Corporate & Securities Law

Fair Finance Agrees To Receivership

By Mark Maddox

Embattled businessman Tim Durham apparently will not oppose the appointment of an interim receiver for Fair Finance and its parent corporation, Fair Holdings. The story was first reported on Feb. 11 by the Akron Beacon Journal. The news comes one week after the law firms of Maddox Hargett & Caruso and David P. Meyer and Associates Co. filed paperwork asking a Summit County, Ohio, court to appoint a receiver for Fair Finance and Fair Holdings.

Attorneys for Fair Finance deny the company has been involved in any wrongdoing.

The offices of Fair Finance have remained closed since Nov. 24 when the FBI raided the company?s Akron headquarters and the offices of a related business in Indianapolis, Obsidian Enterprises. According to court records, federal investigators suspect that Fair Finance was being operated as a Ponzi scheme.

Meanwhile, a federal judge is weighing whether to unseal search-warrant documents related to the FBI?s November raids. On Feb. 11, during a court hearing in Youngstown, Ohio, a representative of the U.S. Attorney?s Office in Indianapolis argued that unsealing the search warrants could damage the federal government’s ongoing investigation.

Full post as published by Representing Investors on February 12, 2010 (boomark / email).