INDIANAPOLIS — Fraud victims of a former Indianapolis businessman will receive an additional $5 million payout, amounting to less than 3 percent of their $208 million in losses.
The money for the victims of Tim Durham’s Fair Finance Co. Ponzi scheme comes from lawsuits filed by Trustee Brian Bash, the Indianapolis Business Journal reported. Bash’s payout boosts investors’ recovery to $23 million.
“The trustee and his counsel have received numerous phone calls from creditors explaining the hardship caused by losing their money to Fair Finance,” the court filing states. “Many creditors are elderly and need money for medical and living expenses. Many other creditors invested their retirement or life savings in Fair Finance.”
Many of the lawsuits were filed against friends and business associates of Durham, who received questionable transfers.
Bash said many of Durham’s associates have “squandered” the money, leaving little or nothing to recover.
“Getting a judgment is one thing; collecting is another,” Bash has said.
The only prior distribution was $18 million in 2015.
Durham was sentenced to 50 years in federal prison after a 2012 conviction of securities fraud, conspiracy and wire fraud for operating a Ponzi scheme that defrauded thousands of investors in his Ohio-based company, Fair Finance.
Information from: Indianapolis Business Journal, http://www.ibj.com