Victims of Indianapolis businessman Tim Durham, who was convicted in 2012 of running a Ponzi that defrauded investors out of $200 million, have hit another roadblock after the 6th Circuit Court of Appeals rejected an attempt to recoup some of their losses.

In a Sept. 10 ruling in In re: Brian A. Bash, Chapter 7 Trustee v. Textron Financial Corporation, 20-3351, the unanimous appellate panel blocked the bankruptcy trustee’s effort to claw back the money Durham’s company, Fair Finance Co., had paid to Textron Financial Corp. as part of a $17.5 million revolving loan agreement. The circuit court, which described one of the trustee’s arguments as convoluted, affirmed the Northern District of Ohio Court’s decision to grant partial summary judgment to Textron and found no error in the lower court’s instructions to the jury.

Through its attorney, Textron declined to comment. Chapter 7 Trustee Brian Bash also did not respond to a request for comment.

Bash filed an adversary proceeding against Textron in 2011 and by 2018 it was the last major lawsuit remaining of the more than 140 he had filed. He alleged Textron knew Fair Finance was a “house of cards,” but continued to lend money to the Akron, Ohio-based company. Moreover, Textron protected itself from harm and “helped prevent public exposure of Fair Finance’s precarious financial condition.”

Textron was paid in full in 2007, and two years later Fair Finance’s Ponzi scheme was exposed. Bash…

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