Court docs reveal Durham's dealings

INDIANAPOLIS (WISH) - Tim Durham has a broad range of business and financial interests. That means many others could be in some way impacted by his business dealings.

A document filed by U.S. Attorney Timothy Morrison asks a judge to freeze the assets of Tim Durham . Morrison has since dropped the civil suit, but the investigation into Durham's dealings continues.

Morrison's complaint yields valuable clues about the possible direction of the investigation.

Durham controlled Playa Del Racing , an IndyCar team. According to Morrison's complaint, Durham may have used $804,000 of ill-gotten gains to support the team. That would mean some of the funding fueling his cars may have been laundered.

Personal finance expert Peter Dunn said, "A Ponzi scheme may have funded an IndyCar team and that's the sort of craziness that is now coming out in these court papers."

Dunn predicts potential far-reaching fallout from the financial dealings of Tim Durham. Keybank subsidiary, KeyBanc Capital Markets Incorporated , is also mentioned in court documents.

The U.S. attorney alleges Durham made 6,400 federal wire transfers using investors' money for his personal interests. According to court documents, he reinvested $495,000 of that money at McDonald Investments. McDonald investments, a subsidiary of KeyBanc, became known as KeyBanc Capital Markets in 2007.

Dunn said any firm that invests laundered money could still be held responsible, even if the broker didn't know the money was tainted.

"It is a financial company's fiduciary responsibility to help sniff out money laundering," said Dunn.

Dunn stresses that neither KeyBank nor its subsidiary has been accused of any wrongdoing.

KeyBank leaders are silent on the matter.

"We cannot comment on matters that are under investigation," said Dan Davis, Vice-President and Public Relations Manager of the Great Lakes Region.