Indiana News

Former Employee Says Durham Lied to Investors

6/13/2012


Tim Durham (WIBC.com file photo)

One of Indianapolis businessman Tim Durham's former employees testified in his federal trial Wednesday.

Listen:

Former Fair Finance Assistant Manager Matthew Ogden told the prosecution that in 2009, Durham told advisors to tell investors that the company was expanding while it was actually experiencing a major cash flow crises. Ogden says he was in the presence of Durham partner James Cochran who actually told investors the company was doing fine. Ogden says they were also told to tell investors that their interest checks were either in the mail or delayed due to computer issues.

Ogden says Durham blamed the November 2009 raid of Fair Finance offices on people and an ex-girlfriend "out to get him." Ogden also says during 2009, he could see that more money was going out of the firm than coming in and investors were nervous about the state of the economy and had questions. Ogden says they were also told to blame delays in interest payments on new "accounting procedures."

Meantime, Ohio investor David Spector also testified. He told prosecutors he lost $200,000 in Fair Finance. Spector says he believes the operation was a Ponzi scheme as prosecutors are alleging. Durham and partners James Cochran and Rick Snow are charged with conspiracy, wire fraud and securities fraud.

Prosecutors say they bilked 5,000 people out of more than $200 million.

MORE FROM WIBC NEWS:
Ohio Man Says Durham Robbed Family (6-12-12)
Indianapolis Defense Attorney Weighs In On Durham Case (6-11-12)
Former Firm Owner's Accusations Lead Testimony in Tim Durham Trial (6-11-12)
Tim Durham Trial Getting Underway (6-11-12)
Jury Selected in Trial of Embattled Money Manager Tim Durham (6-8-12)
Judge Denies Motion for Dismissal in Durham Case (4-19-12)
Durham Attorney Downplaying New Charge (2-22-12)
Durham's Legal Team Wants Charges Dropped (1-6-12
Durham's Attorney Calls for Dismissal of Charges (12-21-11)
Indianapolis GOP to Turn Over Durham Donations (9-14-11)
Tim Durham Files Request to Return to Mansion (8-16-11)
Durham Co-Defendent Seeks Public Defender (7-14-11)
Bosma to Return Durham Contributions (4-30-11)
Durham Released From Halfway House (4-11-11)
June 2012 Trial Set for Durham (4-7-11)
Durham Taken Into Custody After Hearing (4-6-11)
State Senator to Return Durham's Contributions (3-22-11)
Republican Party Will Not Return Durham's Donations (3-17-11)
Geist Businessman Indicted (3-16-11)
Durham Linked to FBI "Cramming" Investigation (12-16-10)
Indy Businessman Faces Foreclosure on Mansion (9-17-10)
Durham Facing Additional Financial Trouble (4-29-10)
Lawsuit Filed Against Indianapolis Businessman (12-4-09)

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