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Durham poised to turn over proceeds of mansion sale

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Investors in Tim Durham’s failed Fair Finance Co. may end up with some of the proceeds from the sale of the financier’s multimillion-dollar Geist Reservoir home.

Kelly Burgan, an attorney for bankruptcy Trustee Brian Bash, said counsel for Durham acknowledges he owes millions of dollars to Fair and is turning over artwork and selling assets to reduce the loan balance.

“Based on our discussions with counsel for Mr. Durham, it is our understanding that Tim intends to turn over the proceeds from the sale of any of his real property,” Burgan said.

Gary Sallee, an attorney for Durham, did not respond to phone messages.

IBJ reported Saturday that Durham has listed his 10,700-square-foot Fortville home with an asking price of $5.5 million. The listing agent, Paul Bates of Paul Bates Realty Group, describes the 5-acre property as a “car collectors’ dream home,” featuring a 30-car garage. It also boasts seven bedrooms, eight full bathrooms and “multiple” wet bars.

Durham also has turned over to the bankruptcy trustee numerous pieces of art, including paintings by pop icon Peter Max. The trustee is in the process of hiring an auctioneer to sell the artwork.

Hamilton County property records show Shelby County Bank, part of  Shelbyville-based Blue River Bancshares, has first dibs on proceeds from the home's sale. The property serves as collateral on a line of credit with $1.9 million outstanding. Blue River Chairman Russ Breeden on Monday declined to comment on his bank’s dealings with Durham.

Records filed with securities regulators show Durham used Akron, Ohio-based Fair like a personal bank after buying it in 2002, with money flowing to support an ostentatious lifestyle, friends and business associates, as well as other companies he owned. The records show he withdrew tens of millions under a line of credit and that he and associates borrowed even larger sums through businesses they controlled.

Related-party loans now top $168 million and represent the primary asset available to pay Ohio residents who purchased more than $200 million in unsecured investment certificates from Fair. After FBI agents raided Fair offices in November, the company halted payments on the certificates, which were supposed to pay interest rates as high as 9.5 percent.

Durham, 47, has denied doing anything wrong. His attorneys say in court filings that Fair Finance provided prospective purchasers of Fair's investment certificates offering circulars that disclosed insider loans and other risks.

However, investigators are trying to build a case that Durham duped investors. 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.

(For a roundup of IBJ's coverage concerning Durham and Fair Finance, click here.)
 

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  • Is it true that
    Gary Sallee (Durhams attorney) is the same person who co owned Playa Del Racing who received $804,000 from Fair Finance/Fair Holding (according to some records)?
    But remember, innocent until proven guilty. I learned that from Law n Order.
  • GCC
    Could always convert the property into a country club exclusive to FF investors. With Durham as the parking valet.
  • How can this happen??
    As I read all these articles, I am just amazed that people can buy these properties/mansions and just walk away with little or no consequence. Half of the properties at Geist are upside down!! Who is going to pay for these losses?? Is it the taxpayers?? If so, then someone is not doing their job. I miss one credit card card payment and they have have my phone number on speed dial for the entire duration until it is paid. Sad, that the little people have to work hard to pay their bills and nothing has been done to recoup the money for the Fair Finance investors. Where is the justice??
  • Famous words
    Money Laundering 101: Purchase an asset in own name by getting a mortgage. Steal money, them pay off mortgage shortly later so money stolen is now in form of the asset purchased.

    "On Nov. 30, U.S. Attorney Timothy Morrison mysteriously withdrew the request for seizure of Durham's properties and banking accounts on grounds that the assets in question "would not dissipate."
  • No ethics, no taste
    Durham says he "has done nothing wrong," but will allow the proceeds of his home sale (he's upside down so the will be none)to be given to Fair Finance. Where he did nothing wrong...by using Fair as a personal checkbook.

    If Peter Max is Durham's idea of collectible art, there won't be much got from the sale of his "fine art."
    These contradictions would be laughable if not for so many people being gutted of their life savings.
  • Fair Finance Investors Keep Taking Tim Durham's Human Booster Shot
    Yeah those Fair Finance Investors are not going to see nuttin..
  • Net proceeds? Hah!
    If, as reported recently, there's a $3.5 million mortgage PLUS $1.9 million outstanding on a line of credit, then the $5.5 million sale price isn't even sufficient to pay the brokerage fee, let alone reduce his debt to Fair investors.
    • Silly
      Option rights mean nothing....the odds of this going anywhere are 10,000: 1. Even if our boy beats the odds, they'd be no payday until about 2015 at the earliest.
    • TD being TD
      TD is always trying to make some jingle.

      National Lampoon doc in the works
      4th Row Films duo option rights to comedy banner's story
      By GORDON COXDouglas Tirola and Susan Bedusa of 4th Row Films are gearing up to make a documentary about National Lampoon.
      Duo optioned the rights to the comedy banner's story and archives for the movie, to be directed by Tirola. Access to the archives will include the use of previously unseen footage. Shooting begins next month.

      National Lampoon started as the Harvard Lampoon magazine, which was influential in the 1970s, before being spun off into a wide array of properties including books, radio shows, theater events and movies, notably "National Lampoon Animal House" and "National Lampoon's Vacation."

      Deal for the untitled docu was negotiated by Tirola and Bedusa with National Lampoon's Tim Durham.

      Tirola previously helmed "All In: The Poker Movie" and Tribeca alum "An Omar Broadway Film," bowing on HBO next month. Both were produced by Tirola and Bedusa.


      Read the full article at:
      http://www.variety.com/article/VR1118020361.html
      Remember inocent until provine guilty.
      • Go Tim!!
        Go Tim!
        Rip em off like Bernie "Made-off." Hope you and Burnie become very close cell mates in the near future. You are a small-town Seymour Fool-- who fooled nobody!
      • Property Taxes
        Paul Bates better sell the property FAST! Otherwise it will be going to Sherriff's Sale later this year. Mr Durham hasn't paid the property taxes and a after 3 delinquent payments it goes to auction.

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