Tim Durham

Durham grew up in Seymour, Indiana. He graduated from Indiana University and its law school Indiana University Robert H. McKinney School of Law in 1987.{{cite web |url=https://www.wthr.com/article/tim-durham-exclusive-interview |title=Tim Durham: Exclusive interview |author=Ann Marie Tiernon |date=November 17, 2010 |website= |publisher=WTHR |access-date= |quote=}} [https://web.archive.org/web/20180621044602/https://www.wthr.com/article/tim-durham-exclusive-interview Archived version]

He worked for law firm Ice Miller after graduation, and in 1989 he married Joan SerVaas. Durham soon joined the investment firm owned by his wife's father, Indianapolis financier and longtime city council president Beurt SerVaas. Durham left the firm after his 1998 divorce. Durham was involved in taking over numerous ailing companies, including school bus manufacturer Carpenter, cargo trailer makers Danzer Industries and United Expressline, U.S. Rubber Reclaiming, and bus leasing firm Pyramid Coach.{{Citation needed|date=March 2018}}

In 2001, he took his company Obsidian public. The public company then invested in a range of companies, including a rally-car builder, a plastic surgery center, a car magazine, a tour bus operator, a limousine rental company, a nightclub, an Italian restaurant, and a cell-phone billing processor. Obsidian also invested in mobile device distributor BrightPoint and National Lampoon, Incorporated. From 2001 to 2006, Obsidian had cumulative losses of $30 million, according to the bankruptcy trustee. During that time Obsidian was borrowing heavily from Fair Finance Company, an Akron, Ohio-based creditor. Durham and accomplice James Cochran had acquired Fair Finance through a holding company in 2002.{{cite web |url=https://www.bloomberg.com/businessweek/news/2012-11-30/ex-national-lampoon-ceo-tim-durham-gets-50-years-prison/ |title=Ex-National Lampoon CEO Tim Durham Gets 50 Years in Prison |author= |date=November 30, 2012 |website= |publisher=Business Week |access-date= |quote=}}{{Dead link|date=March 2018}} Durham appointed Dan Laikin as CEO of National Lampoon Inc. The SEC alleged Laikin conspired to inflate the company's stock price to $5 in order to prevent the company from being delisted from the American Stock Exchange.Irwin, Mary Jane (December 19, 2008). [https://www.forbes.com/2008/12/19/laikin-lampoon-scandal-face-markets-cx_mji_1218autofacescan01.html Lampooned By Its Own Petard.] Forbes Laikin alerted authorities to Durham's financial schemes in hopes of getting a reduced sentence. Durham took over as Lampoon CEO after Laikin stepped down.{{Cite magazine |last=Wallace |first=Benjamin |date=2017-05-01 |title=Can Anyone Repair National Lampoon's Devastated Brand? |url=https://www.vanityfair.com/hollywood/2017/05/can-anyone-repair-national-lampoon |access-date=2022-07-11 |magazine=Vanity Fair |language=en-US}}

The offices of Obsidian and Fair Finance were raided by federal agents in 2009, suspected of involvement in a Ponzi scheme. Durham was arrested in 2011.Blankstein, Andrew (March 16, 2011). [http://latimesblogs.latimes.com/lanow/2011/03/national-lampoon-timothy-durham-arrested-alleged-ponzi-scheme.html National Lampoon chief arrested in alleged $200-million Ponzi scheme.] Los Angeles Times

On June 20, 2012; an Indianapolis jury convicted Durham of 10 counts of wire fraud, one count of securities fraud, and one count of conspiracy to defraud. On November 30, 2012; he was sentenced to 50 years in prison–at his age, effectively a life sentence.Harris, Andrew. [https://www.bloomberg.com/news/articles/2012-11-30/ex-national-lampoon-ceo-tim-durham-gets-50-years-prison Ex-National Lampoon CEO Tim Durham Gets 50 Years Prison]. Bloomberg News, 2012-11-30. While he faced a maximum of 225 years under sentencing guidelines, federal district judge Jane Magnus-Stinson said there was no point in handing down a sentence that long.Ritchie, Carrie (November 30, 2012). [https://web.archive.org/web/20121203031704/http://www.indystar.com/viewint/article/20121130/NEWS02/121130008/Judge-sentences-Tim-Durham-50-years-prison-defrauding-investors Judge sentences Tim Durham to 50 years in prison for defrauding investors] Indianapolis Star Nonetheless, Joe Hogsett, the U.S. Attorney for the Southern District of Indiana, called it the longest sentence ever imposed for a white-collar offense in Indiana history.

On September 4, 2014, a federal appeals court overturned two of 10 wire fraud counts against Durham and ordered a new sentencing hearing, saying prosecutors failed to enter some key evidence into the trial record.Russell, John. [http://www.indystar.com/story/news/2014/09/04/two-fraud-counts-tim-durham-overturned/15087747 Two fraud counts against Tim Durham overturned]. The Indianapolis Star, 2014-09-04. On June 26, 2015, Durham had his 50-year sentence reinstated. Magnus-Stinson said that "the huge number of victims and the amount of devastation" left little reason to reduce the original sentence. He is serving his sentence at United States Penitentiary, McCreary in McCreary County, Kentucky.Olson, Scott. [http://www.ibj.com/articles/53803-durham-fails-to-convince-judge-to-reduce-50-year-sentence Durham fails to convince judge to reduce 50-year sentence]. Indianapolis Business Journal, 2015-06-26. He was also sentenced to two years' supervised release, but this was largely academic given the likelihood that he will die in prison. His earliest possible release will be February 1, 2056, when he will be 94 years old.

Fair Finance Co. trustee Brian Bash alleged in a lawsuit filed in 2012 that Durham's mother, Mitza Durham, received more than $831,000 in "fraudulent transfers" from her son between 2006 and 2009 that needed to be repaid to the company estate.{{cite web |url=https://www.ibj.com/articles/32102-fair-trustee-sues-durham-s-mother-for-831-000 |title=Fair trustee sues Durham's mother for $831,000 |author=Greg Andrews |date=January 22, 2012 |website= |publisher=Indianapolis Business Journal |access-date=March 5, 2018 |quote=}} In 2014, Mitza Durham agreed to repay Fair Finance Co. $500,000, plus interest.{{cite web |author= |date=2014-09-15 |title=Mother of Fair Finance scamster Durham settles lawsuit for $500,000 |url=https://www.equities.com/index.php?option=com_k2&view=newsdetail&id=73605 |url-status=dead |archive-url=https://archive.today/20150217030528/http://www.equities.com/index.php?option=com_k2&view=newsdetail&id=73605 |archive-date=2015-02-17 |access-date=2022-07-10 |website=Equities.com |publisher= |quote=}}{{cite web |url=https://www.ohio.com/akron/business/mother-of-fair-finance-scamster-durham-settles-lawsuit-for-500-000 |title=Mother of Fair Finance scamster Durham settles lawsuit for $500,000 |author=Jim Mackinnon |date=September 14, 2014 |website= |publisher=Akron Beacon Journal |access-date=March 5, 2018 |quote=}}

In 2016, Durham was disbarred by the Indiana Supreme Court.{{Cite web |last=Nelson |first=Jennifer |title=Indiana Supreme Court disbars Tim Durham |url=https://www.theindianalawyer.com/articles/40935-indiana-supreme-court-disbars-tim-durham |access-date=2022-07-11 |website=The Indiana Lawyer |date=20 July 2016 |language=en-US}}

According to Businessweek, Durham was a prominent Republican fundraiser. He was on the steering committee for Mitch Daniels' successful gubernatorial bid in 2004 and headed the Indiana fundraising effort for Rudy Giuliani's 2008 presidential campaign.

Durham's exploits are featured in the 2015 episode "Playboy of Indiana", of the television series American Greed.

{{reflist}}

• [http://www.kccllc.net/fairfinance Fair Finance Company liquidation site]
• [http://www.indystar.com/assets/pdf/BG1831511221.PDF U.S. v. Durham, 11-cr-00042, U.S. District Court, Southern District of Indiana (Indianapolis)]

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Category:1962 births

Category:Living people

Category:American people convicted of fraud

Category:Indiana University alumni

Category:Pyramid and Ponzi schemes

Category:Indiana University Robert H. McKinney School of Law alumni