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NEWSMAKER: High-flying exec Durham ensnared in probe

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Year In Review

Few people in Indianapolis embraced opulence like Tim Durham, the financier who partied with beautiful women aboard his yacht, built a 30,000-square-foot mansion, and amassed more than 70 cars.

Tim Durham

But now Durham, the son of a Seymour dentist, is getting attention for all the wrong reasons. The U.S. Attorney’s Office alleged in court papers filed Nov. 24 that one of his businesses, Ohio-based Fair Finance Co., operated as a Ponzi scheme.

FBI agents that same day seized records from Durham’s Indianapolis office and from Fair’s Akron headquarters. Fair hasn’t reopened since the raids, fueling anxiety among Ohio investors who purchased more than $200 million of the company’s short-term investment certificates.

The raids occurred a month after IBJ published an investigative story raising questions about whether Fair had the financial wherewithal to repay investors.

The article reported that since Durham bought the consumer-loan business in 2002, he had used it almost like a personal bank to fund a range of businesses, some of them unsuccessful. Loans to Durham and related parties now top $168 million, filings with Ohio securities regulators show.

The negative publicity also has been damaging to Republican heavyweights who received big campaign contributions from Durham—especially Marion County Prosecutor Carl Brizzi, who calls Durham a friend.

Brizzi, 41, recently acknowledged that he agreed over the summer to serve as a Fair Finance board member but decided to step down after Durham told him IBJ was going to press with the story questioning the company’s business practices.

Financial-disclosure statements also list Brizzi as owning stock in two firms closely linked to Durham—Los Angeles-based Red Rock Pictures Holdings and Dallas-based CLST Holdings Inc.

CLST, a former cell-phone distributor where Durham is chairman, also is under scrutiny by federal investigators. CLST in early December disclosed that the Securities and Exchange Commission subpoenaed a mountain of documents, including those related to a controversial transaction between the company and Fair Finance.

An attorney for Durham, 47, said his client does not believe he has done anything wrong. Durham has not been charged with any crime, but is facing a civil class-action lawsuit filed by investors seeking to rescind their purchases of investment certificates.•

 

 

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  • What did you turn Tim in for?
    Please give the details of what you turned Tim in for
  • Am I responsible for the leak?
    I can't believe Carl removed me from his Facebook friends list after all I did to help him and Tim pay that girl back for turning Tim in back a few years ago. Is this the thanks I get? To be constantly evicted? To not share in this wealth? I deserve my share! It's not my fault IBJ ran those articles! All I did was make that girl miserable and try to ruin her life! I know I opened my mouth in the firsd place but it was her fault for not keeping quiet. And it was fun to call her bosses and her ex husband and her boyfriend and anyone else who would take my calls. Whew, it was a lot of work, tho. And, I don't like to work hard except when I am stealing money from people like Bob and Tami. Even I concede it was creepy when I posted her Dads name and birthdate on Yahoo. But we all know I didn't know how to do this by myself and had help. Damn that reporter! How did he get involved. Now I don't get to stalk people anymore and I am personna non-grata because I set this ball into motion. Whoda thunk huh? What happens to me now! What about me! Me!

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    1. Those of you yelling to deport them all should at least understand that the law allows minors (if not from a bordering country) to argue for asylum. If you don't like the law, you can petition Congress to change it. But you can't blindly scream that they all need to be deported now, unless you want your government to just decide which laws to follow and which to ignore.

    2. 52,000 children in a country with a population of nearly 300 million is decimal dust or a nano-amount of people that can be easily absorbed. In addition, the flow of children from central American countries is decreasing. BL - the country can easily absorb these children while at the same time trying to discourage more children from coming. There is tension between economic concerns and the values of Judeo-Christian believers. But, I cannot see how the economic argument can stand up against the values of the believers, which most people in this country espouse (but perhaps don't practice). The Governor, who is an alleged religious man and a family man, seems to favor the economic argument; I do not see how his position is tenable under the circumstances. Yes, this is a complicated situation made worse by politics but....these are helpless children without parents and many want to simply "ship" them back to who knows where. Where are our Hoosier hearts? I thought the term Hoosier was synonymous with hospitable.

    3. Illegal aliens. Not undocumented workers (too young anyway). I note that this article never uses the word illegal and calls them immigrants. Being married to a naturalized citizen, these people are criminals and need to be deported as soon as humanly possible. The border needs to be closed NOW.

    4. Send them back NOW.

    5. deport now

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