Wednesday, October 31, 2012

Somerset Pays $500,000 To Settle Fair Finance Fraud Claim

Somerset CPAs, P.C. has agreed to pay $500,000 to the Fair Finance bankruptcy trustee to settle a claim made against the accounting firm for more than $760,000 convicted Ponzi schemer Tim Durham funneled to the firm through affiliated companies he controlled according to a court filing in a Ohio federal bankruptcy court. Trustee Brian Bash alleged that Fair Finance did not receive any value in exchange for the fees Somerset charged to the affiliated businesses, including Fair Holdings, DC Investments and Obsidian Enterprises, because they were insolvent at the time the services were performed and relied entirely on funds made available by Fair Finance to operate, making the transfers to the accounting firm fraudulent.

Meanwhile, an attorney for Durham has filed his objections to a recommendation by federal prosecutors in the southern district of Indiana that he receive a 225-year prison sentence and be ordered to pay $209 million in restitution to the small Ohio investors of Fair Finance who he was convicted of defrauding. Durham's attorney disputes the size of the losses incurred by the investors and blames federal prosecutors, in part, for the demise of the company. Durham's attorney John Tompkins called his proposed sentence "absurd." Tompkins attributed the company's demise to a raid of the firm by FBI agents and the ensuing bad publicity discussing the allegations that he operated Fair Finance as a Ponzi scheme.

2 comments:

HOOSIERS FOR FAIR TAX said...

What is absurd is stealing the life savings of hard working people and spending it on exotic cars, luxury homes, a yacht, bimbos-for-sale, politicians-for-sale (same thing), and narcissistic art.

They should make sure Durham never gets out of prison and has to repay double what he stole. His victims should be entitled to damages for mental distress.

Jon said...

Let's go back to the days of indentured servants with Tim as the only member. Farm him out to anyone he defrauded.