Feds reveal incriminating Durham wiretaps

INDIANAPOLIS (WISH) - Ahead of a federal trial scheduled for June 8, new documents were just released in the case against financier Tim Durham. The papers detail evidence obtained from wiretaps in 2009.

Durham is the Indiana businessman accused of stealing more than $200 million from thousands of clients.

He and two business associates, James Cochran and Rick Snow, are facing 12 federal charges, including wire and securities fraud.

The government plans to call more than a dozen witnesses and introduce wiretaps in the trial, scheduled to begin June 8.

'That's how we'll explain it'

In one of those wiretaps, from a call between Durham and Cochran in 2009, Cochran says: "We can tell them [investors] we didn't know that we were supposed to pay it, we're supposed to put everything on hold. Show us when you're done."

Durham responds: "Yeah, we thought, yeah, just say it was a mistake, we told our office to put everything on hold until the authorization, and they thought that meant put everything on hold."

Cochran: "Yeah, I like that."

Durham: "So, just a miscommunication. That's how we'll explain it."

Cochran: "Good."

Avoiding investors

In another wiretapped conversation from November 9, 2009, prosecutors say Durham and Cochran agreed to close their offices on Veteran's Day to conceal the fact that they didn't have enough money to pay investors.

"Anyway, we're going to close on Wednesday. It's Veteran's Day. The banks are going to be closed," said Cochran.

“Perfect," Durham responded.

"So we're gonna buy a day,” Cochran continued. “And I told him, so I call him back and said hey [Employee 2], make sure you don't tell customers in advance."

"Why?" Durham asked.

"He said ‘cause they will run in on Tuesday," Cochran responded.

"Oh yeah,” said Durham. “Good story."

"It's not a story,” Cochran said. “Put the sign up Tuesday night, 6 o'clock when you leave, shut the door and go home. Closed Veteran's Day. Oh ok. God you have to think...Great great great, that's a good idea. I said what? Same old story, you know. Can't you guys think of (expletive) anything?"

Lying to investors

In another exchange from November 19, 2009, prosecutors say a lie was directed toward investors.

"We'll just tell him [an investor] it's [a redemption] being processed," Cochran said to Durham.

"Well your [sic] there,” Durham responded. “Get with [Executive 1] on it."

"Yeah," Cochran acknowledged.

"Um, because, you know I..I'm not gonna make that call, but if you can push anybody, push them, you know, use the same reason you used yesterday with the other guy you know,” Durham said. “But don't use that explanation too often because it's not really true."

"I know," Cochran again acknowledged.

"Use the same explanation but on a limited basis," Durham said.

Earlier this year, Durham’s attorneys tried to get the case dismissed, arguing his phones were illegally wiretapped. But a federal judge disagreed.