Indiana businessman ordered to pay $1.3 million in SEC case

An Indianapolis businessman has been ordered to pay $1.3 million in a six-year-old securities fraud case.

The Indianapolis Business Journal reports that federal judge Jane Magnus-Stinson sided with the Securities and Exchange Commission on Friday and found that Tim Durham violated securities law.

The SEC had asked that Magnus-Stinson order Durham to repay more than $200 million he acquired through ill-gotten gains. Magnus-Stinson calculated the $1.3 million fine by giving Durham a $130,000 penalty for each of his 10 criminal convictions.

Durham was convicted of securities fraud, conspiracy and wire fraud in 2012 for running a Ponzi scheme that defrauded more than 5,000 investors through his Akron, Ohio-based company, Fair Finance. He was sentenced to 50 years in prison.

The company’s bankruptcy trustee has paid investors $18 million.