SC Design Inc., an Indianapolis, Indiana, interior design firm filed for Chapter 7 bankruptcy protection on November 26, 2012. In the petition, SC Designs operator Shannon Connor, lists debts of $1.5 million and assets of $400. Fair Finance is an Akron, Ohio based firm that was co-owned by Tim Durham.
Nearly all of the $1.5 million in debt, $1.4 million, is listed as a claim filed by SC Design by Fair Finance Co. trustee Brian Bash.
Trustee Bash alleges that Fair Finance was insolvent when it began transferring assets out of Fair, the transfers were not legitimate, and has filed many suits since early 2010 to recover the funds.
Tim Durham was convicted for 8 felony charges and faces 225 years in prison.
Prosecutors allege that 5,000 Ohio residents who purchased more than $200 million of Fair Finance unsecured investment certificates have recovered only $5.6 million thus far from Trustee Bash’s efforts.
Source: The Indianapolis Business Journal, “Local designer’s bankruptcy tied to Fair Finance,” Scott Olson, Nov. 28, 2012.