FBI raids businesses of prominent Indy exec

INDIANAPOLIS (WISH) - The FBI raided the offices of two companies owned by well-known Indiana executive Tim Durham Tuesday afternoon. The agents served two warrants simultaneously, one at Obsidian Enterprises of Indiana , located on the top floor of the Chase Tower in downtown Indianapolis, and one at the headquarters of Fair Financial Services in Akron, Ohio.

24-Hour News 8 went inside the Chase Tower to one of the offices in question and witnessed dozens of boxes filled with paperwork and an FBI agent standing guard.

Durham, the chairman and CEO of Obsidian, owns or controls at least 15 businesses around the country. An Indianapolis Business Journal investigation found Durham was using the Ohio business like a personal bank.

IBJ found Fair Financial raised $200,000,000 by selling risky investments.

"A lot of that money has gone to Tim Durham and his associates in the form of insider loans," said IBJ investigative reporter Greg Andrews.

Andrews said Durham and his colleagues borrowed $168,000,000 from Fair Financial.

"The concern is there isn't going to be money to repay everyday investors," said Andrews.

Andrews believes that could be cause for an FBI investigation.

Hours after the FBI first raided Durham's office, agents hauled out hundreds of boxes of documents.

The FBI refuses to talk about the raid because the warrants are sealed. They also won't say when they started investigating Durham's financial holdings.

"Typically, in investor cases, they're making sure all the representations to investors were accurate," said Andrews. "How was their money supposed to be used and was it actually used that way."

The FBI won't say whether Durham and any of his associates are being questioned.

Obsidian's Web site says it invests in small and mid cap companies in basic industries like manufacturing and transportation. Fair Financial’s Web site says it helps business owners find the money they need to succeed.

24-Hour News 8 tried calling both businesses and the line went straight to voicemail.

Tim Durham is a native Hoosier, born and raised in Seymour, Indiana. He received his undergraduate degree from Indiana University and owns a home in Fortville.

24-Hour News 8 has profiled the personal and professional sides of Durham in past stories. Click on the links in the left margin to view the stories.

The FBI said if you have conducted business with either company, please call 1-800-CALL-FBI.

They said if people associated with those companies have concerns about their money, then it is in their best interests to call.

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