WISH-TV reports on a confidential real estate listing on MIBOR for Tim Durham's Geist mansion with an asking price of $5.5 million. The listing cannot be accessed on MIBOR's website unless you know the confidential listing number assigned to it according to WISH-TV. Durham's Fair Finance Company is being liquidated in an involuntary bankruptcy proceeding in Ohio initiated by investors who claim Durham defrauded them when he ran the finance company like a Ponzi scheme. Durham is alleged to have diverted close to $200 million from the company to other businesses he owned. Fair Finance closed after FBI agents raided Durham's business offices in Ohio and Indianapolis last November. No criminal charges have been brought against him or his business partners to date.
Although the U.S. Attorney's Office in Indianapolis initially filed a forfeiture action against Durham-owned properties, including his Geist mansion, it withdrew that action within days. Acting U.S. Attorney Tim Morrison claimed he had assurances Durham's assets would not be diverted or sold. Nonetheless, this blog and other media sources have documented a number of asset sales that appear to have occurred, including assets of Durham's business partner, James Cochran. The bankruptcy trustee has told Fair Finance investors in Ohio, many of whom are Amish, that it is unlikely he will be able to recover any of their money. Durham owes close to $50,000 in unpaid property taxes on the home. Neighbors claimed they saw moving trucks outside the home this winter hauling away personal belongings from the home, which contained very valuable artwork. Durham also had an extensive collection of pricey collector cars worth several million dollars. WISH-TV was unable to obtain a comment from the bankruptcy trustee about Durham's private efforts to sell his home. Recent bankrutpcy filings by the trustee have made no reference to the Geist home or its potential sale.
UPDATE: The IBJ's Greg Andrews is reporting that Durham will be required to turn over any proceeds from the sale of the home and other personal possessions, such as artwork, to the bankruptcy trustee for Fair Finance.
Wow, WISH-TV scooped somebody?
ReplyDeleteWISH has always had 'connections' with Durham. Remember when he took delivery of the infamous Veyron sports car? WISH was there at the house as it came off the truck.
ReplyDeleteHow about:
ReplyDeletehttp://www.zillow.com/homes/14353-113TH-ST,-46040_rb/
Assessed for about 2.5 million
Water company stole that land from the farmers who owned it. Of course, we all took it from the Miami Indians,s o what goes around comes around.
Makes me wonder just who is the trustee that 'failed to mention' this real estate?
ReplyDeleteSo Timmy's still working his scams, now by putting his house on the market for twice what it's worth.
ReplyDeleteAre we surprised?
Personally I think this is just another of Durham's sick games. As of WISH TV's last accounting he owed Shelby County Bank $3.5 on a first mortgage with a secondary line of credit of $1.5M. Do the math--there is no equity in the house and so why would he pay? He is probably in default.
ReplyDeleteSomeone needs to call the bank examiner for Shelby County to audit this group of losers loans--you have to think they are all in default, which begs the question of why Shelby has not tried to do anything such as prosecute Durham for mortgage fraud.
Leesa, I'd say there *has* to be some equity in the house, at least to the extent that the line of credit isn't drawn on. The bank surely included a limiting advance rate on the line as well. Given all the revelations we've seen, maybe the equity portion came from Fair.
ReplyDeleteDoesn't mean he's not in default, though....
Leesa, I'd say there *has* to be some equity in the house, at least to the extent that the line of credit isn't drawn on. The bank surely included a limiting advance rate on the line as well. Given all the revelations we've seen, maybe the equity portion came from Fair.
ReplyDeleteDoesn't mean he's not in default, though....
DI,
ReplyDeleteListing a house for twice what it's worth isn't a "scam." The free market will take care of that.
The "scam" is that this asset isn't frozen to be used to pack back the investors who got ripped off.
Leesa, he probably got those mortgages due to inflated appraisals that used to be common up until a few years ago. Plus the house was probably worth substantially more then.
ReplyDeleteRegardless, he can't sell the house for less than the mortgages without getting the lenders' permission to do a short sale.