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Latest Fair suits target Kato Kaelin, playmate, many others

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Fair Finance Co.’s bankruptcy trustee has filed a new barrage of lawsuits against a diverse range of targets, including the rapper Ludacris, former Playboy playmate Jamie Ferrell and former O.J. Simpson confidant Kato Kaelin.

Trustee Brian Bash since early 2010 has been trying to recover funds for investors of Ohio-based Fair, which was led by Indianapolis financier Tim Durham until his financial empire collapsed in late 2009.

The latest suits target Durham friends and business associates, as well as companies and charities, that records list as receiving loans or transfers from the indicted executive or his businesses in recent years. Bash contends the payments were fraudulent transfers that must be repaid because they were made when Durham and his companies were insolvent.

By the end of Friday, Bash had filed 39 lawsuits in just a two-day span. Other notable defendants include former IndyCar team Playa del Racing Inc., Benjamin Harrison Presidential Site Inc. and Henri Najem, who owns the Bella Vita restaurants downtown and on Geist Reservoir. His brother Anthony Najem, who co-founded Fishers-based construction firm Meyer Najem Corp., also is a defendant.

In addition, the trustee sued Michael Durham, Durham’s stepson from his marriage to ex-wife Joan SerVaas. Bash accuses Michael Durham of accepting $49,712 in transfers from Tim Durham.

Michael Durham is the second of Durham's family members to be targeted by Bash. Late last month Bash sued Durham's mother, Mitza Durham of Seymour, accusing her of receiving 58 checks or wire transfers totaling $831,000 from Durham from February 2006 through November 2009.

Another defendant in the new suits is Ricky D. Snow, former chief financial officer of Fair Finance, who is accused of making improper transfers that depleted Fair's assets.

Durham and two business partners, James Cochran and Snow, were arrested in March after being indicted on 12 felony counts, including conspiracy to commit wire and securities fraud. They deny wrongdoing.

The new suits are part of Bash's contininuing quest to recover some of the more than $200 million that Fair owes more than 5,000 Ohio investors who purchased unsecured notes from the company.

Bash accuses the Najems of accepting nearly $2 million in transfers from Durham. Henri Najem is a former partner with Durham in several restaurants.

Former playmate Ferrell is accused of accepting $174,415 from Durham. The Benjamin Harrison Presidential Site Inc., which oversees the former president's home, received $50,000, court papers allege. The suits say Kaelin received $23,700 and that the Ludacris Foundation Inc., a not-for-profit focused on improving the lives of disadvantaged young people, received $30,000.

Bash alleges Durham looted Fair after buying it in 2002, stripping the business of the financial wherewithal to repay the investors.

For all of IBJ's Durham coverage, click here.

 

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  • Follow the money but collect the taxes too!
    T. Durham and his family have spent tons of money. If he gave huge amounts of money to mama, sisters, sons, Xes, whores, or whoever they have to pay taxes on these gifts. It doesn't matter if the money was given for medical expenses or to pay for an expensive vacation home. It is all income to the fed. We pay taxes. Durham's family owes taxes! Not just on what they settle on paying back but what they were given and spent. It pisses me off to know these people will get off from paying the Fair investors less than they were given or took. I think they should spend time in jail for every penny they don't return. Not just Tim Tim!
  • Great News
    The Akron Beacon Journal said that they had filed lawsuits for over $1 Billion dollars. Good follow the money!

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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