FBI Raids Offices Of Indy Businessman

INDIANAPOLIS -- The FBI on Tuesday raided the offices of two companies led by a high-powered Indianapolis businessman.

Agents carried documents out of Tim Durham's Obsidian Enterprises Inc., a leveraged-buyout firm, located on the top floor of the Chase Tower in downtown Indianapolis just after 3 p.m.

Images: Inside Durham's House
More: Have you done business with Tim Durham or his companies? Send Us An E-mail

The FBI also executed a search warrant at the 47-year-old's Akron, Ohio-based Fair Finance Co. Michael S. Welch, FBI special agent in charge in Indianapolis, confirmed that agents were carrying out searches of the offices, but said that the warrants are sealed and that the FBI would not provide any specifics.

6News' Rick Hightower went to Durham's home near Geist Reservoir Tuesday night, and a man who came to the gate and said he was Durham's publicist said that his client was in Los Angeles.

The Indianapolis Business Journal in a report last month questioned whether Fair Finance had the financial ability to repay Ohio investors who bought nearly $200 million in investment certificates.

"What I wrote about really dealt with Fair Finance raises money from everyday people to fund its business, so the gist of what I was focusing on was whether those investors who've put in something like $200 million, whether they're going to get the money they're owed," said IBJ Managing Editor Greg Andrews.

The FBI action occurred the same day a 16-month-old securities registration that permitted Fair to sell investment certificates expired, the IBJ reported.

Durham is well-connected with several Indianapolis area movers and shakers, including Marion County Prosecutor Carl Brizzi, who issued the following statement Wednesday:

"Tim is a friend, and I’m sorry to hear about the recent developments," he said. "I have no knowledge of the allegations, and it would be inappropriate for me to comment."

In 2007, 6News toured Durham's 30,000-square-foot-home near Geist Reservoir. The seven-bedroom mansion includes a private apartment, where the late Anna Nicole Smith once stayed during the Indianapolis 500, and a two-story garage housing Durham's extensive classic car collection.

"He owns, yachts, planes, lots of cars," Andrews said. "At one point, he owned 70 cars, so he kind of flaunted his wealth. At one point, he said he wanted to be as rich as Warren Buffett. That was kind of a famous phrase of his."

Welch asked anyone who had dealings with Fair Financial Services to call 1-800-CALL-FBI.