News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

Lehmans

Wayside Furniture

Akron General


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Economy and Business


Bankruptcy trustee's suit calls Akron-based Fair Finance a "cash cow" for insiders
Files to try to get back millions in insider loan; hints at more legal action to come
by WKSU's M.L. SCHULTZE


Web Editor
M.L. Schultze
 
In The Region:
A bankruptcy trustee has now filed a $19 million lawsuit against one of the big players in the Akron-based Fair Finance company.

 

Who ran what
According to the bankruptcy filings, here is the structure of Fair Finance and the companies created to buy it.
Timothy Durham and James Cochran own 50 percent each of the Indiana company, DCI, and of Fair Holdings and Fair Finance.
          DCI owns 100 percent of Fair Holdings.
          Fair Holdings owns 100 percent of Fair Finance.
The lawsuit claims, “Fair Holdings and DCI conducted no business other than to draw money out of the Debtor through purported ‘loans.’” 
 *************
Here are excerpts from the U.S. Bankruptcy Court trustee’s claim against  Daniel Laikin. The trustee represents Fair Finance, which is called “the Debtor.”
 “The Trustee shortly will file a complaint seeking to substantively consolidate the assets of Debtor’s parent, Fair Holdings, … and its parent, DCI, with the debtor’s estate on grounds that the Debtor, Fair Holdings and DCI are a single, indistinguishable entity. The Trustee nonetheless files this action … because the trustee believes time is of the essence due to the probability that Laikin will attempt to dispose of the real property securing his obligations to the Debtor in light of his problems with the federal government, and because the Trustee is informed that Laikin has listed the real property for sale.”
 “… At the time of the purchase in 2002, the Debtor was a strong, viable , reputable company. Bu 2009, the Debtor had been utterly looted through insider loans, resulting in the shut-down of the Debtor’s business after the FBI raid. … Fair Holdings and DCI conducted no business other than to draw money out of the Debtor through purported ‘loans.’ … The current balance due the Debtor on direct loans to Fair Holdings is at least $76 million. The current balance due to Debtor on direct loans to DCI is $66 million.”
 “The money siphoned from the debtor, through Fair Holdings and DCI, was then transferred out in more purported ‘loans’ to others, again mainly insiders, affiliates and related entities, including personal loans to owners Durham and Cochran and Defendant Laikin.”
“For all real and practical purposes, the operations and affairs of the Debtor, Fair Holdings and DCI are so entangled that they are one and the same company. Fair Holdings and DCI essentially used the Debtor as a cash cow to personally enrich the owners and other insiders and affiliates.”
Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook





Stories with Recent Comments

Ohio to appeal ruling keeping Akron's red light cameras in place
I don't understand what all the fuss is about. If you don't like tickets drive the speed limit and stop at red lights. It's really all up to you.

Who's on public assistance in Ohio?
legalize marijuana get over it,,, its here its been the main drug test scare of a lifetime. u got people that get drunk every night and work u got peoples on ...

Letters from a lost friend: A Beachwood survivor's Holocaust remembrance
What a great story -- and how important it was for both Marlene and her mother to tell it! Thank you.

Ohio lawmaker calls for an East Cleveland bailout
Instead of blaming Kasich and the Republicans for all of East Cleveland's fiscal woes, take a look at the facts. Some political entities in Ohio are too small ...

Legalized marijuana is a boon for a Cleveland-area grow light maker
Shouldn't he be in jail for paraphernalia? He knows he is selling for marijuana production.

Akron city council to vote on resolution for hiring ex-offenders
Great as a taxpayer I paid for the police to catch them, the free lawyer, the jail to house them , the food their kids eat the medical for them and all its goin...

5 of 8 rule headed for a vote
this is just another way for kasich to pass the buck and claim that it gives the local districts control. Few schools have enough money because of his cuts. T...

A passionate debate about parole in Ohio
I was heartened to hear that the legislators will consider ANY legislation to break the chains the parole board has put on these old law offenders who have serv...

Bill would allow Ohio religious leaders to refuse to do gay marriages
This is just a lot of political posturing. The free exercise clause of the 1st Amendment already protects clergy from being forced by civil authorities to perfo...

Copyright © 2015 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University