IBJNews

Filing shows Durham's personal finances in shambles

Back to TopCommentsE-mailPrintBookmark and Share

Indicted financier Tim Durham continues to have ownership stakes in more than a half-dozen businesses, and he has friends and associates who owe him millions of dollars. The problem is few of his business holdings are worth much. And even if everyone who owed Durham money paid him—which seems unlikely—his assets still would be a fraction of his debts.

That’s the picture that emerges from the 20-page financial statement Durham’s attorney filed in federal court late Friday. The filing doesn’t attempt to place a value on his assets but estimates he owes creditors $77 million.

Durham owes the largest amount, $29 million, to Obsidian Enterprises Inc., his now-defunct Indianapolis-based leveraged buyout firm. The money reflects his personal guarantee on loans Obsidian took out from Akron, Ohio-based Fair Finance Co.—the business prosecutors allege he ran as a Ponzi scheme.

The filing lists his largest single asset as his 100-percent ownership interest in Custom Cryogenic Grinding, an Indianapolis-based recycler of rubber and plastic, whose fair market value is listed as $2.9 million.

Other assets used to be worth more but have plunged in value. For example, Durham owns 11.8 million shares of Los Angeles-based National Lampoon Inc., where he serves as CEO. However, as of April, those shares were worth just 2 cents apiece, or $236,000, according to the filing.

Attorneys overseeing Fair Finance Co.'s bankruptcy liquidation had believed for months that Durham lacked the personal wealth to put a dent in the money owed to 5,200 Ohio residents who purchased more than $200 million in unsecured notes from Fair. The notes slid into default after the company shut down in November 2009 following an FBI raid.

The filing, however, makes public for the first time the utterly bleak state of Durham’s finances. As recently as 2008, he boasted to the business news channel CNBC that he had a net worth of $75 million—a figure investigators say belied reality.

Durham already has turned over to Fair's bankruptcy trustee many of his easiest-to-liquidate assets, including his collection of artwork and exotic cars.

A 23-page grand jury indictment returned this spring alleges Durham and business partner James F. Cochran worked with former Fair Finance Chief Financial Officer Rick D. Snow to devise and execute a scheme to defraud Fair’s investors. Authorities say that after Durham bought Fair in 2002, he doled out related-party loans with abandon, stripping the company of its ability to repay investors. He made many of the loans to himself, to his businesses and to associates who later defaulted.

Durham, Cochran and Snow have denied wrongdoing.

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


 

ADVERTISEMENT

  • r u kidding
    Must be nice to tell the court you are broke, drive around in a BMW, have your groceries delivered and stay in diamond point and now downtown in a condo. sounds like being broke. i would like to be broke as well. wow are you kidding.
  • What parents?
    his dad, Chuck, was smart and took off! He left his dental practice and family. He has been MIA since this went down. I would say he's the smartest one of the bunch
  • Where is money coming from?
    Has anybody else wonder how is Tim surviving? It takes money to hang out in a condo in downtown Indy, it takes money to purchase new computer equipment and I am sure that if the prosecutors look into it, they will find money hidden outside of the country.
  • It happens to the good ones too
    Fastest-Growing Indianapolis-Area Public Companies
    Publication: Indianapolis Business Journal
    Publication Date: 16-SEP-02

    Obsidian debuts in top spot on fastest-growing list

    The recession's impact was readily apparent when IBJ researchers compiled this year's list of fastest-growing Indianapolis-area public companies. Only 21 companies met criteria to qualify for the list, which usually features 25 companies.
  • "Loans?"
    Would the reporters respectfully please stop calling Durham's looting "loans." He did not borrow, he stole, and when he got caught flew back from LA, holed up at Chase Tower and wrote all those loan documents which is why the dates don't match. We hope the BK trustee gets him for bankruptcy fraud TOO and that all convictions run consecutively and not conservatively. We hope Washington comes in to assist in the trial of these criminals so they can never again in their lives do this to anyone. We will have no Christmas this year or next year because all our discretionary money was stolen by Tim so he could pretend to be something he never was.

    What he is is a thief. Lock him up here in the Akron county jail with no bail and let's see what comes out of his mouth then.
  • Questiom
    Does anyone know if Scott McKain has been questioned about the chapter on Obsidian he put in his book "all business is show business" where he allegedly claims Durham was making money hand over fist and their investors were sophisticated and accredited? Same question with the reason his house went into foreclosure a week after the FBI raided Durham, does anyone know anything about that. Thanks.
  • PARENT'S MUST BE PROUD
    This guy is too much.He surely made his parent's proud of him I am sure????I can't wait to see these guy's in akron.Rumor has it what come's to akron may not leave akron.We need some more horse's ass's in the amish field's to plow the field's.

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. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

  2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

  3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

  4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

  5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

ADVERTISEMENT