Judge approves payout in financial services company's bankruptcy
An Akron, Ohio, bankruptcy judge recently approved the $1.7 million payout in professional legal expenses and fees in the case concerning a financial services company.
An Akron, Ohio, bankruptcy judge recently approved the $1.7 million payout in professional legal expenses and fees in the case concerning a financial services company.
According to Ohio news provider the Beacon Journal, Fair Finance, co-owned by Timothy Durham and James Cochran, are still awaiting trial in Indiana on federal charges, after allegedly operating their company as a Ponzi scheme, but the judge-approved payout is a noteworthy advancement in the duo's bankruptcy case.
Brian Bash, the trustee overseeing the case, told the newspaper there could be as much as $90 million in recoverable claims with the bulk going to Fair Finance's more than 5,000 creditors.
“I don’t think anybody involved in this case disputes money deposited by certificate holders went hither and yon,” said Chief Judge Marilyn Shea-Stonum. “The challenge for the trustee is to find where that hither and yon is. . . . And it’s not an easy analysis.”
Durham and Cochran were forced into Chapter 7 bankruptcy in February 2010 after raids by the FBI resulted in the business shutting down the prior November. Fair Finance's creditors forced the company into bankruptcy on February 8, according to the Indianapolis Business Journal.
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