National Lampoon CEO Arrested in Weho on Suspicion of Fraud

The head of National Lampoon Inc., the long-standing comedy franchise behind movies such as Animal House and the Vacation series, located at 8228 W. Sunset Blvd., was arrested in West Hollywood early Wednesday on suspicion of running a Ponzi scheme involving about $200 million, according to federal authorities. 

A federal grand jury indictment accuses 48-year-old Timothy Durham of defrauding investors through his loan company and using the money for himself, yachting and traveling on private jets, the Los Angeles Times reported.

The arrest and indictment come two years after the FBI raided two of Durham's businesses—Obsidian Enterprises Inc. of Indianapolis and Fair Finance Co. of Akron, Ohio, the Times reported.

Durham, who has been the chief executive officer of National Lampoon since 2009, is scheduled to be in U.S. District Court in Los Angeles Wednesday afternoon.

Also named in the 23-page grand jury indictment are Durham's business associates James F. Cochran and Rick D. Snow, reported City News Service. Both face 12 criminal counts related to wire and securities fraud.

City News Service contributed to this story.