INDIANAPOLIS (WISH) - The FBI raided the offices of two companies owned by well-knownIndiana executive Tim Durham Tuesday afternoon. The agents servedtwo warrants simultaneously, one at Obsidian Enterprises of Indiana , located onthe top floor of the Chase Tower in downtown Indianapolis, and oneat the headquarters of Fair Financial Services in Akron, Ohio.
24-Hour News 8 went inside the Chase Tower to one of the officesin question and witnessed dozens of boxes filled with paperwork andan FBI agent standing guard.
Durham, the chairman and CEO of Obsidian, owns or controls atleast 15 businesses around the country. An Indianapolis Business Journal investigationfound Durham was using the Ohio business like a personal bank.
IBJ found Fair Financial raised $200,000,000 by selling riskyinvestments.
"A lot of that money has gone to Tim Durham and his associatesin the form of insider loans," said IBJ investigative reporter GregAndrews.
Andrews said Durham and his colleagues borrowed $168,000,000from Fair Financial.
"The concern is there isn't going to be money to repay everydayinvestors," said Andrews.
Andrews believes that could be cause for an FBIinvestigation.
Hours after the FBI first raided Durham's office, agents hauledout hundreds of boxes of documents.
The FBI refuses to talk about the raid because the warrants aresealed. They also won't say when they started investigatingDurham's financial holdings.
"Typically, in investor cases, they're making sure all therepresentations to investors were accurate," said Andrews. "How wastheir money supposed to be used and was it actually used thatway."
The FBI won't say whether Durham and any of his associates arebeing questioned.
Obsidian's Web site says it invests in small and mid capcompanies in basic industries like manufacturing andtransportation. Fair Financial’s Web site says it helpsbusiness owners find the money they need to succeed.
24-Hour News 8 tried calling both businesses and the line wentstraight to voicemail.
Tim Durham is a native Hoosier, born and raised in Seymour,Indiana. He received his undergraduate degree from IndianaUniversity 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 haveconcerns about their money, then it is in their best interests tocall.
We’d also like to hear from you. Feel free to email firstname.lastname@example.org with your contactinformation or call our newsroom at 956-8580.
9 A.M. UPDATE: Indiana State Police responded to 54 crashes between 6 p.m. Thursday and 8 a.m. Monday in Marion, Hancock, Shelby, Boone, Johnson, Hendricks and Hamilton counties. Of those, eight crashes involved injuries, but no one was …
The Greene County Sheriff's Department says the state Department of Transportation plow truck went off Indiana 45 and flipped onto its passenger side in a crash early Friday.
State police say a southern Indiana man has been arrested after a six-hour standoff that began when he fired several shots at family members.