Judge orders Durham to spend week in halfway house

INDIANAPOLIS (WISH) - An indicted Indianapolis businessman used to living in lavish estates will spend the next seven days in a Volunteers of America halfway house on North Capitol Avenue.

24-Hour News 8 has learned Durham will only be able to leave for work and pre-arranged appointments, such as meetings with lawyers.

The mandated stay comes after federal Magistrate Judge Kennard Foster was displeased with Durham's financial disclosure at a hearing Wednesday. Foster demanded a more complete and accurate discloure in the coming days.

Until then, Durham will be housed with at least two dozen convicted sex offenders at the halfway house. Describing the unit where Durham will be living, one of the residents said: "It's a cross between a homeless shelter and a dorm room."

When 24-Hour News 8’s Brad Edwards asked Durham if he could handle life at a halfway house, the embattled businessman, dressed in a well-appointed suit and his usual Ray-Ban sunglasses and flanked by lawyers, made no comment.

Durham is accused of orchestrating a Ponzi scheme with Fair Finance, funneling money to support his lavish lifestyle. Investigators said Durham, along with James Cochran and Rick Snow, defrauded about 5,000 investors out of $200 million. Each face 12 federal charges - 11 of them felonies with possible 20-year sentences.

Durham was arrested March 16 in Los Angeles, where a federal judge allowed a $1 million security bond, which was secured by his ex-wife and her father.

Check back with WISHTV.com for updates as the court proceedings continue.