SEC Issues Subpoena For Durham's CLST Holdings

A Form 8-K filing with the SEC by CLST Holdings, another company controlled by Tim Durham, has been subpoenaed by the SEC in connection with the investigation of Ohio-based Fair Finance, Inc., a Durham-owned company accused of running a Ponzi scheme by the federal government. The company and each of its directors have received subpoenas according to the filing. The filing reads. in part:

Also, on November 24, 2009, we received a subpoena from the Division of Enforcement of the Securities and Exchange Commission ("SEC") entitled "In Re Fair Finance." The subpoena requires us to produce a variety of documents relating to our portfolio transactions, including transactions with Fair, and also seeks documents relating to several individuals, including our directors, Mr. Durham, Robert Kaiser, and David Tornek. A copy of the subpoena is attached hereto as Exhibit 99.3.

Each of our directors, Timothy S. Durham, Robert Kaiser, and David Tornek have also received a subpoena from the SEC with the subject notation "In Re Fair Finance." Mr. Kaiser is also our Chief Executive Officer.

The Company and its directors expect to cooperate with the SEC in their investigation. We are currently unable to predict what the outcome of the investigation will be.

For more on CLST Holdings and its relation to Fair Finance, click here.