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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. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

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    5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

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