Ind. businessman indicted, faces SEC fraud charges

INDIANAPOLIS - An Indianapolis businessman and top Republican donor has been indicted on charges stemming from an investigation into whether he operated a Ponzi scheme to defraud investors of hundreds of millions of dollars.

FBI spokeswoman Laura Eimiller says Timothy Durham was arrested at his home in West Hollywood, Calif., without incident Wednesday morning.

U.S. Attorney spokeswoman Mary Bippus says a press conference is scheduled Wednesday in Indianapolis.

The Indianapolis Star reports Durham and two others have been indicted on 12 felony counts including wire fraud and securities fraud.

A Securities and Exchange Commission complaint filed Wednesday accuses all three of defrauding about 5,000 investors of about $230 million through Durham's Akron, Ohio-based Fair Finance Co.

The FBI raided Fair Finance and the offices of Durham's Indianapolis-based Obsidian Enterprises in November 2009.

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