Jury Convicts Ind. Financier In $200M Fraud Scheme

Source: Associated Press

INDIANAPOLIS June 20, 2012, 07:49 pm ET

INDIANAPOLIS (AP) — An Indianapolis businessman accused of looting an Ohio-based finance company after buying it and bilking about 5,000 mostly elderly investors out of more than $200 million was convicted Wednesday on all counts.

A federal jury found Tim Durham guilty of securities fraud, conspiracy and 10 counts of wire fraud. His business partners, James F. Cochran and accountant Rick D. Snow, also were convicted of conspiracy and securities fraud, and some wire fraud counts. When sentenced, the men could face decades in prison.

Durham's defense attorney had argued that the men simply made bad business decisions in the midst of the bewildering economic crisis of 2008. But prosecutors alleged that Durham and his partners pillaged Fair Finance to enrich themselves and their friends — buying classic cars, houses and casino trips — and to help Durham's other struggling businesses.

The three men were taken out of the courtroom in handcuffs and will be held in jail pending a hearing Monday in U.S. District Court in Indianapolis. Jurors began deliberations Wednesday morning after the judge denied a request from Durham's attorney for a mistrial.

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