A federal Court of Appeals recently reversed a couple multiple fraud counts against an ex-CEO of a now-defunct Indiana investment company after prosecutors failed to back up charges with evidence.
Timothy Durham, the ex-CEO of Fair Finance Co., was sentenced to 50 years of jail time for taking part in a fraud that affected thousands of investors over $200 million.
The Court of Appeals made a ruling saying that the failure of federal prosecutors to offer compelling evidence to back up counts of wire fraud led to having the charges dropped.
Durham’s lawyers said that not enough proof of money trail brought up indicated wire fraud. The Court of Appeals agreed since the printouts didn’t specifically show how the money was used for fraud.
The Court of Appeals did allow the remaining convictions for Durham to stand: 8 counts of wire fraud, 1 count of conspiracy to commit wire fraud, 1 count of securities fraud.
The case is being send back to a district court for a re-sentencing.