IBJNews

Fair Finance trustee sues National Lampoon

Back to TopCommentsE-mailPrintBookmark and Share

Fair Finance Co.’s bankruptcy trustee this week sued National Lampoon Inc. seeking to recover millions of dollars that indicted financier Tim Durham provided the ailing Los Angeles-based comedy business over the past decade.

Durham, who served as CEO of Akron, Ohio-based Fair before its collapse two years ago, “fraudulently transferred at least $9 million of Fair’s money to National Lampoon," where he is a major investor, according to the suit filed in the U.S. District Court for the Central District of California.

“To disguise the origin of the transfers to National Lampoon, Durham typically funneled” the Fair funds through a variety of other companies he controlled, the suit alleges.

Durham has been on Lampoon’s board since 2002 and has been its CEO since 2008. The money went toward covering Lampoon’s losses, the suit alleges. The company lost $37 million from 2002 until it ceased filing financials with the Securities and Exchange Commission two years ago.

In his lawsuit, Fair Trustee Brian Bash acknowledges it’s unlikely National Lampoon would be able to fully repay the transfers. He asked the court to impose a permanent injunction barring the firm from selling assets without court approval and preventing the transfer of funds to insiders.

A federal grand jury in March indicted Durham and fellow Fair insiders Jim Cochran and Rick Snow on 12 felony counts.

Authorities say that after Durham bought Fair in 2002, he doled out  related-party loans with abandon, leaving the company unable to repay Ohio residents who purchased unsecured investment certificates boasting interest rates as high as 9.5 percent. More than 5,200 investors are owed more than $230 million.

Durham, Cochran and Snow have denied wrongdoing.

Bash, the Fair bankruptcy trustee, alleges Durham “utterly looted” Fair, burning through millions of dollars to support a lavish lifestyle and insolvent businesses he controlled.

Bash said this month that he has recovered about $2 million since he began filing lawsuits and taking other steps to recover money for investors in early 2010. The investors have not yet received a distribution from the recovery.




 

ADVERTISEMENT

  • Sue Cindy Landeen too
    Why don't they Cindy Landeen for the $750k that Durham loaned her for running the Alternate Billing Corp. in Minnesota. The FBI shut it down and I think they are still investiagating the camming scam they were running.
  • Shades of Animal House
    To quote National Lampoon's greatest movie, "Fat drunk and stupid is no way to go through life"
  • Sue Mitch Daniels too
    Why don't they sue Mitch Daniels for the $200k of Durham contribution that he refuses to return, even now that he currently claims he won't be running for another office??
  • Durham, Cochran and Snow?
    Durham, Cochran and Snow? Sounds like Dewey, Cheatem and Howe.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Gay marriage is coming, whether or not these bigots and zealots like it or not. We must work to ensure future generations remember the likes of Greg Zoeller like they do the racists of our past...in shame.

  2. Perhaps a diagram of all the network connections of all politicians to their supporters and those who are elite/wealthy and how they have voted on bills that may have benefited their supporters. The truth may hurt, but there are no non-disclosures in government.

  3. I'm sure these lawyers were having problems coming up with any non-religious reason to ban same-sex marriage. I've asked proponents of this ban the question many times and the only answers I have received were religious reasons. Quite often the reason had to do with marriage to a pet or marriage between a group even though those have nothing at all to do with this. I'm looking forward to less discrimination in our state soon!

  4. They never let go of the "make babies" argument. It fails instantaneously because a considerable percentage of heterosexual marriages don't produce any children either. Although if someone wants to pass a law that any couple, heterosexual or homosexual, cannot be legally married (and therefore not utilize all legal, financial, and tax benefits that come with it) until they have produced a biological child, that would be fun to see as a spectator. "All this is a reflection of biology," Fisher answered. "Men and women make babies, same-sex couples do not... we have to have a mechanism to regulate that, and marriage is that mechanism." The civil contract called marriage does NOTHING to regulate babymaking, whether purposefully or accidental. These conservatives really need to understand that sex education and access to birth control do far more to regulate babymaking in this country. Moreover, last I checked, same-sex couples can make babies in a variety of ways, and none of them are by accident. Same-sex couples often foster and adopt the children produced by the many accidental pregnancies from mixed-sex couples who have failed at self-regulating their babymaking capabilities.

  5. Every parent I know with kids from 6 -12 has 98.3 on its car radio all the time!! Even when my daughter isn't in the car I sometimes forget to change stations. Not everybody wants to pay for satellite radio. This will be a huge disappointment to my 9 year old. And to me - there's so many songs on the radio that I don't want her listening to.

ADVERTISEMENT