ILNews

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

J.K. Wall
March 4, 2013
Back to TopCommentsE-mailPrintBookmark and Share

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.
 
 

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