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The U.S. Attorney for Southern Indiana has filed a civil lawsuit against Indianapolis millionaire Tim Durham allegeding the financier engaged in, "wire fraud offenses," against investors with his Fair Finance Company of Akron, Ohio.
Durham's Indianapolis and Ohio offices were raided by FBI agents Tuesday. Durham's attorney said federal investigators took 100,000 documents and records.
The civil lawsuit claims Durham was, "involved in a scheme to defraud numerous persons of money by convincing those persons to buy 'investment certificates.'" The lawsuit alleges that money was never invested. Instead, it was, "used to make interest and redemption payments to earlier victims of the scheme." Such a financial plot is typically referred to as a Ponzi scheme.
"I think they want to investigate to see if anything is wrong," Durham's attorney John Tompkins told Fox 59 News Wednesday night before word of the civil lawsuit became known. "Tim is convinced that he hasn't done anything wrong." Tompkins told Fox 59 News that he was meeting with his client late Saturday afternoon and has not returned any phone calls seeking comment on this latest development.
Federal authorities are seeking to seize Durham's Geist mansion, Los Angeles home, two Henry County properties, a 2008 Bugatti Veyron and 17 Durham-related bank accounts. The suit claims as of June 30, 2009, Durham's Fair Financial Company showed assets of $241 million while loans to Durham and various businesses totaled approximately $192 million.
Durham's legal woes have had a devastating ripple effect through Marion County republican politics. Prosecutor Carl Brizzi, a personal and political associate of Durham's, issued a statement distancing himself from the financier, claiming that while he was on the board of Fair Financial, he never participated in meetings or decisions, did not receive any compensation and has resigned from the board. Durham gave well in excess of $100,000 to Brizzi's 2006 re-election campaign and regularly holds six-figure fundraisers for the prosecutor. Tim Motsinger, an Indianapolis Metropolitan Police lieutenant and front runner for the republican nomination to become Marion County Sheriff next year, closed down his campaign Wednesday night when it was revealed that he had received a $200,000 campaign loan from Durham. Durham also serves as the chairman of the Greater Indiana Republican Finance Committee and personally steered more than $300,000 to the election campaign of Governor Mitch Daniels.
Durham's Indianapolis and Ohio offices were raided by FBI agents Tuesday. Durham's attorney said federal investigators took 100,000 documents and records.
The civil lawsuit claims Durham was, "involved in a scheme to defraud numerous persons of money by convincing those persons to buy 'investment certificates.'" The lawsuit alleges that money was never invested. Instead, it was, "used to make interest and redemption payments to earlier victims of the scheme." Such a financial plot is typically referred to as a Ponzi scheme.
"I think they want to investigate to see if anything is wrong," Durham's attorney John Tompkins told Fox 59 News Wednesday night before word of the civil lawsuit became known. "Tim is convinced that he hasn't done anything wrong." Tompkins told Fox 59 News that he was meeting with his client late Saturday afternoon and has not returned any phone calls seeking comment on this latest development.
Federal authorities are seeking to seize Durham's Geist mansion, Los Angeles home, two Henry County properties, a 2008 Bugatti Veyron and 17 Durham-related bank accounts. The suit claims as of June 30, 2009, Durham's Fair Financial Company showed assets of $241 million while loans to Durham and various businesses totaled approximately $192 million.
Durham's legal woes have had a devastating ripple effect through Marion County republican politics. Prosecutor Carl Brizzi, a personal and political associate of Durham's, issued a statement distancing himself from the financier, claiming that while he was on the board of Fair Financial, he never participated in meetings or decisions, did not receive any compensation and has resigned from the board. Durham gave well in excess of $100,000 to Brizzi's 2006 re-election campaign and regularly holds six-figure fundraisers for the prosecutor. Tim Motsinger, an Indianapolis Metropolitan Police lieutenant and front runner for the republican nomination to become Marion County Sheriff next year, closed down his campaign Wednesday night when it was revealed that he had received a $200,000 campaign loan from Durham. Durham also serves as the chairman of the Greater Indiana Republican Finance Committee and personally steered more than $300,000 to the election campaign of Governor Mitch Daniels.
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