Lacking confidence that government prosecutors will take action to recover their money for them, investors in Fair Finance Co. filed another lawsuit in a Wayne County, Ohio state court today. The lawsuit seeks to recover $2.19 million invested in Fair Finance in the form of certificates of investment by 36 investors. The suit complains that investors are unable to redeem investments that have matured or receive interest payments from the company since it closed its doors on November 23, 2009 after federal agents executed a search warrant on the company's Akron, Ohio office and accused the company's owner, Tim Durham, of running a Ponzi scheme. The suit accuses Fair Finance of violating Ohio's securities law and engaging in fraud by making untrue statements to investors.
“As of today, we are confident of the allegations made in the Complaint, although we do not have enough information to make any prediction on the availability of funds to pay these claims," said J. Douglas Drushal, attorney for the investors. "Things are clearly amiss within Fair Finance and the misdeeds of its management have already caused considerable damage to its Certificate holders," Drushal continued. "In many cases, these investments represent the life savings of people who cannot afford to lose this money." "In other cases, the investments were college savings funds for children, or funds held for support in retirement." "If Fair Finance cannot make good on its obligations, it will have a devastating impact on very many lives." "We intend to leave no stone unturned in pursuing recovery for these plaintiffs." We also anticipate additional plaintiffs joining in the lawsuit in the near future,” Drushal concluded.
A class action suit was filed by attorneys in Indianapolis representing Ohio investors a couple of week ago in the federal district court in Ohio. “This case differs from the class action lawsuit filed recently in Summit County, in that our Complaint is just filed on behalf of the individual investors named as plaintiffs," an attorney for the investors stated. "By pursuing individual claims, our plaintiffs will maintain complete control over the resolution of their specific situation." "Being a local law firm, we are also able to be in direct contact with our clients in handling their individual questions."
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