The federal government withdrew its request to seize the assets of Indianapolis financier Tim Durham on Nov. 30. According to the Indianapolis Business Journal, the U.S. Attorney’s Office based its decision on assurances that Durham’s assets were not being dissipated. There’s no word on who provided those assurances.
The previous lawsuit had been filed Nov. 24, and alleged that Durham, his associates and his companies misled investors into buying investment certificates in which they believed their money would be invested in low-risk, high-yield short-term consumer debt.
“Instead, the money provided by victims of the scheme was used to make interest and redemption payments to earlier victims of the scheme, thereby lulling the earlier victims into believing that their money was being (invested) responsibly,” the complaint said.
On the same day the now-dismissed civil lawsuit was filed, the FBI raided two of Durham’s companies – Fair Finance Co. and Indianapolis-based Obsidian Enterprises.
The Akron Beacon Journal reported on Nov. 30 that the headquarters of Fair Finance remained closed and empty today as a steady stream of worried customers drove in to try to check on their investments.