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Latest Fair Finance suits target Durham associates

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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.

 


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  • 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.

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  1. City-County Councilor Angela Mansfield and Bob Lutz have a case of wishful thinking.

    They obviously don't really care about the cost.

    They should.

    Extending Federal Benefits to Same-Sex Couples Will Cost $898M, CBO Says

    http://www.foxnews.com/politics/2009/12/22/extending-federal-benefits-sex-couples-cost-m-cbo-says/

  2. Brett, be careful what you lie about, the truth always comes out.

    "IMS's George Honored: Tony George, Indianapolis Motor Speedway president and chief executive officer, received the inaugural Pioneering and Innovation Award at the Autosport Awards Dec. 5 in London for his leadership in the development of the Steel and Foam Energy Reduction (SAFER) Barrier. George received the award at the annual gala at the Grosvenor House on behalf of the creators of the SAFER Barrier from Prince Salman Bin Hamad Al Khalifa, the leader of the Bahrain International Grand Prix circuit. This is the fourth major award that has been presented to honor George and the SAFER Barrier development team. The SAFER Barrier also received the Louis Schwitzer Award, SEMA Motorsports Engineering Award and GM Racing Pioneer Award in 2002. The SAFER Barrier was installed in all four turns of the Indianapolis Motor Speedway a pioneer in safety for drivers, cars and tracks -- in time for the 86th Indianapolis 500 in 2002. It since has been installed at more than a dozen other tracks, and the latest iteration will be installed at the Speedway in the spring.(IMS PR), see more on my Indy Track News page.(12-7-2004)"

    As far as the cart safety team, I cannot find anything on its date of creation. The Delphi Safety team was created in 1996. For some reason there is not much info out there on defunct racing series.

  3. Great article Anthony. Glad IMS is finally being run like a business and not a personal check book to finance the "Vision".

    Things are looking up but 15 years of scorched earth won't be fixed overnight. Unfortunately the TV ratings are still poor and that won't change anytime soon with the brilliant 10 year contract signed under the former regime.

  4. Brett not sure why you wonder what he said in his quote. "''I would like to jump in a time machine, go back to 1995, and tell the owners and Tony George not to split,'' Franchitti said. ''As soon as my time machine is done, I know where I'm going.''"

    Pretty clear, he would love to go back and tell TG and the team owners not to split.

    I am not sure there is anyone who wanted the split, and I don't think there is anyone who would not like to go back and prevent the split. But, as has been discussed ad nauseum, without the split carts management by team owners would have run all of ow racing into bankruptcy. If cart had such a wonderful product, then losing IMS would not have forced it into bankruptcy. If NASCAR lost Daytona or Charlotte, it would not fail like cart did.

    Truth,

    So you predicted that cart would go into bankruptcy and cease to exist while Indycar would continue on? I missed that prediction.

  5. I want to live in a city that has a garage structure to be proud of for it's innovating design!

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