Indianapolis Business Journal
Convicted Fair Finance executives Tim Durham and James Cochran will be held in a federal prison until sentencing under an order issued Monday by U.S. District Judge Jane E. Magnus-Stinson.
The judge agreed to release accomplice Rick Snow on home detention including GPS monitoring, noting his comparatively smaller role in the fraud and the young age of his children.
Magnus-Stinson did not set a sentencing date.
The defendants were convicted of operating Akron-based Fair Finance Co. as a Ponzi scheme that swindled 5,000 investors out of more than $200 million. A jury last week found Durham guilty of 12 fraud-related charges, Cochran of eight and Snow of five.
Magnus-Stinson issued her ruling on whether the defendants would remain in jail after 90 minutes of testimony, including from Durham’s son and Snow’s wife, both of whom said their loved ones have expressed no desire to flee. Defense attorneys argued their clients should be released under home detention pending a sentencing hearing.
The court’s decision to jail Durham and Cochran is based on the fear some of the “missing money” from Fair Finance could help bankroll an escape, said Magnus-Stinson, who repeatedly referenced the infamous Ponzi scheme operated by Bernie Madoff in a stern ruling.
Magnus-Stinson said the jury’s verdict suggests Durham has “no respect for other people’s money.”
Durham and Cochran likely will be transferred to a federal correctional facility in Kentucky. Snow was released following the hearing and will be confined to his home, which he shares with his wife of 22 years and teenage children (who are 14 and 16).
The next step is a sentencing hearing at which the defendants will be allowed to call character witnesses to appeal to Magnus-Stinson, who has wide discretion on sentencing.