Government, defense lay out Durham case

NOBLESVILLE, Ind. (WISH) - Battle lines are drawn in the federal fraud case of Indianapolis businessman Tim Durham. Opening statements and testimony on this first day of the trial set up how the government will attack and the defense will respond.

It was an early start Monday morning for the three defendants, Tim Durham, John Cochran and Rick Snow. As he walked into the federal court building in downtown Indianapolis, Durham said he felt good and was anxious to start.

The government in its opening statement said it will prove the defendants are guilty of a massive financial fraud, that the defendants told lie after lie after lie and that they spent years squandering investors money on themselves.

But the defense said there was panic, fear, desperation and bad decisions, but not fraud.

The first witness was Daniel Fair, who sold Fair Finance to Durham. It is Fair Finance that is alleged to be the piggy bank that funded the defendant's lavish lifestyle while leaving 5,000 investors out more than $200 million.

Fair testified that the defendants destroyed Fair Finance and testified that the defendants, "screwed the company right into the ground."

But in cross-examination Fair admitted the circular handed out to investors indicated the changes in the company made by Durham.

Also on the stand on the first day was the former controller of Fair Finance, Doug Derose. He testified that Durham insisted he send thousands of dollars to Obsidian, the company that Durham used to control his financial empire, even though Fair needed the money itself.

Another former Obsidian vice president testified that as early as 2006, he feared Obsidian would not survive.

Jurors were selected on Friday. It’s composed of nine men and seven women.

The trial is expected to last three weeks or more.