Saturday, November 28, 2009

U.S. Attorney Files Forfeiture Action Against Tim Durham's Properties and Bank Accounts Alleging Wire Fraud, Money Laundering and Tax Evasion

I'm not sure how the media missed this. I saw over at Indy Democrat that Jon Easter had indicated that someone had emailed him that the Fortville address that was Tim Durham's house had been listed in a foreclosure action filed on November 24, 2009. I looked up on the Pacer system used by the courts and found the lawsuit.

The lawsuit, filed by acting U.S. Attorney Timothy M. Morrison, alleges wire fraud, money laundering and income tax evasion. It contains the following facts:

6. Timothy S. Durham, and his companies and associates, have been involving in a scheme to defraud numerous persons of money by convincing those persons to buy "investment certificates" ... from Fair Finance, Co, an Ohio company, upon the representations that the money given to buy the investment certificates will be invested in low-risk, high yield, short term consumer debts, and the investors will receive high regular interest payments on their investments. In fact, that money was not invested in the types of investments represented to the investors. Instead, the money provided by victims of the scheme was used to make interest and redemption payments to earlier victims of the scheme, thereby lulling the earlier victims into believing that their money was being responsibly, and enticing new investors into the scheme in order to fund payments to the earlier investors.

11. Durham kept for his personal use a portion of the funds that were entrusted to him by the purchasers of the investment certificates contrary to the representations made to them.

12. The defendant property constitutes, or was purchased with, or was commingled with, the proceeds of the fraud scheme by Timothy S. Durham.

13. During the course of the fraud scheme perpetrated by Timothy Durham and his associates, Durham operated at least 2 holding companies and 19 operating subsidiaries, with approximately 77 individual bank accounts for these entities.
The lawsuit asks for the seizure of four properties owned by Durham, his main residence in Fortville, a home in Los Angeles and two properties in Henry County. The lawsuit also asks for the forfeiture of 18 bank accounts in the name of Durham personally and his businesses Fair Finance, Fair Holding, DC Investments, Fair Financial Services, Obsidian Enterprises, Obsidian Leasing, Fair Facility. The lawsuit also asks for the seizure of an automobile, a 2008 Bugatti Veyron, owned by Durham.


Downtown Indy said...

Maybe Carl Brizzi can return the favor now and give Tim a place to sleep while all this shakes out?

Unknown said...

Well, we can all guess that both Carl and Timmy are reading this and Gary's blogs, and the IBJ and Indy Star...I'd like to personally thank Greg Andrews for not succumbing to Durham's bullying (Indpls Monthly quoted Durham bragging something to the effect of he would sue IBJ if they said anything bad about him...), Gary Welch and Paul Ogden for blogging about the lack of conscience among Indianapolis' self-proclaimed elite, and the Tim Morrison for finally growing a pair of balls and filing the motion to seize assets.

I know said...

You know who has 12 corporations with their State Contract and what State they are in!

That does not pass the smell test either!

I know said...

What about the campaign funds to all the political figures in Indiana from the Governor on down?

Will that be seized too?

I bet it is over a half a million total to the Prosecutor and State elected officials when it is added up coming from 19 different Durham companies!

Jon E. Easter said...

Thanks for the shout out Paul!

Paul K. Ogden said...

You're welcome, Jon. I can't believe the media missed this story.

M Theory said...

I can't wait for the auction! Great reporting Paul. You are a first class blogger.

M Theory said...

Correct me if I am wrong here, but aren't all monies from ponzi schemes that can be found to be recovered and then given back to the investors?

So that would mean all those shady political contributions have to go back to the investors, right?

Didn't Fair Finance get a lot of investment from the Amish?

I know said...

$809,000.00 to Indiana politicians and campaigns and counting. Who will blink first?

Downtown Indy said...

A 2007 NT Times story indicates Durham was merely leasing the Bugatti:

Why buy when you can lease?

I know said...

November 25, 2009
Politicians Distance Themselves From Indy Businessman Tim Durham Donated More Than $800K To Politicians
...A search of campaign finance records showed that [he] contributed at least $809,653 to candidates and political committees, virtually all of them Republicans, at the local, state and federal levels in the last few years... Gov. Mitch Daniels... received the most Durham money at $280,000. Marion County Prosecutor Carl Brizzi, who acknowledged Durham as a friend, got $178,949 of
the financier's cash and services, and had been asked to serve on the board of Fair Financial. ...the state GOP received at least $150,000 from Durham, and the Marion County party and its finance arm got $66,200. ...House [GOP] leader Brian Bosma and his caucus's campaign committee received $54,580. ...[&] donated $5,600 to Democratic Congressman Baron Hill.

Paul K. Ogden said...


I'm not sure it's that easy. When you start talking about recovering money paid to innocent third parties who had no knowledge of the alleged scheme then it becomes difficult from a legal standpoint. I know it's hard to imagine politicians as innocent third parties, especially those who had reason about the alleged scheme. But there are other recepients of Durham's money out there who are completely innocent. You can't just go in and start taking that money away to pay the people who were defrauded.

It's like the situation where my client lost two homes when someone forged his name on a deed then sold the houses to someone else. The purchaser of my client's property is innocent as is my client. The law makes it difficult to reccover property from an innocent thrid party even though the origin was illegality.

Unknown said...

Downtown Indy:

Thanks for the link on the Bugatti. It should be mentioned, however, that Durham is a liar. He lied in the article about "deferring taxes." He got himself a Motor Vehicle license under the name Diamond Auto Sales and, in fact, has not paid a cent of tax on ANY of his millions of dollars in cars.

The dealership "address" is 117 N. East Street, a storage facility for Durham. There is a sign on the door to call Diamond Auto Sales, but of course no one ever answers.

Crows always come home to roost. Durham should have simply shut his mouth after his windfall on Brightpoint, which he got away with, and been happy being richer than the rest of us. But, there is something inside of him that must misfire in his brain, as he just got greedier and greedier, to the point of no-return.

I feel very sorry for his namesake and son. Joan and her Dad are going to need to come up with some serious tuition money for his USC education, because it's over $50g a year to go there. I wonder how many of the Mennonite and Amish folks Durham fleeced would have liked to have sent their children to USC.

By the way notice how Brizzi has still not revealed where he got the money for Harry and Izzi's and the second house he bought?

M Theory said...

Durham, like the politicians, are sociopaths.

Aren't sure what a sociopath is?

Go to this link to start learning about the traits of the sociopath. The halls of government are crawling with them.

Chris said...

The The U.S. attorney did a good job in hunting fraudulent actions. I hope they continue to perform well and convict more tax evaders.

Tax Relief Attorney

skyshrouder said...

I think the perfect term to use for the technique is "kiting". It is an aged old technique to make sure that more investors come in by using funds from one account and diverting it to another.
class action attorney

Anonymous said...

Tax evader issues are not only in the US but it happening around the world. I hope many lawyers would do their job to convict those people, organizations, companies and many more.

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Suzy Thompson said...

I hope the government would take these as a big problems in the society. Tax evaders haven't a chance to become free without facing their responsibilities.

Bankruptcy Attorney Las Vegas

Stacey Bourne said...

I don't understand why there are lots of people, organization, companies etc are still facing taxes problem if the government has the guidelines on how to process it? I guess people need to be aware on their responsibilities to avoid this matter.

Wites & Kapetan

Ryan Donovan said...

I'm glad that this man's negative actions have been discovered and he no longer would be able to continue it. He definitely has gained a lot of this, so I hope that he pays the consequences for his actions.

tax agent

Unknown said...

In an effort to find more Americans to disclose the revenue they have stashed beyond the U.S, the IRS has initiated a program that will grant these individuals to divulge the money and pay the taxes they are obligated to pay on it without penalty fees. It is far better to take advantage of the Voluntary Disclosure procedure prior to IRS discovers you have revenue stashed.

Unknown said...

Hi Hannah, the IRS delivers tens of thousands of correspondence to taxpayers annually anytime money owed is attached. Taxpayers should be completely aware of precisely what each notice means so that they do not inadvertently make the problem more painful by not understanding how you can get in touch with the IRS. By not knowing precisely what notice demands immediate response, Internal Revenue Service collections may begin as a result of failure to follow the appropriate course of action.