(INDIANAPOLIS, IN) - The federal government has filed court papers alleging 47-year-old Indianapolis businessman Timothy Durham operated a ponzi scheme.
Federal authorities are seeking forfeiture of his property, including his 30,000-square-foot Geist mansion, a home in Los Angeles and his 2008 Bugatti sports car.
The charges were filed the same day the FBI executed search warrants November 24th at Durham's principal office in downtown Indianapolis and at the Akron, Ohio offices of Fair Finance Company.
The U.S. Attorney's Office for the Southern District of Indiana Alleges Durham, his associates and his companies committed fraud by telling prospective buyers of fair finance investment certificates that the money would go toward purchasing low-risk consumer loans. Instead, the money allegedly went to a ponzi scheme, using money from new investors to pay what it owed prior investors.
An Indianapolis Business Journal story noted that Durham and related parties owe fair finance company more than $168 million.
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