Bankrupt auction house owes $240K to City of Jackson, Miss.

JACKSON, Miss. (AP) – The City of Jackson may sue to recover about $240,000 in bad checks from Durham Auctions Inc.

The city council this week authorized the lawsuit after it was told checks from Durham Auctions for two August auctions bounced.

Durham Auctions has shut its doors. It filed in November for bankruptcy, citing $18 million in debts.

Some lawsuits already have been filed against the company and its owners, Don Durham and his son, James Durham.

Don Durham has been arrested twice this year on embezzlement charges. James Durham has been arrested on bad check charges in Forrest County.

The FBI says James Durham has two outstanding warrants in Louisiana for theft of about $531,000. The city of Kenner, La., has sued Durham Auctions for that money.

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Information from: The Hattiesburg American,
http://www.hattiesburgamerican.com

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AP-WS-12-25-08 1157EST