Monday, May 17, 2010

$200 Million Up in Smoke

The failure of Acting U.S. Attorney of Southern District of Indiana Timothy M. Morrison to hold and seize the assets of suspected and alleged financial scheme operator Timothy S. Durham last November will go down as the dumbest "help my friend" move by the Rove Republican Racket ever.

Durham, once one of the top donors to the Republican Party and Governor of Indiana, built a fleet of luxury cars and million-dollar mansions on the back of Ohio retirees who gave millions to Durham and his Indianapolis cronies through his investment firm Fair Finance, based near Akron, Ohio.

Tragically, now auditors have confirmed: $200 million has gone up in smoke in personal loans to Durham, James Cochran, who was arrested for allegedly beating up his wife, and others involved in this scheme.

The Akron Beacon Journal reports last Friday:

The investigation into Fair Finance Co. has found assets of $20.9 million and liabilities of more than $220.3 million, according to bankruptcy court documents filed Thursday. More than 5,300 people and organizations that bought uninsured investment certificates from the Akron loan company are owed nearly $218.5 million of the $220.3 million.  While the documents list assets of $20.9 million, other assets are probably out there and listed as ''unknown,'' Fair Finance's court-appointed trustee, Brian Bash, said Thursday. The largest identified asset -valued at more than $17.8 million- was a fully owned subsidiary of Fair Finance called Fair Facility I LLC. (Fair Facility was created to purchase receivables from Fair Finance.)  The ''unknown'' assets include more than $200 million in so-called related party loans Fair Finance made to businesses owned or controlled by Fair Finance's owners, Timothy Durham and James Cochran, to the two individuals and others as well, the documents show.

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