer & Associates, a Columbus law firm that filed a class action lawsuit on behalf of investors in December.

On Monday, Ohio bankruptcy attorney David Mucklow filed an involuntary Chapter 7 bankruptcy against Fair, a different strategy aimed at marshaling the company’s assets. Fair’s attorneys have not responded to that filing, though they would be unlikely to favor putting assets under the control of two different courts.

Wednesday’s six-page filing takes aim at the FBI, the news media and Internet message posters, alleging they unfairly damaged Fair’s reputation and knocking it out of business.

“Until … FBI agents stormed Fair’s home office in Akron and seized the computers and business records that it must have in order to operate, Fair had never missed a scheduled interest payment to any of its investment certificate holders. If not for the FBI’s surprise raid and the seizure of the tools Fair needs to do business, the company would likely be making timely payments to its certificate holders today,” the filing said.

“For the past 11 weeks since its offices were raided, Fair, its officers and its affiliates have been subjected to withering—and false—attacks from the media, from Internet commentators, from politicians, and from understandably confused and upset certificate holders.”

Attorney David Meyer of David P. Meyer & Associates could not be reached for comment Thursday morning.

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  • Vendetta?
    Yeah, it's a real vendetta by Greg that Tim stiffed the former owners of Classic Trailers payment of their seller note due JUNE 2009--and it's really Greg's fault Fair Finance was BOUNCING dividend checks way before the October article ran....

    Tim's dream come true would be putting Fair Holdings and Fair Finance into receivorship--the class action attorneys make a quick small fee and the investors are SCREWED because a large part of the assets were transferred to DC Investments!

    I hope members of the Indiana Bar take note of how not to run a lawsuit! Bankruptcy is the appropriate remedy here so the assets frudulently transferred out can be recovered.

    http://fairfinanceinvestors.com/DC_Investments_Loan_Receivables_Investments_-_S.pdf
  • re
    SF, it's over. Get it?

    Only $25,000 on the mortgage application as a loan? Bad! Bad!
  • I mean really...
    I am amazed at how much time and effort so many of you continue to put into Tim Durham and what he is or is not doing. Do any of you have real jobs ~ lives ~ families ~ friends? I mean seriously, its like some of you are living for this... cracks me up!!! I hope you are this dedicated to your loved ones, but then again it would be hard since you are so obsessed w/ TD
  • Yet another lawsuit today against Fair
    http://www.cpclerk.co.summit.oh.us/CaseDetails.asp?CaseID=CV2010020927&CT=C&Suffix=
  • Thoughts
    1) If the car was a 5 year "lease" then it was obviously repossessed since 1) the Bugatti is a 2007 and 2) the dealer selling it on EBAY said the bank is taking a loss, and they told him they had repossessed the car;

    2) Cochran did in fact have an estate sale liquidating thousands and thousands of dollars of items for cash, there were plenty of witnesses and the IP address of the Craigs List ad is irrefutable as is the detective and newspaper reporter reports;

    3) Durham does not want a bankruptcy trustee because a BK trustee would go after ALL entities including DC Investments, which is the arm Durham used to funnel millions to his friends. A trustee can go back four years and up to ten for fraudulent conveyances, and a bankruptcy trustee would uncover lots of secrets that time makes go away;

    4) A great site for everyone to peruse to view the relationship between Tim Durham and Laikin, as well as other friends is
    http://www.fairfinanceinvestors.com. Look at documents/loans link on the left, and view the Dan Laikin purported "loans" and how ludicrous the "documentation is." Do the same with the DC Investments purported "loans."

    PS, DS McKain refers to Scott McKain. Why am I not surprised to see his name on the "loans" list--do I recall a comment he allegedly made on this board where he claimed he hadn't taken money from Durham! Someone deleted it shortly later.
  • Clever move by Durham...BUT
    notice he makes no disclosure of his finances--clever move to "attack" but a complete waste of time as it is obvious he does not have the ability to pay back most or even a large part of the money.

    So, he now says the Bugatti was a "lease." Too bad he didn't mention whether the bank repossessed it, which is my guess because the bank took a writedown on the note.

    Too bad Durham doesn't mention he failed to make the seller note payment to the owners of Classic Trailer in June, and that he remains in default.

    Too bad Durham didn't mention the UCC filings for the various friends houses reflect no current liens for Fair Finance, Fair Holdings and DC Investments. Conpare the UCC filngs against the purpoted "loans" Tim is now submitting to the Ohio Department of Securities and ask yourself why there is such a disparity.

    Or, how about a certain attorney who, acting on behalf of Tim, drove over and told the Amish newspaper editor that poor little Timmy was such a victim, and that he only wanted to borrow another $600,000! He didn't understand WHY the Ohio Department of Securities said "no!"

    It's all coming out, slowly but surely. IBJ et al did not "ruin" Tim Durham. Tim Durham was handed millions of dollars of money he had no business having access to, and he spent that money on a lavish lifestyle to pretend he was the richest guy around. Pretty ironic that Tim Durham bragged to the Indianapolis Monthly that he would "sue" IBJ if they ever wrote about "insider trading at Brightpoint," especially given the records he submitted to Ohio's Department of Securities that show, in fact, he comingled Brightpoint stock with none other than Dan Laikin, in an account in Tim's name, on the very day he announced his "investment group to buy Brightpoint."

    Tim Durham should make things simple and submit audited financials to the Ohio Department of Securities, which he has refused to do, and account for every cent of the money. No one forced him to remove his filing from Ohio; rather, he withdrew his latest offering because he could not articulate a plausible response to simple questions like why Dan Laikin was given millions of dollars of loans (at the very time Tim was buying Brightpoint in the comingled account with Dan's Brightpoint stock) that were continually extended, and INCREASED, with no repayment from Laikin, to the tune of no less than $15Milion, so Laikin could among other things buy himself yet another multi-million dollar mansion, 8159 Hollywood Blvd.

    There are so many egregious things that happened with Durham, that are so obvious to any with half a brain, it would be a waste of time to write any more. Wait for the evidence to come out. And, in the interim remember to use your cell cameras and film Tim et al each and every time you see them doing something suspicious.

    Kudos once again to the IBJ for staying on top of this developing story.
  • ultimately bankrupt
    Even if a receiver is appointed, wouldn't the company still have to file bankruptcy if it is unable to meet its financial obligations?
  • re
    teh reason Tim wants to agree to the class action receivor versus the bankruptcy receivor is the class action only gets to deal with "now." The bankruptcy receiver can go back up to ten years on fraudulent conveyances. If you actually study the documents you can see that Tim divied up the money some time ago, so the BK receiver definitely makes more sense if the victims hope to get any money.

    As for criminal charges, Tim is by no means out of the closet, nor are his buddies who bought millions in houses without disclosing to their mortgage companies that the downpayments were coming from Fair. There is so much that will come out in this investigation, and of course there is still the separate issues of whether or not Durham et al will be charged with insider trading.
    • good riddance
      Read the documents submitted by Fair. A full quarter of Fair's loans to DC Investments were written off. 21 million out of 85.
    • Man, you guys are onto something
      Wow, I think you two are onto something. I'm sure the FBI just jumps headfirst into investigations based on nothing but "jealousy." Yes, this was a huge plot to shut down Tim "the saint" Durham b/c the FBI was jealous of him. Seems plausible to me.
    • Finally
      I was wondering when they were finally gonna have a response. The feds would have frozen everything a long time ago if they had a case. They are proly looking for something smaller to get them on to save face
    • More Claptrap
      " Until the FBI....Fair had NEVER missed a scheduled interest payment to any of it's certificate holders..."

      Looks like the Fair Financial customers were hit by the IBJ's mud-slinging vendetta against Tim Durham....
      ..a vendetta which IBJ will never admit to, or comment upon...
    • Too Late
      Fair's attorneys don't mind recievership being appointed because everything has been SOLD!!
    • timmy
      fyi
    • Silliness
      Look at the numbers in this court filing. So you've gotten control of Fair. All that does is give you control of LOANS RECEIVABLE, most are owed by Durham and various affiliates. The only money you will see from Fair itself are funds from the good paying/non-Durham customers.

      Get the assets frozen and you might get a little more; however, the reality is that the losses from this one are going to be huge. So sorry!

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