ILNews

Lampoon: Durham used $1M from company to pay attorney

J.K. Wall
March 4, 2013
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A film company once headed by Indianapolis financier Tim Durham says he transferred $1 million to his Indianapolis lawyer, John Tompkins, while fighting federal securities fraud charges.

Durham, the former CEO of National Lampoon, was sentenced in November to 50 years in federal prison on securities fraud and other crimes related to the collapse of Akron, Ohio-based Fair Finance Co.

The lawsuit, filed Thursday in a state court in Los Angeles, where National Lampoon is headquartered, follows a similar allegation made in January by the bankruptcy trustee for Fair Finance.

National Lampoon has also sued Indianapolis attorney John Tompkins, who represented Durham unsuccessfully in the Fair Finance case, and unknown individuals it says helped make the wire transfer possible.

National Lampoon claims that one week after agreeing to a settlement with Warner Bros. over the distribution of the National Lampoon’s "Vacation" series of  movies — a deal that paid National Lampoon $2.7 million — Durham transferred $1 million of that money into the bank account of Tompkins’ Indianapolis law firm, Brown Tompkins Lory & Mastrian.

The lawsuit also claims that Tompkins was listed as the beneficiary of that transfer, which allegedly occurred on July 28, 2011. Durham covered his tracks, the lawsuit alleges, with "false, fraudulent and deceptive entries in the business records of National Lampoon." The company claims it did not discover the $1 million transfer until April 2012.

Durham resigned as CEO of National Lampoon in January 2012 after leading the company for three years.

A call to Tompkins Monday morning was not immediately returned. In January, when Fair Finance trustree Brian Bash claimed that National Lampoon had financed Durham’s defense, Tompkins gave a brief statement to IBJ.

"I don’t think it’s accurate that Lampoon funded his defense,” he said on Jan. 23. “Beyond that, I don’t have anything to say."

Tompkins is no longer representing Durham. Instead, James H. Mutchnik, a white-collar criminal defense attorney at Chicago-based Kirkland & Ellis, has agreed to represent Durham for free during an appeal of his conviction.

Bash has claimed in a lawsuit against National Lampoon that Durham propped up the company by transferring $9 million, over the course of a decade, from investors’ holdings at Fair Finance.

A federal jury in June found Durham guilty on all 12 counts stemming from the collapse of Fair. Prosecutors charged that Durham looted the company to fund a lavish lifestyle and support other failing businesses he owned.

Fair co-owner Jim Cochran, who was convicted on eight of 12 counts, received a 25-year sentence, and Rick Snow, the chief financial officer, received 10 years.

Money for the scheme came from 5,000 Ohio investors who purchased unsecured notes from Fair boasting interest rates as high as 9 percent.

Bash has been trying to recover money for the investors for nearly three years, but so far has been unable to make a distribution.

Bash sued Fair for more than $150 million and wrested a proposed $3.55 million settlement from former owner Donald Fair.

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

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  1. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

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  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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