Step Aside Pay-to-Play, Timothy Durham Has Redefined Sleaze in Private Equity
Sure, David Leuschen had cattle castration, and the Logliscis had "Chooch," but when it comes to sources of schadenfreude, Tim Durham truly tops them all. In case you missed the Thanksgiving-time news of the FBI raiding Durham's Indiana buyout shop, Obsidian Enterprises, here's a quick rundown: Durham's other firm, an Ohio firm called Fair Finance Services, is accused of running a Ponzi scheme and acting as Durham's "personal bank" for seven years. The firm sold certificates intended for investments in small businesses, and while it used some of the money to invest in Obsidian companies, it passed the rest back to earlier investors, Ponzi-style, according to a civil complaint. Even worse, it created a vehicle to make personal loans to Durham and his partner. So Durham's offices were raided, and he's cooperating, claiming he did nothing wrong. But once you read about Durham's amazingly classy antics you can't be that surprised the guy tried to skirt the rules.
