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Fair Finance investors file motion for receiver to control assets

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Some investors in Tim Durham’s Fair Finance Co. filed court papers Thursday asking a court to appoint a receiver—a move aimed at preventing assets from disappearing while federal investigations into a possible Ponzi scheme continue.

Lawyers for investors made the request as part of a class-action lawsuit they filed in December seeking to recover money for Ohio residents who purchased $200 million in unsecured investment certificates from Akron, Ohio-based Fair.

The motion for a receiver was spurred by media and blog reports indicating Fair’s co-owners, Durham and fellow Indianapolis businessman Jim Cochran, may be unloading cars and other assets acquired with investors’ money.

“The remaining Fair Finance assets are in imminent danger of being siphoned away by Durham and Cochran now that their Ponzi scheme has been exposed,” according to the motion filed by the Columbus, Ohio, law firm David P. Meyer and Associates.

Investors have been frustrated with Tim Morrison, the U.S. attorney for the Southern District of Indiana, for not pursuing legal action to lock down Fair’s assets and those of Cochran and Durham

Morrison’s office on Nov. 24 filed a civil lawsuit seeking to seize Durham’s Geist mansion and other assets, but dropped it six days later. “Having received appropriate assurance [that assets] are not being dissipated, that litigation stopped,” Morrison said at the time. He has declined to elaborate.

His office filed the suit 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 that he, his associates and related firms rung up more than $168 million in insider loans—debt that might imperil Fair’s ability to repay the Ohio investors.

The motion seeking a receiver was filed in Summit County, Ohio. It asks that the receiver take control of Fair and and its parent, Fair Holdings, which is owned by Durham and Cochran.

The FBI on Nov. 24 raided the offices of both firms. Neither man has been charged with a crime. Each has denied wrongdoing.
 

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  • Better aim...for better addtion skills
    You lost me from the start: How does "litteraly immediately" one day after
    August 27,2002 = August 8, 2002?

    Seriously, you're doing a fine job, but maybe you're due a little break from pouring over all the documentation...it'll be there tomorrow. Besides, why should you have to do all the work for the Feds?
    RELAX and enjoy the game tonight.
  • Look at this!
    Bad! Bad!

    http://fairfinanceinvestors.com/DC_Investments_Loan_Receivables_Investments.pdf
  • Martha Y
    I am sorry that your parents or any other investor is hurting, nobody likes to hear about anyone with pain or suffering ~~~~ however, I have to believe your parents were smart enough to know that they were investing in UNSECURED financing, it was clearly NOT FDIC insured, and they were getting a much HIGHER return than they would have gotten in any other type of investment. Therefore, I have to say that your parents need to own up to the fact that they knew the risk and they did have access AT ALL times to clearly read in black in white that their money was being used to invest in real estate, cars, etc. Again ~ I am not saying that its not sad they have lost everything, but they themselves had a little greed to have chose this investment route. I am just saying....
  • Unsecured Risks...?
    I read all of these stories about how people invested their savings into Fair Finance. Did these people(investors) fail to recognize the phrase "UNSECURED" on the certificates? Or ask why Fair's return on the investments was so generous, far greater than what the bank offers?
  • Re
    I am reading the messages all the way through on this and other boards because my parents have more than $150,000 of their savings in Fair and my father is too upset to even get dressed. Lot of jokesters on the other messages that think this is funny. It's not. Ironic the 1099s are mailed out from Fair but my parents can't collect any interest or get their certificates cashed in because no one is answering the phones or showing up at the offices. I know for certainty neither of them would have touched Fair Financial with a ten foot pole if they had known Timothy S Durham and James F Cochran were running amuck buying mansions and Bentleys and the like.

    For the jokesters posting on this and other boards, this is not a game. My parents and several members of their church have lost the bulk of their savings and I cannot tell you the stress this is causing, or the fabric of a church community that has been torn apart because of the avarice of two men who needed to support a lifestyle that did not belong to them. While I wish they would come clean and just own up to their fraud I don't think that will happen, and so my parents and the other investors are left penniless and with empty dreams. For that alone these guys who should be locked away for the rest of their natural lives.
  • 1099s--Fair Finance
    1099s are out to the investors so obviously someone is doing accounting work--and probably collecting payments from those with legitimate receivables accounts due Fair.

    Unfortunately most receipts of cash are probably going to attorneys. Way to go Durham and Cochran. Way to go.

    http://www.ohio.com/news/break_news/83491992.html
  • Gone like the wind
    Ã?¢ââ??¬Ã?â??The remaining Fair Finance assets are in imminent danger of being siphoned away by Durham and Cochran now that their Ponzi scheme has been exposed,Ã?¢ââ??¬Ã?Â? according to the motion filed by the Columbus, Ohio, law firm David P. Meyer and Associates.,,,,imminent danger of being siphoned away was like november and december...February...they"ve left the building like elvis left market square in 77.
  • Morrison's Ineptitude
    Morrison needs to come clean. The nonsense about assurances and his refusal to unseal the documents are farcical. The WSJ and the IBJ will not simply go away. Morrison's actions and inactions are causing massive pain and losses to the innocent, albeit gullible and naive. Darkness hates the light. Dig into Morrison's actions and statements and you will find a crime.
  • What's left
    Now that we know the Bugatti equity is gone (zip) and many of his cars are leveraged, the houses are mortgaged, the businesses are insolvent, seller note on Classic is in default, the art has been crated and is "gone," the jewelry is where? The cash is being spent on stupid things like a $40,000 a month lease in Beverly Hills, blah blah blah...what's left to collect?

    The net value of remaining receivables, some of which are collectible. My bet is maybe $20Million and the trustee and the lawyers will take their cut first.

    Tim Durham and Jim Cochran should be arrested, house in separate state jail facilities, not a federal pen, with a $25M cash bond each required. They post bond, great, that's $50M in a goverment account that can go back to victims and won't go to lawyers. They don't post bond, then they can sit in jail and think about whether the parties and alleged swinging lifestyle for you know who and the private jets and pretend phone calls from Britney Spears to impress the Indpls Monthly writer, and all the other crap was worth it.

    While they are at it, they should charge Carl Brizzi for securities fraud and tax evasion and put him in a jail with on bail until he takes a lie detector test and tells the truth about EVERYTHING.

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