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Newspapers join fight to unseal Durham records

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The Indianapolis Business Journal and The Wall Street Journal have joined the legal fight to unseal search-warrant documents related to the federal investigation of businessman Tim Durham and Akron, Ohio-based Fair Finance Co. The IBJ is a sister publication of Indiana Lawyer.

Akron Beacon Journal and The Indianapolis Star launched the effort in mid-December. This week, an Akron attorney filed an amended motion in federal courts in Indiana and Ohio bringing in the additional newspapers. The filing seeks unsealing in part because of "intense community and national interest."

The probe has been public since Nov. 24, when FBI agents executed search warrants at Durham's Indianapolis office and at Fair's headquarters. Agents hauled away computer equipment and bankers boxes full of documents. Investigators have refused to provide information about the warrants, saying they are sealed.

The U.S. Attorney's Office in Indianapolis has not filed a response to the original motion to unseal. Timothy Morrison, the acting U.S. attorney for the Southern District of Indiana, would not comment today about what position his office will take.

Court papers filed by Morrison's office Nov. 24 allege Fair operated as a Ponzi scheme, using money from new investors to pay what it owed prior investors, thereby "lulling the earlier victims into believing that their money was being [handled] responsibly."

The raids occurred one month after IBJ published an investigative story that raised questions about whether Fair Finance had the financial wherewithal to repay Ohio investors who had purchased nearly $200 million in investment certificates.

The story reported that, since Durham bought the consumer-loan business in 2002, he had used it almost like a personal bank to fund a range of business interests, some of them unsuccessful. The story noted that he and related parties owe Fair more than $168 million.

In the amended motion to unseal, Karen Lefton, an attorney for Brouse McDowell in Akron, argued that keeping the records sealed violates the newspapers' common law right to access judicial records, as well as their First Amendment rights.

"It is highly unlikely the government would be able to meet its burden of showing that sealing is essential to preserving the integrity of its ongoing investigation," the motion says.

"In addition, all the principal parties - Mr. Durham, his companies' leaders, the prosecutor - already know the contents of those file cabinets and computers that were seized from Fair Finance. Indeed, it seems that by sealing the search warrant documents, that information is being withheld only from those for whom it is most important - the public and innocent investors who now must undertake recovery on their own."

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  1. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  2. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  3. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  4. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  5. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

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