Timothy Durham, chief executive of comedy company National Lampoon in Hollywood, was indicated by a grand jury late Tuesday on charges of securities and wire fraud. He was taken into custody at his home in Los Angeles in the early morning Wednesday.

The charges stem from the bankruptcy of Fair Finance Co. of Akron, Ohio, a company that Durham and a partner controlled. The indictment alleges the partners ran Fair Finance as a Ponzi scheme that defrauded investors of millions of dollars.

Until Durham bought Fair Finance in 2002, it operated as a factoring company, buying accounts receivables from small businesses at a discounted price and making a profit when it collected the full amount. To raise money to purchase the accounts receivables, Fair Finance sold investment certificates, similar to bank CDs, to investors.

Soon after buying the company, Durham and his associates stopped buying accounts receivables and instead used investors’ money to make loans to themselves and their businesses. The indictment alleges they concealed the change from investors and lied to solicit fresh money. The loans were never repaid, causing the company to declare bankruptcy in 2010. Fair Finance is no longer in business.

A separate civil suit filed by the bankruptcy trustee estimates Durham and his associates defrauded investors of about $200 million.

What affect the indictment may have on National Lampoon is unclear.