Durham and two associates were accused of bilking more than 5,100 mostly small bluecollar investors in Fair Financial from the time he bought the business in 2002 until its collapse in November 2009.
"With this decision, I hope that those victims can now begin the long, difficult process of finding peace, and faith, and trust, once more," US Attorney Joseph Hogsett said in a statement after the sentencing in Indianapolis federal court. Durham was indicted with two other co-defendants in March 2011 on multiple counts of financial fraud in connection with the collapse of Fair Financial.
Co-defendants James F. Cochran and Rick D. Snow were also convicted and were sentenced on Friday by Judge Jane Magnus-Stinson. Cochran, 57, who purchased the business with Durham, was sentenced to 25 years in prison. Snow, 49, who was chief financial officer, was sentenced to 10 years in prison.
"Unable to succeed legitimately as a businessman, Durham robbed thousands of investors to finance the trappings of a multi-millionaire lifestyle, complete with exotic cars, planes, mansions and assorted businesses," prosecutors said in a pre-sentencing report.
Fair Financial's investor money had for decades been used successfully to buy short-term receivables, and was diverted by Durham and Cochran into failing businesses, startup companies, and lavish offices and lifestyles, prosecutors said in a court filing ahead of the sentencing.
The money went to a car magazine, restaurants, a surgery center, trailer manufacturer, internet companies, a race car team, a replica vintage car manufacturer and other businesses, according to court records. "The emails and wiretaps introduced at trial show a brazen disregard - indeed contempt - for the largely working class people that made up the majority of Fair's investors," prosecutors said in sentencing documents.