National Lampoon goes to jail? SEC, Justice Dept. file charges

APR 07, 2011
The chief executive and financial officers of comedy company National Lampoon Inc. have been charged with running a $230 million Ponzi scheme. Timothy S. Durham, National Lampoon's chief executive, and Rick D. Snow, its chief financial officer, were charged along with James F. Cochran, another associate, by the Securities and Exchange Commission and the Justice Department. The SEC is accusing the three of orchestrating a fraudulent $230 million scheme involving at least 5,200 investors, many of them elderly. The three orchestrated the fraud by purchasing Fair Finance Co. of Akron, Ohio, which they used to sell interest-bearing certificates. Instead of using the funds to make loans, the three diverted investor proceeds to themselves and others, and to unprofitable entities they controlled, according to the SEC complaint. National Lampoon is no stranger to allegations of funny business at the top. A former CEO, Daniel Laikin, was charged with securities fraud by federal prosecutors in 2008 for plotting to inflate the company's share price artificially by paying people to buy shares. He was sentenced in December to three years and nine months in prison. Mr. Durham and Mr. Cochran financed an extravagant lifestyle with the money, buying multiple homes, a private jet, a yacht, and classic and exotic cars, the government alleges. They also diverted investor money to cover gambling and travel expenses, credit card bills and country club dues, and to pay for parties and other entertainment, the complaint said. The SEC filed a civil action against the three in U.S. District Court in Southern Indiana, and the Justice Department filed criminal charges based on the same misconduct. National Lampoon publishes the long-running National Lampoon magazine and produces a variety of media. It owns interests in a number of properties, including “Animal House” and the “National Lampoon's Vacation” series.

Latest News

Northern Trust names new West Region president for wealth
Northern Trust names new West Region president for wealth

The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.

Capital Group extends retirement plan services further with a focus on advisors
Capital Group extends retirement plan services further with a focus on advisors

The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.

Why RIAs are the next growth frontier for annuities
Why RIAs are the next growth frontier for annuities

David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.

Supreme Court slaps down challenge to IRS summons for Coinbase user data
Supreme Court slaps down challenge to IRS summons for Coinbase user data

Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."

Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director
Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director

Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.