Comments on Advance Indiana™: Fair Finance Had Cash Flow Problems Earlier This Year

CLST made three purchases of receivables; Fortress...

2009-12-10T12:58:41.083-05:00

CLST made three purchases of receivables; Fortress, Summit and Fair. Fortress and Summit are also referenced in the circular with prior relationships with Fair.

The direct purchase from Fair was the last one announced, perhaps Durham tried to avoid a direct purchase as long as possible.

Fair Finance funded related parties, and CLST funded Fair, it appears.

It seems obvious Fair Finance was scrounging for cash. Also, OH Department of Securities guidelines state companies are supposed to notify the department of material changes in financial condition, will be interesting to see if there was a notification.

An article stated Greg Andrews at IBJ found out about Durham's involvement with Fair in March, and I am guessing it is related to CLST. The IBJ article about CLST's purchase from Fair came out in March.

Thanks for the information, Erich. The SEC is go...

2009-12-10T11:35:33.255-05:00

Thanks for the information, Erich.

The SEC is going to have a field day with this. Just think--if Durham had not ever had CLST buy receivables from Fair, no one would have ever known he owned Fair, the IBJ would not have dug up the dirt, and he'd be sitting fat and happy in LA instead of holed up with his attorneys, trying to figure out how he is going to dig himself out of this mess.

I bet that guy who cashed $50k and rolled over $20...

2009-12-10T10:32:04.502-05:00

I bet that guy who cashed $50k and rolled over $20k, wished he had cashed in the entire account instead last July.

Fair Finance states this in the Nov 24 2009 offeri...

2009-12-10T10:22:48.491-05:00

Fair Finance states this in the Nov 24 2009 offering circular:

"At the beginning of 2009, management of Fair Finance Company was concerned about the affect that the country's economic downturn may have upon Fair's ability to obtain sufficient capital to repay investment
certificates as they become due. Furthermore, Fair had certain consumer finance receivables that were unable to be leveraged under its wholly owned subsidiary and loan with Fortress Credit Corp. As a result of this concern, and Fair's inability to leverage the returns of these receivables, on February 13, 2009, Fair Finance Company entered into an agreement to sell $3,594,354 worth of finance receivables to CLST Asset III, LLC, a Delaware Limited Liability Company."