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Fraud suspect Durham released from halfway house

Scott Olson
April 11, 2011
Keywords
Banking & Finance, Courts, Fraud, Investing, Investment Losses, Judges, Law, Legal Issues, Obsidian Enterprises, Securities fraud
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A federal magistrate granted the release of Tim Durham from a halfway house on Monday after the indicted financier produced a more thorough accounting of his finances.

Magistrate Kennard Foster, unsatisfied with Durham’s financial disclosures, ordered him on April 6 to a halfway house at 611 N. Capitol Ave. in Indianapolis operated by Volunteers of America of Indiana Inc.

On Monday, Durham produced a 20-page statement that met Foster’s approval. The document is sealed to the public.

Durham, 48, is charged with 12 felony counts, including conspiracy to commit wire and securities fraud. He and two business partners, James Cochran and Rick Snow, are accused of defrauding about 5,000 investors in Akron, Ohio-based Fair Finance Co. of more than $200 million.

Durham, whose whereabouts will be monitored by a GPS tracking device, will stay at an undisclosed location. Durham’s lawyer, Howard Srebnick of Miami, said he would not stay at the 10,700-square-foot estate Durham previously owned at Geist Reservoir.

Durham was arrested March 16 at his home in Los Angeles.

A federal magistrate in Los Angeles on March 21 ordered Durham, who lives in California, released on $1 million bond. The bond was posted by Joan and Beurt SerVaas, Durham’s ex-wife and her father.

Foster on Monday ordered Durham to secure the surety bond within seven days. Srebnick told Foster that “we have property that is worth double the value of the bond, free and clear of any encumbrances, owned by Beurt SerVaas.”

A jury trial is set for June 8, 2012.

More of IBJ's coverage of Tim Durham and Fair Finance can be found here.

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  • re
    Braindeadormissing IndyApril 11, 2011 5:44 PM
    Um, did you read anything? Who gets a loan for $20M for 8 years without making a single interest or principle payment like Tim's buddy Dan and without securing the necessary UCC filings to perfect the loans? And the same situation for every single person Durham handed money to? As in the tune of over $100M.

    Glad to know you have voting rights, now I understand how Obama got elected.

    Too bad the judge didn't make Timmy turn in actual bank and brokerage statements. Hey Judge Foster, Tim has no net worth. The only money to his name he wanted to have discussed in a private hearing so his creditors can't garnish the money he needs to pay Roy with. HELLO. In a divorce proceeding would you let me show a voodoo excel spreadsheet? Nah, I'd have to show deposits and checks for the last five years and all savings and brokerage accounts.

    Only in Indy, imbeciles continue to reign along with the greatest hub of white collar crime.
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  • Just a Thought
    superindyApril 11, 2011 4:35 PM
    When you think about it, Durham and Cochran went terrible money manager, and engaged in questionable behavior, however, I dont think it constitutes fraud. I mean them taking out loans they couldn't repay is no worse that someone who spends more on credit cards that they can afford to repay.
    Reply to CommentFlag Comment

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