Lawsuit Filed Against Indianapolis Businessman
A lawsuit seeks to rescind $200 million in investor purchases of Fair Finance Co. of Akron, Ohio and to hit Indianapolis businessman Tim Durham and other company insiders with punitive damages.
The Indianapolis Business Journal reports that the lawsuit was filed Friday in Summit County, Ohio. It seeks class-action status.
The Journal says it appears to be the first investor lawsuit filed since the U.S. Attorney's Office alleged in court papers late week that the business was operating as a Ponzi scheme, using the influx of money from new investors to pay off existing ones. Durham is a co-owner of Fair Financial.
The FBI on Nov. 24 seized records at Durham's Indianapolis office and at Fair's headquarters.
Durham's attorney has said his client believes he has done nothing wrong.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.