Indiana senator returning cash from troubled financier

Back to TopCommentsE-mailPrintBookmark and Share

An Indiana state senator returned campaign contributions from a financier now charged with running a Ponzi scheme and criticized fellow Republicans who haven't made similar refunds — a group that includes Gov. Mitch Daniels and U.S. Sen. Richard Lugar, though he didn't call out anyone by name.

Sen. Mike Delph, R-Carmel, wrote a letter to a bankruptcy attorney Monday saying he's returning the $10,000 given to his campaign in 2006 and 2007 by Timothy Durham, a former Indianapolis businessman charged with running a scheme that defrauded investors of more than $200 million.

The investigation into Durham's dealings spurred calls for Daniels and other Republicans to return more than $800,000 in contributions. Daniels received about $195,000 between 2003 and 2009, but says the money has been spent and there is nothing to return. Lugar received about $3,700 from Durham in 2005, and campaign spokesman David Willkie said the contribution is a non-issue and was made in a previous federal campaign cycle.

Delph — who has been mentioned as a possible 2012 challenger to Lugar — wrote in the letter obtained by The Associated Press that he is troubled that some Republicans aren't returning Durham's donations. Delph did not mention Daniels, Lugar or any other Republicans by name.

Delph did not mention Democrats who also received donations from Durham, including former Indianapolis Mayor Bart Peterson and former Rep. Baron Hill.

"I am embarrassed as a citizen and a Republican at the attitude and comments of others who received contributions," Delph wrote. "Like them, monies received in 2006 and 2007 were already spent. However, I recognize my responsibility of maintaining integrity in the system and the need to do that which I believe to be just, fair, and right."

At least one other Republican has already returned money. Former Republican candidate for Marion County sheriff Tim Motsinger returned all financial contributions and loans that his campaign got from Durham, who served as his campaign finance manager. He said the loss of funds made him unable to compete and withdrew from that race.

Delph wrote in the letter Monday that the bankruptcy attorney has assured him that the $10,000 he returned will go toward compensating victims, and he said the issue has bothered him for months.

"Equally troubling however, is the response of several of my colleagues who suggest just because monies have already been spent in campaigns of years past that they are somehow absolved of any responsibility for their participation in the ripoff of others," Delph wrote.

Delph, best known in the Statehouse for pushing legislation aimed at cracking down on illegal immigration, has support from some tea party voters who are frustrated with Lugar for siding with President Barack Obama and Democrats on certain issues. Delph says he's currently focused on the legislative session and won't address his possible candidacy until after that ends. Indiana State Treasurer Richard Mourdock, another tea party favorite, has already announced he plans to challenge Lugar for the Republican nomination in next year's primary.

Durham and two business partners were arrested last week after being indicted on 12 counts, including conspiracy to commit wire and securities fraud, wire fraud and securities fraud. They're accused of defrauding about 5,000 investors in Akron, Ohio-based Fair Finance Co. of more than $200 million.

More coverage of the Durham case can be found here.


  • Educate yourselves
    Jefe, Delph is not against Mexicans, he is against ILLEGAL immigration, and supports the rule of law. Too many have completely mischaracterized the ILLEGAL immigration issue as being anti-hispanic, when it is nothing more than pro-law. Should we all get to pick and choose which laws we want to obey, and which we'd rather ignore?

    If someone walks into your home uninvited, makes himself a sandwich, and plops down on the couch with the remote, are you going to kick him out, or offer him a glass of milk?
  • Doubt
    Mitch never worried about the employees and retirees who were bilked out of their pensions while he was on the IPS Board of Directors. Why would we expect him to feel any empathy for these retirees?
  • Same Holier Than Thou
    Republicans who accept tainted campaign contributions are the ones denying the SEC's budget increase requests?

    Hmmmmm....now I know why!
    • Delph has used the $ interest free
      Hey Mitch and the GOP
      Did you think that one reason there is no money in the pension funds is that they were raided to fund your election campaigns? Not to mention Mitch's putting state money in auto companies that went bankrupt. Now he says these funds are underfunded and the working folks must bear all the pain for this with slashes to essential state programs while the GOP continues to give money to big business like Durham. But then again, the only one who benefits from this is the GOP in contributions--even if they do return them, then these contributions become interest free loans from special interests.
    • Embarrassed???
      I find humor to see Mike Delph claim he's embarrassed as a citizen and a Republican. Those are my exact thoughts on him. He claims he's a christian - I wonder if he thinks his God is against Mexicans too. This republican will always vote against Delph. He only returned the money to look good - more of the christian facade stuff.
    • How bout Mitch
      You would expect Mitch to also return the funds that he accepted from Durham. After all they were, at least in part, stolen from folks who are now deprived of their retirement. How bout it Mitch?

    Post a comment to this story

    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

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
    Subscribe to IBJ