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Fair trustee sues Durham's mother for $831,000

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Fair Finance Co.’s bankruptcy trustee has filed a lawsuit against Tim Durham’s mother, alleging she received more than $831,000 in transfers from the financier in the four years before his financial empire collapsed in late 2009.

According to the lawsuit filed Friday in U.S. Bankruptcy Court for the Northern District of Ohio, Mitza Durham of Seymour received 58 checks or wire transfers from Durham from Feb. 28, 2006, through Nov. 17, 2009.

The lawsuit is among 25 that Fair bankruptcy Trustee Brian Bash filed late last week against individuals and businesses that he alleges collectively owe the bankruptcy estate more than $5.9 million.

Bash says the defendants either defaulted on loans or received transfers from Durham or his businesses. He contends the payments were fraudulent transfers that must be repaid because they were made when Durham and his companies were insolvent.

Other defendants in the barrage of suits include the criminal defense law firm Voyles Zahn Paul Hogan & Merriman, and the bankruptcy law firm Rubin & Levin. The suits seek to recover a $25,000 retainer Voyles Zahn received, and a $40,000 retainer to Rubin & Levin. Both were made in December 2009, weeks after the FBI raided Durham’s businesses.

Another target of the suits is Table Moose Media, which published Indy Men’s Magazine before it folded in 2007. The business, which was owned by Durham and former Eli Lilly and Co. Chairman Randall Tobias, owes $322,250, court papers allege.

Bash for nearly two years has been trying to recover money for Ohio investors who purchased unsecured investment certificates from Fair boasting interest rates as high as 9 percent. The Akron-based company stopped paying and never reopened following the FBI raid. About 5,300 investors are owed more than $200 million.

A grand jury in March indicted Durham and two business associates on charges of wire fraud, securities fraud and conspiracy to commit wire and securities fraud. Prosecutors allege that after buying Fair in 2002, Durham raided its coffers to fund a lavish lifestyle as well as a host of money-losing businesses.

Durham and his co-defendants, Jim Cochran and Rick Snow, have denied wrongdoing.

Mitza Durham told WRTV-TV Channel 6 in 2010 that she believed her son's generous nature led to his financial problems.

"He's one of the most giving, kind people you will ever meet," she said. "That's where he got in trouble, I think. He helped too many people."

Click here for all of IBJ's Durham coverage.

 



 

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  • $900K is a lot of Walmart Greeting, Grandma!
    There must be something left of almost ONE MILLION in checks! Only an idiot would have nothing left of that. Even gamblers and coke heads have enough to order out for Chinese after blowing that kind of roll! If not better hope Walmart in Seymour pays overtime. Strap Mitza into one of those blue vests!
  • erica
    What about the huge diamond engagement ring Tim gave Erica after the raid?
  • easy to find
    http://www.kccllc.net/documents/1050494/1050494120120000000000021.pdf

    go to the www.kccllc.net web sight under court doc. to find all you want to know about this case.
  • Who
    Where does it say they are suing erica lookadoo?
    • Poor Mom
      She actually said,
      Mitza Durham told WRTV-TV Channel 6 in 2010 that she believed her son's generous nature led to his financial problems.
      "He's one of the most giving, kind people you will ever meet," she said. "That's where he got in trouble, I think. He helped too many people."
      She has no idea. He pulled over $20 million from Carpenter Manufacturing in Mitchell, IN before he bankrupt that company with his then father-in-law (another crook) Beurt Servaas. This guy needs to rot in a prison cell.
    • $200k from Daniels
      Why aren't they suing Mitch Daniels for the $200k that he took?
    • Snitch
      Sounds like the girlfriend was working for the feds to get out of previous trouble. Who knew you cant trust nude models in LA? Haha
    • Durham
      I would like to know how much money as actually gone back to the shareholders and not the Trustee and the rest of the lawyers? The last report I read was very little went back to the Fair Finance shareholders but most to the law firms collecting the money.
    • My favorite is ....
      Erica Lookadoo for $33,4000. Check out what they say on wikipidia about her. Say it isn't so.

      http://en.wikipedia.org/wiki/Juliet_Cariaga

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