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Trio who fired accountants, fleeced investors after Fair Financial takeover get long sentences for fraud

Dec 03 2012 Stuart Gittleman, Compliance Complete

Three men who were convicted of defrauding investors in a formerly profitable consumer-finance company after firing the company's independent accountants were sentenced Friday to some of the longest prison terms for financial-crisis related crimes. Timothy S. Durham, James F. Cochran and Rick D. Snow, respectively the former chief executive, chairman and chief financial officer of Fair Financial Company, in June were convicted after an eight-day jury trial of securities fraud, wire fraud and conspiracy. Indianapolis federal judge Jane Magnus-Stinson sentenced Durham to 50 years in federal prison, Cochran to 25 years and Snow to a 10-year term, and ordered the men to pay $208 million in restitution. The sentences come on the heels of other major financal-crime cases. Lee Farkas, the former chairman of Taylor, Bean & Whitaker Mortgage Corporation, was sentenced last year to 30 years in prison after being convicted of masterminding a $2.9 billion fraud scheme before the private company

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