The Securities and Exchange Commission is investigating a Dallas-based company in connection with the ongoing federal probe into Akron-based Fair Finance Co.
The company, CLST Holdings Inc., is also run by Indiana businessman Tim Durham, co-owner of Fair Finance.
The company is described as the former CellStar Corp. and says for most of 2008, it had ''no significant operations'' with the majority of efforts associated with winding down remaining entities and other activities. The company said it is in the business of buying consumer receivables and as of the end of February had two permanent employees and one temporary employee.
CLST disclosed in an SEC filing this morning that it received a subpoena on Nov. 24 seeking ''a variety of documents'' related to transactions with Fair Finance. Durham is named as the chairman of CLST.
The subpoena is dated the same day that the FBI raided the Akron offices of Fair Finance and related offices in Indiana. The U.S. Attorney for the southern district in Indiana has alleged in court documents that Fair Finance is a Ponzi scheme that has defrauded Ohio investors for years.
''Each of our directors, Timothy S. Durham, Robert Kaiser, and David Tornek have also received a subpoena from the SEC with the subject notation 'In Re Fair Finance.' Mr. Kaiser is also our Chief Executive Officer,'' the SEC filing reads. ''The subpoena requires us to produce a variety of documents relating to our portfolio transactions, including transactions with Fair, and also seeks documents relating to several individuals, including our directors, Mr. Durham, Robert Kaiser, and David Tornek.''
The filing said the company and directors ''expect to cooperate with the SEC in their investigation. We are currently unable to predict what the outcome of the investigation will be.''
The SEC subpoena asks for the officers to give testimony and demands voluminous amounts of information, including:
• ''All e-mail, including attachments, instant messages and BlackBerry PIN messages sent and received by you, or anyone currently or formerly employed by you.''
• ''All personal and business contact lists, including, but not limited to, address books, rolodexes, and e-mail contact lists maintained or organized by, or for, you, whether in paper or electronic form.''
• ''All business plans, financial reports, forecast reports, revenue reports, marketing reports, financial projections, sales projections, cash flow analyses and other financial forecasts prepared by, or on behalf of, you. This production shall include, without limitation, all preliminary data and source material which were in any way utilized in the preparation of any responsive document.''
• Numerous documents related to financial transactions involving the company, director and affiliates.
Jim Mackinnon can be reached at 330-996-3544 or email@example.com.