The mother of convicted Fair Finance Co. scamster Timothy Durham will pay $500,000 to the Akron company’s bankruptcy estate to settle a lawsuit.

Mitza Durham has agreed to the settlement, according to papers filed Monday in U.S. Bankruptcy Court in Akron.

Fair Finance Co. trustee Brian Bash alleged in a lawsuit filed in 2012 that Mitza Durham received more than $828,521 in “fraudulent transfers” from her son between 2006 and 2009 that needed to be repaid to the company estate.

The agreement filed Monday calls for Mitza Durham to also pay interest on the $500,000 settlement.

Timothy Durham in 2012 was given a 50-year prison term for masterminding the Ponzi scheme that bilked more than $200 million from about 5,300 Ohio residents who bought Fair Finance’s investment certificates. He and a business partner purchased the longtime financial services company in 2002.

A federal appeals court in Chicago earlier this month overturned two minor charges of wire fraud against Timothy Durham and ordered that he be resentenced.

Durham was one of three men, all Indiana residents, convicted in the case following a trial in federal court in Indianapolis. The others, Fair Finance co-owner James Cochran and employee Rick Snow, lost their appeals.

Cochran received a 25-year prison sentence, while Snow received 10 years.

The appeals court ruling noted that after Durham, Cochran and Snow controlled Fair Finance, “the trio quickly turned it into their personal piggy bank.”

The appeals court said Durham used $110,000 in Fair Finance money to pay for a Playboy-themed party and that Fair loaned $9 million to a company that held Durham’s personal car collection. The court said Cochran used nearly $784,000 in Fair Finance money for a real estate purchase.

Fair Finance, founded in the 1930s, never reopened following FBI raids in Akron the day before Thanksgiving in 2009.

Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.