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Newspapers join fight to unseal Durham records

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The Indianapolis Business Journal and The Wall Street Journal have joined the legal fight to unseal search-warrant documents related to the federal investigation of businessman Tim Durham and Akron, Ohio-based Fair Finance Co. The IBJ is a sister publication of Indiana Lawyer.

Akron Beacon Journal and The Indianapolis Star launched the effort in mid-December. This week, an Akron attorney filed an amended motion in federal courts in Indiana and Ohio bringing in the additional newspapers. The filing seeks unsealing in part because of "intense community and national interest."

The probe has been public since Nov. 24, when FBI agents executed search warrants at Durham's Indianapolis office and at Fair's headquarters. Agents hauled away computer equipment and bankers boxes full of documents. Investigators have refused to provide information about the warrants, saying they are sealed.

The U.S. Attorney's Office in Indianapolis has not filed a response to the original motion to unseal. Timothy Morrison, the acting U.S. attorney for the Southern District of Indiana, would not comment today about what position his office will take.

Court papers filed by Morrison's office Nov. 24 allege Fair operated as a Ponzi scheme, using money from new investors to pay what it owed prior investors, thereby "lulling the earlier victims into believing that their money was being [handled] responsibly."

The raids occurred one month after IBJ published an investigative story that raised questions about whether Fair Finance had the financial wherewithal to repay Ohio investors who had purchased nearly $200 million in investment certificates.

The story reported that, since Durham bought the consumer-loan business in 2002, he had used it almost like a personal bank to fund a range of business interests, some of them unsuccessful. The story noted that he and related parties owe Fair more than $168 million.

In the amended motion to unseal, Karen Lefton, an attorney for Brouse McDowell in Akron, argued that keeping the records sealed violates the newspapers' common law right to access judicial records, as well as their First Amendment rights.

"It is highly unlikely the government would be able to meet its burden of showing that sealing is essential to preserving the integrity of its ongoing investigation," the motion says.

"In addition, all the principal parties - Mr. Durham, his companies' leaders, the prosecutor - already know the contents of those file cabinets and computers that were seized from Fair Finance. Indeed, it seems that by sealing the search warrant documents, that information is being withheld only from those for whom it is most important - the public and innocent investors who now must undertake recovery on their own."

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  1. I work with some older lawyers in the 70s, 80s, and they are sharp as tacks compared to the foggy minded, undisciplined, inexperienced, listless & aimless "youths" being churned out by the diploma mill law schools by the tens of thousands. A client is generally lucky to land a lawyer who has decided to stay in practice a long time. Young people shouldn't kid themselves. Experience is golden especially in something like law. When you start out as a new lawyer you are about as powerful as a babe in the cradle. Whereas the silver halo of age usually crowns someone who can strike like thunder.

  2. YES I WENT THROUGH THIS BEFORE IN A DIFFERENT SITUATION WITH MY YOUNGEST SON PEOPLE NEED TO LEAVE US ALONE WITH DCS IF WE ARE NOT HURTING OR NEGLECT OUR CHILDREN WHY ARE THEY EVEN CALLED OUT AND THE PEOPLE MAKING FALSE REPORTS NEED TO GO TO JAIL AND HAVE A CLASS D FELONY ON THERE RECORD TO SEE HOW IT FEELS. I WENT THREW ALOT WHEN HE WAS TAKEN WHAT ELSE DOES THESE SCHOOL WANT ME TO SERVE 25 YEARS TO LIFE ON LIES THERE TELLING OR EVEN LE SAME THING LIED TO THE COUNTY PROSECUTOR JUST SO I WOULD GET ARRESTED AND GET TIME HE THOUGHT AND IT TURNED OUT I DID WHAT I HAD TO DO NOT PROUD OF WHAT HAPPEN AND SHOULD KNOW ABOUT SEEKING MEDICAL ATTENTION FOR MY CHILD I AM DISABLED AND SICK OF GETTING TREATED BADLY HOW WOULD THEY LIKE IT IF I CALLED APS ON THEM FOR A CHANGE THEN THEY CAN COME AND ARREST THEM RIGHT OUT OF THE SCHOOL. NOW WE ARE HOMELESS AND THE CHILDREN ARE STAYING WITH A RELATIVE AND GUARDIAN AND THE SCHOOL WON'T LET THEM GO TO SCHOOL THERE BUT WANT THEM TO GO TO SCHOOL WHERE BULLYING IS ALLOWED REAL SMART THINKING ON A SCHOOL STAFF.

  3. Family court judges never fail to surprise me with their irrational thinking. First of all any man who abuses his wife is not fit to be a parent. A man who can't control his anger should not be allowed around his child unsupervised period. Just because he's never been convicted of abusing his child doesn't mean he won't and maybe he hasn't but a man that has such poor judgement and control is not fit to parent without oversight - only a moron would think otherwise. Secondly, why should the mother have to pay? He's the one who made the poor decisions to abuse and he should be the one to pay the price - monetarily and otherwise. Yes it's sad that the little girl may be deprived of her father, but really what kind of father is he - the one that abuses her mother the one that can't even step up and do what's necessary on his own instead the abused mother is to pay for him???? What is this Judge thinking? Another example of how this world rewards bad behavior and punishes those who do right. Way to go Judge - NOT.

  4. Right on. Legalize it. We can take billions away from the drug cartels and help reduce violence in central America and more unwanted illegal immigration all in one fell swoop. cut taxes on the savings from needless incarcerations. On and stop eroding our fourth amendment freedom or whatever's left of it.

  5. "...a switch from crop production to hog production "does not constitute a significant change."??? REALLY?!?! Any judge that cannot see a significant difference between a plant and an animal needs to find another line of work.

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