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Durham gets 50 years for fraud scheme

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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.
 

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  1. So if I am reading it right, only if and when African American college students agree to receive checks labeling them as "Negroes" do they receive aid from the UNCF or the Quaker's Educational Fund? In other words, to borrow from the Indiana Appellate Court, "the [nonprofit] supposed to be [their] advocate, refers to [students] in a racially offensive manner. While there is no evidence that [the nonprofits] intended harm to [African American students], the harm was nonetheless inflicted. [Black students are] presented to [academia and future employers] in a racially offensive manner. For these reasons, [such] performance [is] deficient and also prejudice[ial]." Maybe even DEPLORABLE???

  2. I'm the poor soul who spent over 10 years in prison with many many other prisoners trying to kill me for being charged with a sex offense THAT I DID NOT COMMIT i was in jail for a battery charge for helping a friend leave a boyfriend who beat her I've been saying for over 28 years that i did not and would never hurt a child like that mine or anybody's child but NOBODY wants to believe that i might not be guilty of this horrible crime or think that when i say that ALL the paperwork concerning my conviction has strangely DISAPPEARED or even when the long beach judge re-sentenced me over 14 months on a already filed plea bargain out of another districts court then had it filed under a fake name so i could not find while trying to fight my conviction on appeal in a nut shell people are ALWAYS quick to believe the worst about some one well I DID NOT HURT ANY CHILD EVER IN MY LIFE AND HAVE SAID THIS FOR ALMOST 30 YEARS please if anybody can me get some kind of justice it would be greatly appreciated respectfully written wrongly accused Brian Valenti

  3. A high ranking Indiana supreme Court operative caught red handed leading a group using the uber offensive N word! She must denounce or be denounced! (Or not since she is an insider ... rules do not apply to them). Evidence here: http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

  4. A high ranking bureaucrat with Ind sup court is heading up an organization celebrating the formal N word!!! She must resign and denounce! http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

  5. ND2019, don't try to confuse the Left with facts. Their ideologies trump facts, trump due process, trump court rules, even trump federal statutes. I hold the proof if interested. Facts matter only to those who are not on an agenda-first mission.

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