Durham asks court for 5-year sentence

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Convicted Ponzi schemer Tim Durham is requesting a much shorter prison stay than the life sentence federal prosecutors want him to serve.

Durham, set to be sentenced Friday on fraud charges related to the collapse of Fair Finance Co., is asking for a five-year sentence that would include three years in prison followed by two years of home confinement.

Durham made the request in a lengthy, 60-page federal court filing Monday in which his lawyer, John Tompkins, asks Judge Jane Magnus-Stinson to carefully review the filing, because Durham’s “freedom, for the rest of his life, is at stake.”

A grand jury in March 2011 indicted Durham, business associate James Cochran and former Fair Finance Chief Financial Officer Rick Snow on charges of wire fraud, securities fraud and conspiracy to commit wire and securities fraud.

A jury convicted Durham on all charges and Cochran and Snow on some charges in June. All three are scheduled to be sentenced Friday.

According to Tomkins, a presentencing report is asking that Durham be sentenced to 225 years in prison and ordered to pay $209 million in restitution.

In his filing, Tomkins called the recommendation "absurd" and said the presentencing report "is heavily influenced by an erroneous loss calculation under the advisory guidelines."

"There is no need to incapacitate Mr. Durham beyond [five years] to prevent him from committing further crimes, given his extraordinarily low risk of recidivism, or to deter others from similar conduct," the filing said.

Durham and Cochran bought Akron, Ohio-based Fair in a 2002 leveraged buyout. According to court documents, Durham drained tens of millions from the company by making loans to himself and failing businesses he owned. Millions also went toward Durham’s mansions, a yacht, part ownership of an airplane and extravagant gambling trips.

In the years after Durham and Cochran bought Fair, the Ohio Department of Commerce’s Division of Securities repeatedly allowed the company to sell additional unsecured investment certificates to as many as 5,000 Ohioans. The sales continued even after Durham drained the firm of more than $100 million through insider loans — and even after it ceased providing audited financials to the division’s examiner.

In the Monday filing, Tompkins argues that Durham was a law-abiding citizen with no criminal history before the jury returned its guilty verdicts. He was hard-working, deeply involved in his community, and a businessman whose efforts had employed hundreds of people, Tomkins said.

He said Durham never intentionally defrauded the investors, and that actual losses they suffered were brought on by the recession as much as Durham's actions.

“In this case, there is absolutely zero evidence that Mr. Durham subjectively intended any investor to experience a loss, and that’s what the law requires if ‘intended loss’ is to be used for the sentencing calculation,” Tompkins said.


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  1. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  2. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

  3. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  4. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  5. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.