Durham Taken Into Custody By FBI In Los Angeles

Fox 59 News is reporting that the FBI has taken Tim Durham into custody for questioning in Los Angeles today. See video above. Fox 59 News describes his business empire as being in a state of collapse. The report indicates that the feds visited restaurants owned by Durham prior to today in search of incriminating evidence. Fox 59 News attempted to obtain a reaction from one of Durham's closest friends, Marion Co. Prosecutor Carl Brizzi, who did not respond to press inquiries on the matter. If you have information about any of Durham's business activities that you would like to report to the FBI, call 1-800-CALL FBI. Advance Indiana understands that members of Ohio's Amish community may be the unlikely victims here as investors in Fair Finance. The high interest certificates of investment offered by the company were enticing to some investors, but they are not insured deposits like a bank offers.

FBI Raids Tim Durham's Offices

Watch the local politicians start running for cover. The FBI raided the offices of one of their biggest benefactors, Indianapolis business tycoon Tim Durham, this afternoon. FBI agents began carting off files from Durham's top floor offices in the Chase Tower. A separate raid took place in Akron, Ohio where Fair Finance has an office. They're investigating Durham's Ohio-based Fair Finance Company and Obsidian Enterprises. FBI agents are remaining mum about the purpose behind the execution of search warrants on Durham's business today. This Advance Indiana entry on an IBJ expose' by Greg Andrews last month will give you a pretty good indication of what federal agents are investigating. See also the following possible related entries here and here. According to a recent filing with Ohio securities regulators, Durham's Fair Finance proposed a new securities offering that raised a lot of red flags in light of the IBJ report. Ohio security regulators have been dragging their feet on taking action to protect investors despite ample warning signs conveyed to them by interested parties; however, Ohio officials are holding up approval of this latest offering until questions are answered. That may set off a chain reaction as Durham's company may have desparately needed those new funds to pay off old debts. Durham is shown above at a lavish Halloween Party he recently hosted at his new Hollywood mansion for National Lampoon, another one of his company's that has faced securities fraud allegations. Durham is dressed up as the Mad Hatter character from "Alice In Wonderland." The IBJ has an online update on this developing story here. Political fallout analysis: No politician is closer to Tim Durham than Marion Co. Prosecutor Carl Brizzi. New disclosures of the extent of that relationship that will emerge in the coming days will probably end his political career. Durham recently hosted a fundraiser for Marion Co. GOP sheriff candidate Tim Motsinger. Aspiring Democratic mayoral hopeful, Brian Williams, sits on the board of Obsidian Enterprises. Reporters may soon begin asking some local politicians "what do you know and when did you know it?" Look for campaigns to begin purging themselves of Durham campaign contributions in short order. Brizzi has pocketed more than $150,000 in campaign contributions from Durham.

Ballard Stacking CIB With More Conflicted Political Insiders

There isn't a campaign promise Greg Ballard won't break. Since becoming mayor of Indianapolis, Ballard has basically been conducting a public auction selling off the City to the highest bidders. This is once again reflected in the opportunity he passed up to clean up the corrupt Capital Improvement Board. Instead of appointing independent-thinking people who put the taxpayers' interests ahead of their own self-interests to the CIB, Ballard has announced a group of new appointees that is teaming with conflicts.

Ballard will replace the board's president, Bob Grand, whose law firm represented the Simons and their Indiana Pacers, with the Board's current treasurer, Ann Lathrop. She works for Crowe Horwath, a CPA consulting firm that relies heavily on government contracts. Because she is a former city controller and has strong political ties to people in government, she was hired by the Crowe Horwath (see water company deal) to help land new business for the firm through her political connections.

The list of remaining appointees don't get much better than Lathrop. Outgoing Chief of Staff Paul Okeson, who has just taken a job with a major city contractor and big political contributor, Keystone Construction, will be taking a seat on the board. Jim Dora, Jr. is a big hotel operator who just happens to own a hotel directly across the street from Lucas Oil Stadium. Carolene Mays, a Democrat, is the sister of businessman Bill Mays of 300 East infamy (the bar in the Julia Carson Government Center), the same brother who was recently tied to an insider trading scandal during the acquisition of a local bank on whose board he served. Carolene operates the Indianapolis Recorder, which her brother owns, a newspaper that serves the City's African-American community. Her newspaper went with the meme that guys like Monroe Gray and Ron Gibson were under attack because they were African-American; it had nothing to do with their public behavior and actions. Since when did we start putting newspaper publishers on public boards?

Ballard is reappointing Jay Potesta, a union boss for the Sheet Metal Workers union. Potesta's day job is to make sure as much of your taxpayer dollars as possible gets invested in public works projects that will employ his fellow union members at top dollar wages. He could give a damn less about the taxpayers' wallets. Ballard is also appointing David Shane, CEO of LDI, Ltd., a firm founded and chaired by businessman Andre Lacy. He previously served as an education adviser to Gov. Mitch Daniels. Shane is perhaps the only new appointee who might be capable of exercising independent judgment on the board.

If you had any doubt about Ballard's intentions, these latest round of appointees should leave no doubt in your mind. The guy is all about following the orders handed to him by a small group of elitist insiders who are all about lining their pockets at taxpayers expense. They throw Ballard free memberships to country clubs, treat him to expensive dinners, fill up his campaign coffers and take him on overseas junkets, and he's all too happy to turn over the City's checkbook to them to enjoy as they please. What a sell out of the first order.

Mayor's Chief Of Staff Resigns To Go To Work For City Contractor

More on "Pay to Play is the Ballard Way." Mayor Greg Ballard's Chief of Staff Paul Okeson has announced his resignation to take a job with Keystone Construction, another major city contractor that has contributed large sums to Ballard's campaign committee. Okeson told WTHR he couldn't afford to raise a family on the lowly pay of a Chief of Staff. Before joining the Ballard administration, Okeson worked as a government relations consultant for Bernardin, Lochmueller and Associates, another major city contractor. Okeson will be replaced by Corporation Counsel Chris Cotterill. Coincidentally, Ersal Ozdemir of Keystone Construction accompanied Mayor Ballard on his junket to Europe this past week. I'm sure there's no connection between Okeson's new job, city contracts and political contributions. The Mayor's office expects to make more staff change announcements at a press conference tomorrow. Six new appointments to the Capital Improvement Board are expected to be made.

Zoeller Seeks To Recover Misspent Public Funds

Attorney General Greg Zoeller has brought a lawsuit against five former Chesterfield, Indiana officials he says misspent more than $259,000 in public funds. The lawsuit is based on the findings of a October 26, 2009 audit by the State Board of Accounts. “The claim that the town’s former top fiscal officer and the town’s former police chief hatched a scheme to defraud the taxpayers who employed them appears to be the ultimate betrayal of the public’s trust,” Zoeller said. Here are the specific allegations Zoeller has made against the former employees:

•Former town clerk-treasurer and town manager Christopher Parrish. The lawsuit alleges Parrish paid himself $31,535.91 in fictitious travel expenses and approved phony claims and improperly issued reimbursement checks for four other defendants. Parrish resigned from his town positions in January 2009.

•Former town marshal James Kimm. The complaint alleges Kimm submitted falsified mileage reimbursement claims to Parrish for destinations to which he didn’t travel and was paid $52,553.06. He also allegedly received $1,700 in petty cash reimbursements from Parrish. The State Board of Accounts audit noted that Kimm’s description for most of the out-of-state travel was to pick up military surplus from the U.S. Defense Reutilization and Marketing Office. When examiners checked with the DRMO, they reportedly found no record of anyone from Chesterfield, including Kimm, obtaining equipment from a DRMO location, the audit said. Kimm resigned as town marshal in January 2009.

•Joseph Brown, a former part-time police officer for Chesterfield who is half-brother of Kimm. The lawsuit alleges Brown participated in a scheme with Parrish and Kimm where Brown submitted phony claims for automotive repairs to town-owned vehicles that never were performed. The State Board of Accounts examiners reported that the street address of “Brown’s Automotive” listed on the invoices is a home in a residential neighborhood where there was no indication of commercial automotive work taking place. Brown received 24 checks totaling $115,391.44 between January 2007 and March 2008, the audit found.

•Christopher Walters, a former town maintenance superintendent, and his brother James Walters, a former town maintenance employee. The suit alleges the two former employees were part of a scheme with Parrish where they were paid $37,600 for repair work to town government buildings that never occurred, according to the audit. The suit alleges James Walters owes $13,002.88 for hours he was paid but didn’t work and owes $2,850 for tools improperly purchased with town funds. Christopher Walters allegedly was overpaid by $4,992.76 for hours he didn’t work.

Not surprisingly, Chesterfield's Town Council had no idea the employees were defrauding the municipal government before the State Board of Accounts released its audit.

Another Illinois Official Found Dead

It's a tough time for Illinois officials. The head of the Sangamon County Circuit Clerk's passport and traffic division was found dead in Lake Michigan near Buckingham Fountain in Chicago. Matthew Dennison was attending an Association of Illinois County Officials meeting in Chicago with his boss, Sangamon County Circuit Clerk Tony Libri, according to the Chicago Tribune, which reports the following:

Libri said he learned of Dennison's death when Chicago police knocked on his door at about 9 a.m., asking him to identify the body. Libri had few details of the case, but said he didn't suspect foul play or suicide.

"I had dinner with him last night and he was fine. He wasn't depressed," Libri said.

Dennison had worked with him since 1996 and is survived by his wife and three children.

"He's my employee but he's one of my close friends," he said. "He was a great guy."

Libri says he doesn't suspect foul play or suicide. At least three Chicago political insiders under investigation have allegedly committed suicide over the past two years. Did he decide to go for a swim in Lake Michigan this time of the year? The State Journal-Register says Dennison, a 40-year-old, may have slipped and fallen into the lake and drowned or had a heart attack. He was found early this morning wearing the same clothes he was wearing when he and Libri dined the evening before. Dennison also worked part-time for a local radio station according to the Journal-Register.

When I lived in Springfield back in the 1980s, Libri worked as a weatherman for WICS, a local NBC television affiliate in Springfield. I recall having fun with my roommate and his fiance' poking fun at him during his weather broadcasts. Later, my roommate's girlfriend broke off their engagement and wound up marrying Libri. Ouch! I always wondered what made her change her opinion of him. Libri is the current Sangamon Co. GOP Chairman and a very close political associate of William Cellini, a wealthy businessman and big-time political insider who is currently facing indictment on public corruption charges arising out of the awarding of state pension investment contracts in Illinois under former Gov. Rod Blagojevich.

Ballard's Strange Set Of Circumstances

During the recent "Mayor's Night Out for Indy Youth, a young man, Kellin Thomas, asked Mayor Greg Ballard, "When and why did you decide to become the mayor?" Ballard's rambling response to this simple question reminded me of that moment during the 1992 vice presidential debate when Ross Perot's running mate, Admiral James Stockdale, rambled on about "Who am I and why am I hear?" moment. Here's how Ballard responded:

Okay, That's a good question. The uh. I really felt like the city was, uh, going in the wrong direction, and I just thought we could do a better job than what we were doing. That's really pretty much it. I, uh, do this not for me. I'm very candid about this. I spent 23 years in the Marine Corps. This is strictly public service to me. That's all it is. There is no ego in this for me. I'm just trying to do the right thing here for the city. I thought we could do a little bit better. I thought spending was out of control. I thought crime was up. That sort of thing. I thought we can do better. I think so far that's proven to be true. Spending is under control, crime is down and that sort of thing. I decided that. It's a strange set of circumstances when I did that. It was in the spring of 2007. I had just a couple of people asking me you need to look at that--look at running for mayor. I had something else in mind. I knew I was going to do public service again after the Marine Corps. My kids were growing up. It's time to go do something and the opportunity arose after a strange set of circumstances in the spring of 2007, that I won't necessarily go into--it might take 10 minutes to go through all of that but through a set of circumstances I was able to get the nomination and win the election.

"A strange set of circumstances?" I'll say. By the way, Greg "I'll end country club politics in Indianapolis" Ballard is throwing another fundraiser hosted by Hunt Construction Co. and Riley Bennett & Egloff law firm, both major contractors with the City of Indianapolis. So much for campaign promises to clean up city government. Pay to play is the Ballard way. His crack team of advisers are holding a press conference today at the scene of the latest murder in the City to reassure people in the near southside neighborhood while the Mayor is on his latest junket to Europe.