IBJNews

Latest Fair Finance suits target Durham associates

Back to TopCommentsE-mailPrintBookmark and Share

Fair Finance Co.’s bankruptcy trustee has unleashed a new wave of lawsuits against financier Tim Durham’s friends and business associates—this time going after firms affiliated with Indianapolis restaurateur Henri Najem, the rapper Ludracis, former Indianapolis Colts quarterback Blair Kiel and others.

Trustee Brian Bash filed 10 lawsuits in U.S. Bankruptcy Court for the Northern District of Ohio on Friday. All seek repayment of loans or transfers Bash alleges Durham companies made in recent years when the indicted businessman’s financial empire was insolvent.

The lawsuits, which collectively seek more than $1.3 million, are among dozens Bash plans to file in the coming weeks, said David Proano, a Cleveland attorney representing the trustee.

Targets of Friday’s suits include Obsidian Conference and Catering Center, a catering business Najem and Durham owned that borrowed $30,000. Durham and Najem each personally guaranteed the loan, which is in default, but haven’t repaid it, court papers allege.

Najem, a former partner with Durham in several restaurant ventures, is best known for his Bella Vita restaurant at Geist Reservoir. Najem did not return a call seeking comment Tuesday morning.

Another suit filed Friday was against My Ghetto Holdings LLC, parent of myghetto.com, a social media website launched by Ludacris, a Durham friend. The site no longer operates, and My Ghetto Holdings has failed to repay its $170,000 loan, according to Friday’s suit.

The trustee also is seeking to recover $72,200 in principal and another $20,383 in interest from Blair Kiel Partners Inc., a firm launched by the former Notre Dame star and NFL player. Friday’s lawsuit says the company failed to repay a 2005 loan when it matured two years later. Efforts to reach Kiel for comment were unsuccessful.

Bash for nearly two years has been trying to recover money for Ohio investors who purchased unsecured investment certificates from Fair boasting interest rates as high as 9 percent. The Akron-based company stopped paying after it shut down in November 2009 following an FBI raid. About 5,300 investors are owed more than $200 million.

A grand jury in March indicted Durham and two business associates on charges of wire fraud, securities fraud and conspiracy to commit wire and securities fraud. Prosecutors allege that after buying Fair in 2002, Durham raided its coffers to fund a lavish lifestyle as well as a host of money-losing businesses.

Durham and his co-defendants, Jim Cochran and Rick Snow, have denied wrongdoing.

Among the targets of Friday’s suits were three firms bearing Durham’s name—Durham Whitesell & Associates, Durham Capital Corp. and Guyer Durham LLC. Four others were registered as having been based on the 48th floor of Chase Tower, where Durham had his offices until late 2009.

____

Click here for all of IBJ's Durham coverage.

 

ADVERTISEMENT

  • Dr. Guyer was involved
    Is Guyer Durham LLC related to Guyer Institute of Molecular Medicine? Located in Nora area, its owned by Dr. Leonard Guyer I believe
  • Sad Part
    The sad part is that every penny will go to the attorney's and not the one's that actually were swindled.

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. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

ADVERTISEMENT