IBJNews

Judge lays into Durham, sentences him to 50 years

 IBJ Staff
December 28, 2012
Back to TopCommentsE-mailPrintBookmark and Share
Year In Review
More
Stories
City successfully stages Super Bowl, shoots for another Indiana adopts right to work WellPoint investors force Braly ouster Judge lays into Durham, sentences him to 50 years ISO reaches new contract, launches fundraising spree Developers unleash blitz of apartment projects Hoosier voters tap Pence to continue Daniels' legacy Daniels wins presidency—at Purdue City projects move ahead, following clash over TIF Indy airport sends CEO Clark packing In election shocker, voters bounce schools chief Bennett Bernard bounced as IndyCar Series CEO Digital marketer ExactTarget splashed onto NYSE


Newsmakers
2012
                              NEWSMAKER: School librarian Ritz won with grass-roots campaign 2012
                              NEWSMAKER: Crime stance returns Hogsett to political spotlight 2012 NEWSMAKER:
                              Council Dem Mahern plays role of antagonist 2012 NEWSMAKER: CEO keeps Simon stock surging 2012 NEWSMAKER:
                              Miles adds to diverse business, sports career Other 2012 news
                              of note

Tim Durham, the Indianapolis businessman who used to dream of becoming the world’s richest man, ended 2012 broke and facing a 50-year prison sentence for orchestrating a $250 million Ponzi scheme.

Federal Judge Jane Magnus-Stinson handed down the sentence in November after using three words to describe both Durham, 50, and the crimes he committed: “Deceit. Greed. Arrogance.”

Durham Durham

A federal jury in June found Durham guilty on all 12 counts stemming from the collapse of Akron, Ohio-based Fair Finance Co. Prosecutors charged that Durham looted the company to fund a lavish lifestyle and support other failing businesses he owned.

Fair co-owner Jim Cochran, who was convicted on eight of 12 counts, received a 25-year sentence, and Rick Snow, the chief financial officer, received 10 years.

Money for the scheme came from 5,000 Ohio investors who purchased unsecured notes from Fair boasting interest rates as high as 9 percent. Fair’s bankruptcy trustee has been trying to recover money for the investors for nearly three years but so far has been unable to make a distribution.

U.S. Attorney Joe Hogsett called Durham’s sentence the longest ever in a white-collar crime case in Indiana.

Durham in December began the process of appealing the conviction. He likely will be represented by a court-appointed or pro bono attorney because he lacks the means to pay for his own counsel, court papers say.

His former attorney, John Tompkins, said Durham likely will argue that an FBI wiretap of Durham’s cell phone was illegal. Tompkins sought to have evidence from those wiretaps thrown out, but the judge refused.

Prosecutors said the wiretaps showed that Durham and his business partners discussed how to hide from investors that Fair Finance was running out of money in 2009.

In court documents, Durham said his only income this year is $6,000 he received as a director of Dallas-based CLST Holdings.

The documents say his mansion in Fortville, which is in foreclosure, has a mortgage of $5 million but a market value of just $3 million.•
 

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. It is nice and all that the developer grew up here and lives here, but do you think a company that builds and rehabs cottage-style homes has the chops to develop $150 Million of office, retail, and residential? I'm guessing they will quickly be over their skis and begging the city for even more help... This project should occur organically and be developed by those that can handle the size and scope of something like this as several other posters have mentioned.

  2. It amazes me how people with apparently zero knowledge of free markets or capitalism feel the need to read and post on a business journal website. Perhaps the Daily Worker would suit your interests better. It's definitely more sympathetic to your pro government theft views. It's too bad the Star is so awful as I'm sure you would find a much better home there.

  3. In other cities, expensive new construction projects are announced by real estate developers. In Carmel, they are announced by the local mayor. I am so, so glad I don't live in Carmel's taxbase--did you see that Carmel, a small Midwest suburb, has $500 million in debt?? That's unreal! The mayor thinks he's playing with Lego sets and Monopoly money here! Let these projects develop organically without government/taxpayer backing! Also, from a design standpoint, the whole town of Carmel looks comical. Grand, French-style buildings and promenades, sitting next to tire yards. Who do you guys think you are? Just my POV as a recent transplant to Indy.

  4. GeorgeP, you mention "necessities". Where in the announcement did it say anything about basic essentials like groceries? None of the plans and "vision" have basic essentials listed and nothing has been built. Traffic WILL be a nightmare. There is no east/west road capacity. GeorgeP, you also post on www.carmelchatter.com and your posts have repeatedly been proven wrong. You seem to have a fair amount of inside knowledge. Do you work on the third floor of Carmel City Hal?

  5. I don't know about the commuter buses...but it's a huge joke to see these IndyGo buses with just one or two passengers. Absolutely a disgusting waste of TAXPAYER money. Get some cojones and stop funding them. These (all of them) council members work for you. FIRE THEM!

ADVERTISEMENT