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High-priced Chicago firm handling Durham’s appeal pro bono

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Just because Tim Durham isn’t paying a lawyer to handle the appeal of his 50-year federal prison sentence doesn’t mean he’s getting shortchanged.

Durham, sentenced in November on criminal fraud charges relating to the collapse of Akron, Ohio-based Fair Finance Co., has the firepower of one of the nation's largest law firms behind him.

James H. Mutchnik, a white-collar criminal defense attorney at Chicago-based Kirkland & Ellis, revealed in court documents earlier this month that he’ll be representing Durham without charge during his appeal.

Durham filed in December to appeal his conviction to the 7th Circuit U.S. Court of Appeals in Chicago, but said he had no money to hire an attorney.

U.S. District Judge Jane Magnus-Stinson granted his request to proceed with his case as an indigent after Durham told her that his multimillion-dollar home is in foreclosure and his financial assets are tied up in bankruptcy proceeding of the companies he used to control.

It’s unclear why Mutchnik chose to represent Durham pro bono. He didn’t return a phone call from IBJ, and a firm spokesman declined to comment beyond issuing a statement confirming that Mutchnik is in fact leading Durham’s federal appeal.

Durham’s previous counsel, Indianapolis criminal defense lawyer John Tompkins, is no longer involved in the case.

“I know that Kirkland takes pro-bono cases on a regular basis,” he said. “This hit their radar somehow.”

It’s not uncommon for certain law firms to handle white-collar criminal appeals without expecting to be paid. Their fees often are too expensive for many defendants to afford, and handling an appeal pro bono gives their lawyers additional experience.

Only a small percentage of federal appeals are heard orally by judges, as most are addressed in written rulings.

Having Kirkland & Ellis representing Durham spares Magnus-Stinson from appointing a public defender.

With 1,442 lawyers in 10 global offices, Kirkland & Ellis is the world’s 13th-largest law firm, according to the National Law Journal’s latest ranking of the 250 biggest firms.

Mutchnik earned his law degree in 1989 from the Northwestern University School of Law. His biography on the firm’s website says he represents individuals and corporations in antitrust and white-collar criminal defense cases.

His legal work includes appearances before various investigative agencies, including the U.S. Department of Justice, the Federal Trade Commission and the Securities and Exchange Commission.   

A jury convicted Durham of securities fraud, conspiracy and 10 counts of wire fraud for orchestrating a Ponzi scheme that swindled 5,000 Ohio investors out of more than $200 million.

Unlike state prisoners, federal inmates must serve at least 85 percent of their sentences, meaning Durham would have to live to 93 to survive his sentence.

Last month, Fair Finance bankruptcy trustee Brian Bash, charged with recovering funds for Fair investors, alleged in a court filing that National Lampoon Inc. funded Durham’s defense during his trial.

Durham was CEO at National Lampoon from 2008 until stepping down in January 2012. Bash is suing the Los Angeles-based company and is seeking to recover $9 million that Durham provided it over the past decade.

Fair Finance co-owner Jim Cochran received a 25-year sentence and Rick Snow, the company’s chief financial officer, received 10 years.

All of IBJ's coverage of Tim Durham and Fair Finance can be found here.

The IBJ is a sister publication of Indiana Lawyer.
 
 

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  1. On a related note, I offered the ICLU my cases against the BLE repeatedly, and sought their amici aid repeatedly as well. Crickets. Usually not even a response. I am guessing they do not do allegations of anti-Christian bias? No matter how glaring? I have posted on other links the amicus brief that did get filed (search this ezine, e.g., Kansas attorney), read the Thomas More Society brief to note what the ACLU ran from like vampires from garlic. An Examiner pledged to advance diversity and inclusion came right out on the record and demanded that I choose Man's law or God's law. I wonder, had I been asked to swear off Allah ... what result then, ICLU? Had I been found of bad character and fitness for advocating sexual deviance, what result then ICLU? Had I been lifetime banned for posting left of center statements denigrating the US Constitution, what result ICLU? Hey, we all know don't we? Rather Biased.

  2. It was mentioned in the article that there have been numerous CLE events to train attorneys on e-filing. I would like someone to provide a list of those events, because I have not seen any such events in east central Indiana, and since Hamilton County is one of the counties where e-filing is mandatory, one would expect some instruction in this area. Come on, people, give some instruction, not just applause!

  3. This law is troubling in two respects: First, why wasn't the law reviewed "with the intention of getting all the facts surrounding the legislation and its actual impact on the marketplace" BEFORE it was passed and signed? Seems a bit backwards to me (even acknowledging that this is the Indiana state legislature we're talking about. Second, what is it with the laws in this state that seem to create artificial monopolies in various industries? Besides this one, the other law that comes to mind is the legislation that governed the granting of licenses to firms that wanted to set up craft distilleries. The licensing was limited to only those entities that were already in the craft beer brewing business. Republicans in this state talk a big game when it comes to being "business friendly". They're friendly alright . . . to certain businesses.

  4. Gretchen, Asia, Roberto, Tonia, Shannon, Cheri, Nicholas, Sondra, Carey, Laura ... my heart breaks for you, reaching out in a forum in which you are ignored by a professional suffering through both compassion fatigue and the love of filthy lucre. Most if not all of you seek a warm blooded Hoosier attorney unafraid to take on the government and plead that government officials have acted unconstitutionally to try to save a family and/or rescue children in need and/or press individual rights against the Leviathan state. I know an attorney from Kansas who has taken such cases across the country, arguing before half of the federal courts of appeal and presenting cases to the US S.Ct. numerous times seeking cert. Unfortunately, due to his zeal for the constitutional rights of peasants and willingness to confront powerful government bureaucrats seemingly violating the same ... he was denied character and fitness certification to join the Indiana bar, even after he was cleared to sit for, and passed, both the bar exam and ethics exam. And was even admitted to the Indiana federal bar! NOW KNOW THIS .... you will face headwinds and difficulties in locating a zealously motivated Hoosier attorney to face off against powerful government agents who violate the constitution, for those who do so tend to end up as marginalized as Paul Odgen, who was driven from the profession. So beware, many are mere expensive lapdogs, the kind of breed who will gladly take a large retainer, but then fail to press against the status quo and powers that be when told to heel to. It is a common belief among some in Indiana that those attorneys who truly fight the power and rigorously confront corruption often end up, actually or metaphorically, in real life or at least as to their careers, as dead as the late, great Gary Welch. All of that said, I wish you the very best in finding a Hoosier attorney with a fighting spirit to press your rights as far as you can, for you do have rights against government actors, no matter what said actors may tell you otherwise. Attorneys outside the elitist camp are often better fighters that those owing the powers that be for their salaries, corner offices and end of year bonuses. So do not be afraid to retain a green horn or unconnected lawyer, many of them are fine men and woman who are yet untainted by the "unique" Hoosier system.

  5. I am not the John below. He is a journalist and talk show host who knows me through my years working in Kansas government. I did no ask John to post the note below ...

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