IBJNews

Indictment: Durham looted Fair Finance

IBJ Staff
December 24, 2011
Back to TopCommentsE-mailPrintBookmark and Share
Year In Review
More
Stories
State's economy stuck
                              in neutral Indictment: Durham looted Fair Finance Ballard cruises to second term City backs string of high-profile projects Manning's injury sends Colts into tailspin Downtown mall stung by loss of Nordstrom Right-to-work battle derails legislative session General Assembly overhauls K-12 education Real estate meltdown leaves developers reeling Spate of Indiana firms lines up for IPOs Rolls-Royce relocated 2,500 jobs to downtown Openings launch new era for tourism biz Patent expirations up pressure on Lilly Las Vegas crash saps IndyCar momentum


Newsmakers
Simon
                              takes on Amazon.com Melangton Daniels White in crosshairs as reformers target IPS

Indianapolis financier Tim Durham was indicted on wire and securities fraud charges in March—the culmination of a federal probe that began in 2009.

Prosecutors say that after buying Akron, Ohio-based Fair Finance Co. in 2001, Durham and fellow Indianapolis businessman Jim Cochran raided its coffers to fund a lavish lifestyle as well as a host of money-losing businesses they controlled.

One example from the felony indictment: In early 2008, when Fair’s finances were dire, Durham pulled out $150,000 for a gambling spree.

Authorities say Durham and Cochran pulled money out with such abandon that they left Fair without the means to repay the Ohio investors who had purchased unsecured investment certificates. More than 5,200 investors are owed more than $230 million.

Also indicted was Rick Snow, who was Fair’s chief financial officer. He is accused of participating in the fraud, but unlike Durham and Cochran he isn’t accused of taking out millions of dollars in insider loans he lacked the means to repay.

Durham, Cochran and Snow deny wrongdoing.

Fair shut down following an FBI raid in November 2009. The raid occurred about a month after IBJ published a story highlighting the massive insider loans and questioning whether the company could repay investors.

Durham is on house arrest while he awaits his trial, which is scheduled for June 2012.

Fair Finance’s bankruptcy trustee, Brian Bash, for nearly two years has been trying to scrounge up assets to reduce investors’ losses. As part of that effort, he has reached settlements with seven Indiana politicians or campaign committees that received donations from Durham, who had been one of the biggest supporters of GOP candidates in the state.

In the largest deal to date, former Marion County Prosecutor Carl Brizzi and his campaign committee in November agreed to return nearly $200,000.

The trustee contends the political donations were fraudulent transfers because they were made when Durham and his companies were insolvent.•

ADVERTISEMENT

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. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

ADVERTISEMENT