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Economy and Business


Fair Finance trial is nearing the end
Defense is expected to make its case today
by WKSU's M.L. SCHULTZE


Web Editor
M.L. Schultze
 
Tim Durham's portrait, one of the many signs of the good life while he ran Fair Finance.
In The Region:
Defense attorneys are expected to make their case today in the federal trial in Indianapolis of three men accused of looting a small Akron loan company of more than $200 million. WKSU’s M.L. Schultze has more.
SCHULTZE Fair Finance trial nears the end

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Prosecutors put the last witness in their case on the stand Monday – the trustee who took over Fair Finance after it was forced into bankruptcy. And despite more than a year of pursuing everybody from politicians to Playboy bunnies, Brian Bash testified that  all he’s been able to recover is just $5.6 million.

That's according to the Indianapolis Business Journal, which first raised questions about  problems at Fair Finance before it collapsed in late 2009.
By that time, thousands of small investors had put $215 million into Fair Finance, whose reputation -- built over decades -- was as a reliable company that paid modestly higher interest rates in exchange for investments that weren’t insured.

Bash wrapped up the case against Tim Durham and Durham’s co-defendants Jim Cochran and Rick Snow by saying that most the money was sucked into other companies run by the three, and that he’s recovered just a tiny fraction of that. But he did acknowledge on cross examination that he still hopes to collect more.

The attorneys for Durham and his co-defendants are expected to put their first witness on the stand this morning and finish today. They maintain that the bad economy and bad judgment sank Fair Finance – not criminal fraud.  

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