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Bankruptcy trustee sues Durham art bidders

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A Florida art dealer who successfully bid more than $260,000 on artwork last month that formerly belonged to Fair Finance Co. co-owner Timothy Durham says he canceled the sale.

And now he and another big bidder from Philadelphia are being sued by Fair Finance bankruptcy trustee Brian Bash for nonpayment on numerous pieces of work by contemporary artist Peter Max as well as Picasso and Norman Rockwell.

The two bidders combined represent about $300,000 of the more than $400,000 raised at the auction, held Oct. 16 at Trinity Cathedral in Cleveland. Proceeds from the auction are intended to partially repay Fair Finance's thousands of creditors, many of whom are elderly Ohio residents who bought more than $200 million of the Akron firm's apparently worthless investment certificates.

Both bidders on Tuesday said they were unaware of the breach-of-contract lawsuits, which were filed Monday in U.S. Bankruptcy Court in Akron.

Proceeds from the auction will go into the estate of Fair Finance for eventual distribution to thousands of creditors. Still, it's a drop in the bucket compared with the more than $200 million that an estimated 5,300 Ohio residents had invested in the company, which is under investigation.

In a court filing late last year, the U.S. Attorney’s Office in Indianapolis alleged Durham was operating a Ponzi scheme, using money from the sale of new investment certificates to pay off prior purchasers, but no chages have been filed.

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  • witchhunt
    Greg,you better hope someone goes down on this or it probably will be you getting sued also your boss man,who we know is behind all of these stories,also someone named Simon is watching.I bet you wont post this
  • IBJ Please Reprint This
    In response to Tim's stirring interview on WTHR please reprint your article of Feb 21, 2005. Obsidian was losing money back in the hey day as it ALWAYS did. Fair Finance was even mentioned in that article as funding source. That was 5 years ago Tim? And the raid is what put you under? Also love how you claimed you gave all those personal assets to the people in Ohio. You forgot to mention they are basically worthless to them as you are over leveraged. How did Fair record any interest income when the related parties never paid cash interest? Take it that it was just added to the loan balance? That is a Ponzi scheme.
  • Is this the same TD?
    Is this our TD? I do see Nat. City and First Franklins (Indiana) name? I could be mistaken. Anybody know the answer?

    Legal 477

    http://www.pikecountygeorgia.com/archives/1815-Public-Notices.html

    Notice of Sale Under Power
    Georgia, Pike County
    Because of default in the payment of the indebtedness, secured by a Security Deed executed by Tim Durham to Mortgage Electronic Registration Systems, Inc. as nominee for First Franklin a division of Nat. City Bank of IN, its successors and assigns dated July 26, 2006 in the amount of $271,800.00, and recorded in Deed Book 660, Page 89, Pike County, Georgia Records; as last transferred to U.S. Bank National Association, as trustee, on behalf of the holders of the First Franklin Mortgage Loan Trust 2006-FF14 Mortgage Pass-Through Certificates, Series 2006-FF14 by assignment; the undersigned, U.S. Bank National Association, as trustee, on behalf of the holders of the First Franklin Mortgage Loan Trust 2006-FF14 Mortgage Pass-Through Certificates, Series 2006-FF14 pursuant to said deed and the note thereby secured, has declared the entire amount of said indebtedness due and payable and pursuant to the power of sale contained in said deed, will on the first Tuesday in December, 2010 , during the legal hours of sale, at the Courthouse door in Pike County, sell at public outcry to the highest bidder for cash, the property described in said deed to-wit:
    All that tract or parcel of land lying and being in Land Lot 153 of the 2nd District, Pike County, Georgia, being Lot 10, Oak Grove Subdivision, Phase I, as per Plat recorded in Plat Book 23, Pages 129-131, Pike County, Georgia records, which recorded Plat is incorporated herein by this reference and made a part of this description.
    Tax ID#: 086-210
    Which has the property address of 333 Oak Grove Path, Zebulon, Georgia., together with all fixtures and other personal property conveyed by said deed.
    The sale will be held subject to any unpaid taxes, assessments, rights-of-way, easements, protective covenants or restrictions, liens, and other superior matters of record which may affect said property.
    The sale will be conducted subject (1) to confirmation that the sale is not prohibited under the U.S. Bankruptcy Code and (2) to final confirmation and audit of the status of the loan with the holder of the security deed.
    Notice has been given of intention to collect attorneysâ?? fees in accordance with the terms of the note secured by said deed.
    Said property will be sold as the property of Tim Durham and the proceeds of said sale will be applied to the payment of said indebtedness, the expense of said sale, all as provided in said deed, and the undersigned will execute a deed to the purchaser as provided in the aforementioned Security Deed.
    U.S. Bank National Association, as trustee, on behalf of the holders of the First Franklin Mortgage Loan Trust 2006-FF14 Mortgage Pass-Through Certificates, Series 2006-FF14
    Attorney in Fact for
    Tim Durham
    Anthony DeMarlo,
    Attorney/smagnuson
    McCurdy & Candler, L.L.C.
    (404) 373-1612
    www.mccurdycandler.com
    File No. 09-17848 /CONV
    This law firm is acting as a debt collector and is attempting to collect a debt. Any information obtained will be used for that purpose.
    11/10, 17, 24, 12/1 gpn11

  • Trustee report
    I did not see an updated trustee report that was do Nov. 16th on

    http://www.kccllc.net/FairFinance

    website? Anybody know why?
  • How unluckey can one man be?
    TD is real unluckey, in love, stock investments, now this. I'm sure he is wishing this year ends soon.

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  1. A Tilted Kilt at a water park themed hotel? Who planned that one? I guess the Dad's need something to do while the kids are on the water slides.

  2. Don't come down on the fair for offering drinks. This is a craft and certainly one that belongs in agriculture due to ingredients. And for those worrying about how much you can drink. I'm sure it's more to do with liability than anything else. They don't want people suing for being over served. If you want a buzz, do a little pre-drinking before you go.

  3. I don't drink but go into this "controlled area" so my friend can drink. They have their 3 drink limit and then I give my friend my 3 drink limit. How is the fair going to control this very likely situation????

  4. I feel the conditions of the alcohol sales are a bit heavy handed, but you need to realize this is the first year in quite some time that beer & wine will be sold at the fair. They're starting off slowly to get a gauge on how it will perform this year - I would assume if everything goes fine that they relax some of the limits in the next year or couple of years. That said, I think requiring the consumption of alcohol to only occur in the beer tent is a bit much. That is going to be an awkward situation for those with minors - "Honey, I'm getting a beer... Ok, sure go ahead... Alright see you in just a min- half an hour."

  5. This might be an effort on the part of the State Fair Board to manage the risk until they get a better feel for it. However, the blanket notion that alcohol should not be served at "family oriented" events is perhaps an oversimplification. and not too realistic. For 15 years, I was a volunteer at the Indianapolis Air Show, which was as family oriented an event as it gets. We sold beer donated by Monarch Beverage Company and served by licensed and trained employees of United Package Liquors who were unpaid volunteers. And where did that money go? To central Indiana children's charities, including Riley Hospital for Children! It's all about managing the risk.

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