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.

Wayside Furniture

Meaden & Moore

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

Massive pipeline planned to pump Ohio shale products to Texas
This needs stopped. Ohioans pay the price, putting up with pollution, leaks, explosions, and the top one percent profit from exporting fracked product to China.

National Weather Service confirms three tornado touchdowns yesterday
I was driving back from a party and was caught in the middle of a large thunderstorm. The hail and lightning were a whole light closer than usual, is something ...

Another Indians season opens with Chief Wahoo under scrutiny
The picture you have for Robert rocha is not him. He has long hair. No idea who that guy is in that picture

Portman predicts McDonald's confirmation, but says it won't be easy
I sent the following note to Senator Blumenthal after reading commentary from yesterday's hearing: Senator, You certainly have the right to ask Mr. McDonald que...

Seven minutes changed everything, but what changed Ashford Thompson?
He shot the guy four times in the head. I have never been that drunk or mad, and I have been through it. Shoot a guy once is bad, maybe a mistake, shoot a guy f...

First cricket farm in the U.S. opens in Youngstown
I am interested in cricket flour to replace soy flour in a low carbohydrate diet. As soon as you have cricket flour available for the average person, please le...

New process starts digesting sludge in Wooster
Awesome! When do our sewage rates decrease accordingly?

Akron's Chapel Hill Mall in foreclosure
Not a surprise. Between the shoplifting, gangs and violence that goes on up there it is no wonder that no one feels safe to shop at Chapel Hill. They have sca...

Ohio launches investigation into at least one Concept charter school
I worked at Noble Academy Cleveland as admin assistant and enrolment coordinator for 6 years, I know this is so valid and true and can provide staff names and p...

Copyright © 2014 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