ILNews

Durham gets 50 years for fraud scheme

Back to TopCommentsE-mailPrintBookmark and Share

Tim Durham will likely spend the rest of his life behind bars after a federal judge on Friday sentenced the disgraced playboy and businessman to a 50-year prison term for defrauding Ohio investors of $250 million.

U.S. Judge Jane Magnus-Stinson said three words describe both Durham, 50, and the crimes he committed: "Deceit. Greed. Arrogance."

The prosecution had sought a sentence of 225 years, taking into account 5,122 victims and a loss amount of $250 million. The judge agreed with the loss calculations but gave Durham a shorter sentence that will allow him to serve time concurrently on some of his 12 convictions.

"This case was all about numbers that were puffed up to create appearances," Magnus-Stinson said before announcing the sentence. "I’m not going to play that game. Mr. Durham is 50 years old."

The judge is scheduled later Friday afternoon to sentence Durham's two accomplices in the operation of Akron, Ohio-based Fair Finance as a Ponzi scheme.

Before Magnus-Stinson handed down the sentence, Durham stood and gave a brief statement in the courtroom.

“I feel terrible that they all lost money,” he said, his voice somber. “My family has lost all of its investments.”

Durham said he read many of the letters from victims and regrets that the company failed. He also spoke up in defense of his co-defendants. But he did not offer an apology.

“I’m not blind to how everybody has suffered,” Durham said. “I probably wasn’t as familiar with our investor base as I am now. I have regrets. I wish I would have tried harder to make some things clearer.”

Durham attorney John Tompkins said he plans to appeal the sentence within a 14-day limit.

“Anything that is likely to result in dying in prison can’t be described as a good result,” he said outside the courtroom. “But it clearly was better than a lot of what was available to (the judge).”

Unlike state prisoners, federal inmates must serve 85 percent of their sentences.

The rulings follow a morning of legal arguments over sentencing and emotional testimony from four victims of the scheme, including a 42-year-old woman named Kristen Schroeder who called herself "one of the lucky victims" since she still has time to save up and recover.

But the last word came from Barbara Lukacik, a 74-year-old nun who lost her life savings of $125,000.

"What has happened is shameful," she said. "Yes, the economy was weak, but that didn’t give you the right to steal not only my money but all the victims of Fair Financial to use as you wish, for serious greed and pampering. And you say you haven’t hurt anyone; let’s be real. I honestly believe justice must be served because it’s the righteous thing to do."

As she wrapped up her testimony, Lukacik turned toward Durham and said, "Shame on you."

After the sentencing, Lukacik would not say whether she considered the 50-year sentence appropriate.

“I was never for hurting him," she said. "I forgive him. I was for justice to be served.”

She was disappointed he didn't seem sorry: “If he had said he was sorry, that would have meant something.”

The sentencing comes three years after FBI agents raided Fair Finance and Obsidian Enterprises, a Durham company located on the 48th floor of Chase Tower in Indianapolis.

A federal jury in June found Durham guilty on all 12 felony fraud charges stemming from the collapse of Fair. Durham co-owned the firm with Jim Cochran, who was convicted of eight of 12 felony charges. Rick Snow, the company’s chief financial officer, was convicted on five of 12 counts.

The government had recommended a 225-year prison sentence for Durham, 145 years for Cochran, and 85 years for Snow. Cochran was sentenced to 25 years. All three men are expected to appeal.

All of IBJ's coverage of Tim Durham and Fair Finance is here. The IBJ is a sister publication of Indiana Lawyer.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The fee increase would be livable except for the 11% increase in spending at the Disciplinary Commission. The Commission should be focused on true public harm rather than going on witch hunts against lawyers who dare to criticize judges.

  2. Marijuana is safer than alcohol. AT the time the 1937 Marijuana Tax Act was enacted all major pharmaceutical companies in the US sold marijuana products. 11 Presidents of the US have smoked marijuana. Smoking it does not increase the likelihood that you will get lung cancer. There are numerous reports of canabis oil killing many kinds of incurable cancer. (See Rick Simpson's Oil on the internet or facebook).

  3. The US has 5% of the world's population and 25% of the world's prisoners. Far too many people are sentenced for far too many years in prison. Many of the federal prisoners are sentenced for marijuana violations. Marijuana is safer than alcohol.

  4. My daughter was married less than a week and her new hubbys picture was on tv for drugs and now I havent't seen my granddaughters since st patricks day. when my daughter left her marriage from her childrens Father she lived with me with my grand daughters and that was ok but I called her on the new hubby who is in jail and said didn't want this around my grandkids not unreasonable request and I get shut out for her mistake

  5. From the perspective of a practicing attorney, it sounds like this masters degree in law for non-attorneys will be useless to anyone who gets it. "However, Ted Waggoner, chair of the ISBA’s Legal Education Conclave, sees the potential for the degree program to actually help attorneys do their jobs better. He pointed to his practice at Peterson Waggoner & Perkins LLP in Rochester and how some clients ask their attorneys to do work, such as filling out insurance forms, that they could do themselves. Waggoner believes the individuals with the legal master’s degrees could do the routine, mundane business thus freeing the lawyers to do the substantive legal work." That is simply insulting to suggest that someone with a masters degree would work in a role that is subpar to even an administrative assistant. Even someone with just a certificate or associate's degree in paralegal studies would be overqualified to sit around helping clients fill out forms. Anyone who has a business background that they think would be enhanced by having a legal background will just go to law school, or get an MBA (which typically includes a business law class that gives a generic, broad overview of legal concepts). No business-savvy person would ever seriously consider this ridiculous master of law for non-lawyers degree. It reeks of desperation. The only people I see getting it are the ones who did not get into law school, who see the degree as something to add to their transcript in hopes of getting into a JD program down the road.

ADVERTISEMENT