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Judge approves legal fees in Fair Finance case

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A U.S. bankruptcy judge in Ohio has approved payment of $1.7 million in legal fees and expenses to lawyers working on the massive fraud case involving indicted Indianapolis financier Tim Durham.

Chief Judge Marilyn Shea-Stonum signed off on the payout Tuesday morning, according to the Akron Beacon Journal.

The amount paid to lawyers so far nearly accounts for the entire $1.8 million that Fair Finance trustee Brian Bash has recovered so far.  Bash has said he expects to recover $78.5 million more of the estimated $230 million that investors lost to Akron, Ohio-based Fair Finance Co.’s alleged Ponzi scheme.

Bash’s Cleveland law firm, Baker Hostetler, accounts for the largest part of the $1.7 million in professional fees, which were submitted for approval last month.

Durham bought Fair Finance in 2002 and used it to orchestrate the largest Ponzi scheme in state history, Bash alleges. Durham and business partners James Cochran and Rick Snow were arrested March 16 after being indicted on 12 felony counts, including conspiracy to commit wire and securities fraud.

The three have pleaded not guilty.
 

 

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  • All $$ Collected
    What do you bet that the lawyers will get 99.9% of all the money collected over the course of this long process. What a JOKE! Now who are the criminals?
  • where?
    article seems incomplete. where is he going to get 78 million if he only has 2 after a years work?
  • Surprised?
    And the shareholders get screwed again. As long as the lawyers can make their Sea-Ray payments, who cares?
  • Why not wait?
    Seems like they would wait until the $78.5M is recovered before paying these legal fees.
  • $75m?
    Lampoon is insolvent and the royalties are where? Not being accounted for in the whooping $2m gross revenue last year. NO value there or the only operating place--united trailer

    Trustee is almost as bad as Timmy
  • gosh
    That was predictable, I am surprised they left 100k on the table for the poor Amish folks.

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    1. As a St. Vincent employee of over 20 years, I am saddened and disheartened by this announcement. Unfortunately, as the healthcare "industry" continues on this political and corporate path, all that St. Vincent Hospital has stood for spiritually for its employees and this community is being sucked dry. I know it truly has no choice. It is not just Obamacare or just competition or just any single thing. This trend started long before I was even born when the government became involved in healthcare and it became an "industry." I grieve for those who will lose their jobs, one of whom may be me, but I also grieve for this hospital which I have served for over 20 years. May God give us and it the grace to withstand the future of healthcare.

    2. Why do people constantly harp on this issue and act ignorant about what a city population measures? A city's population is the city's population. There is no argument or debate about it. If you want to measure the density of a city--measure it. If you want to measure the size of a metropolitan area, then measure the metropolitan population. City boundaries cover different sized areas--and they always have (though the disparity has probably increased since about 1900 or so when more cities began annexing their surrounding communities). For example, San Francisco only covers 49 square miles while Houston cover nearly 600 square miles. No one argues about the population rankings of either city even though they clearly cover extremely different sized areas. Indianapolis is the 13 largest city by population in the U.S. That is a fact. While the population of a metropolitan area may give you a better sense of how large a community is, as noted, even metro areas can vary widely in the size of geographic area they cover--so that is not a perfect comparison either.

    3. If Whole Foods went in, I doubt the Nora one would stay open, and with all those customers coming to Broad Ripple traffic would be horrible, and forget about a run to the grocery on weekend nights. I think concern over the number of apartments is misplaced, but the 400 space parking garage has me concerned - someone needs to ask the developer just how much traffic they think this development is going to generate. I am not against more neighborhood residents, but heavy commercial traffic going in and out at that location sounds like a mess.

    4. I thought everyone was innocent until guilt was proven. Seems people have already convicted Reggie in the press. My nephew was a good kid and is a good man, more to this story im sure

    5. Going by the Marion County population only is of little use. 13th largest? No Way! To judge the real size of a metro area, the easy way is to look at the Arbitron rating list. Indianapolis hovers around 40th largest in the nation--sometimes more, sometimes less. Advertisers want to know exactly how large the population is before they buy radio advertising. Arbitron figured it out long ago. Indianapolis is estimated at 1,427,500. The real #13 is Seattle-Tacoma with a metro population of 3,470,400. So, the population of just Marion County is completely irrelevant to anything useful as far as metro area planning.

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