Tuesday, December 22, 2009

Durham: I'm Shocked, Shocked By These Allegations

Indianapolis businessman Timothy Durham finally made his first appearance in the Wall Street Journal (subscriber accessible only), but I suspect it's not the story he once envisioned. In a rare interview since federal agents executed search warrants on his businesses last month and accused him of running a Ponzi scheme, Durham told the WSJ's David Kesmodel that he was shocked by allegations of wrongdoing on his part. "In an interview, Mr. Durham, 47 years old, said he was shocked by the FBI raids and feels 'emphatically' that the allegations 'weren't true,'" writes Kesmodel. Explaining why he loaned so much of Fair Finance's funds to businesses he controlled, Durham responded that he believed it was better "to invest in companies that you know the most about." "Such related-party loans were disclosed to investors and Ohio regulators," Durham told Kesmodel.

Kesmodel's story notes the political fallout from the Durham investigations. He cites the withdrawal of Tim Motsinger from the sheriff's race because "after returning all of Mr. Durham's campaign contributions . . . the loss of that money meant he couldn't compete." "The county's Republican prosecutor, Carl Brizzi, wrote on his blog that he 'should have conducted greater due diligence' before joining the board of one of Mr. Durham's firms this year," Kesmodel writes. He also quotes a spokeswoman for Gov. Daniels as saying he will not return the $195,000 Durham contributed to his campaign because the money is already spent.


Craig said...

Tim is "shocked?" Give me a break. If he didn't know the 11/24/2009 FBI raid was coming, then why is it he let his employees off for a week of vacation the preceeding Friday before the raid? Never in the history of Fair had anyone been given that entire week off.

Tim "borrowed" the money to loan his businesses? No, he stole it. Why would you lend yourself mortgage money at 12% when you can get a mortgage at Chase--the very tower Tim rents from--for 6%? Give me a break!

Carl Brizzi didn't know any of this? Carl Brizzi didn't know that Brightpoint was going to buy Cellstar? Carl Brizzi didn't know another secret at CLST that will soon be public news?

I can't wait for these guys to live the life of bologna sandwiches and water. Carl Brizzi convicted the Hamilton County crew on less evidence.


How is it Durham has money to lend to his other businesses, but no money to pay back his investors?

Advance Indiana said...

Perhaps his businesses didn't make any money to repay the loans.


But why is he lending money to his businesses, when he can't pay back his investors?

Craig said...

If you hire me as a maid to come into your house, and I ask to borrow a warm coat and you say YES, does that give me the right to empty out your house, completely, and later state you agreed to loans to me?

fulpy said...

Is tainted money less tainted just because it's been spent? Assuming this is all true, investors should come after everyone who's rec'd money to try and get it back. Of course, maybe this just proves the Gov has no further political aspirations, because an opponent could have a field day with this.