Durham Attorneys Deny Fraud, Ponzi Scheme

Business Will Have Temporary Receiver

Attorneys for embattled Indianapolis businessman Tim Durham are denying accusations of fraud by hundreds of investors.

In newly filed court documents, attorneys deny their client was involved in any kind of ponzi scheme, but they said he accepted investors' request for a temporary receiver of his businesses' assets, 6News' Rafael Sanchez reported.

Ohio-based Fair Financial was one of two businesses run by Durham and his business partner that were raided by the FBI in November, although no criminal charges have been filed in the case.

"Fair Financial, nor any of its officers, are liquidating or otherwise improperly dissipating assets or defrauding creditors," the attorneys' statement read.

But investors in Ohio worried about the whereabouts of nearly $200 million in investments are skeptical, along with local lawmakers.

"Prove it to me. Show me they haven't gambled away life earnings of the constituents in my district," said Rep. John Boccieri. "Open your doors, give them their money back and let them decide stay with them or not."

Durham's attorneys told the court that Fair Financial would be making payments to customers if not for the FBI raid, which made banks and other business partners cut ties with the company.

They also said that recent published reports that Durham was selling a yacht and a classic car were misleading.

Fair Financial has remained closed since November's raid.

More Information: Fair Finance Response