Political Fundraiser Indicted in Alleged Ponzi Scheme
A prominent political fundraiser has been indicted by a federal grand jury
for his alleged participation in a
Ponzi scheme involving hundreds of millions of dollars. Forty-eight-year-old Timothy
Durham, was charged on Wednesday, March 16, 2011, for duping more than
5,000 unsuspecting investors into supporting his lavish lifestyle and
supporting political candidates.
Mr. Durham was arrested at his West Hollywood home. He faces 12 counts, including charges of securities and wire fraud.
The indictment states that Mr. Durham defrauded more than 5,000 investors out of close to $200 million between 2002 and 2009. He has been accused of taking money from investors through his company, the Fair Finance Company, and using it to make loans to himself, his business and to make payments to earlier investors.
Mr. Durham allegedly loaned himself approximately $54 million to support his extravagant lifestyle, which includes a 45-car garage home in Indianapolis and a four-bedroom yacht in Miami. It also appears that he may have made large political donations, including more than $800,000 to the Republican Party and almost $200,000 to Governor Mitch Daniels.