An Indiana financier and former chief executive of National …
Updated: Friday, 18 Mar 2011, 8:47 PM EDT
Published : Friday, 18 Mar 2011, 6:09 PM EDT
INDIANAPOLIS (WISH) - Tim Durham gave out more than $800,000 in political contributions before his business empire collapsed. Most of that money went to Republicans. Democrats now say it should be returned. The bankruptcy trustee for Fair Finance, the company Durham is accused of looting, also sent letters demanding that the money be sent to him.
It means Tim Durham has gone from contributor to liability for a number of politicians. Durham was indicted on felony fraud charges this week.
Indiana Gov. Mitch Daniels, who received more than $195,000 from Durham, said months ago that the money had been spent. When asked if the indictment changed his position the governor said, "No, money's gone."
House Speaker Brian Bosma (R-Indianapolis) gives a similar answer. Committees established by the House Republicans received $60,000.
"That money was spent a number of elections ago, (it would) be difficult to trace," said Bosma.
It's a response that draws criticism.
"The analogy there is that if your friends rob a bank and give you money and you just spend it, it's OK," says state Democratic Chairman Dan Parker. "You’ve got to give the money back, doesn't matter who you are."
State Senator Mike Delph wants to give back the $10,000 he received.
"That's going to be up to the conscience of each individual person from the governor on down," says Delph (R-Carmel,) "but I don't think it's right to just say that money's already been spent."
Delph is negotiating with the bankruptcy trustee. He wants to make sure the money goes to victims.
And Attorney General Greg Zoeller has put $11,000 in Durham donations in a segregated account. He's waiting to make his next move.
"If there's a conviction and they set up a restitution account," he says, "that's where I would put the money."
Zoeller says that his is a decision based on political, not legal, considerations.
Durham did give to Democrats, including the Democratic National Committee and former Congressman Baron Hill. State Democratic Chairman Dan Parker says all of that money will go to the bankruptcy trustee.
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