Maybe one of HCA's "Behavioral" Institutions could have assisted this witness!!!
Monday, February 25, 2008 - 3:25 PM EST
Defense questions witness' alcohol, prescription drug use
Defense lawyers' questioning of the government's star witness in the National Century Financial Enterprises Inc. trial began in earnest Monday morning, with lawyers asking about her alcohol use and visits to a psychiatrist.
Sherry Gibson, National Century's former executive vice president of compliance, testified last week she was at the center of company executives' efforts to lie to investors and divert money. She testified the company kept two sets of books, one accurate and another for investors that had been ginned to show National Century in better financial shape. She said the five executives on trial knew about the arrangement and actively helped to maintain the dual ledgers.
After the government closed its questioning of Gibson Monday morning, defense attorney Javier Armengau began his cross-examination by asking Gibson about a joking presentation about National Century's finances she gave at a company holiday party, where she suggested the company's initials stood for 'No Cash Flow Ever.'
"Just how drunk were you?" Armengau asked.
Gibson replied that she wasn't drunk.
"But alcohol issues plagued you throughout your (National Century) employment, no?" Armengau asked.
Again, Gibson denied she had a problem with alcohol.
Armengau also asked about "psychotic" medications Gibson took during her time at National Century, which Gibson replied were antidepressants.
Another line of questioning dealt with why Gibson remained at National Century until its 2002 collapse. She she could have left the company at any time, but chose to stay. Armengau suggested Gibson told her psychiatrist she felt trapped there and unworthy of working anywhere else. Gibson replied she didn't recall what she had told her doctor.
The government has accused the executives of engaging in conspiracy, money laundering and securities fraud in a scheme that led to the company's bankruptcy in 2002. National Century specialized in purchasing receivables from health-care providers at a discount, giving the providers cash up front so they could pay their bills. The company packaged the receivables as asset-backed bonds and sold them to investors.
Rebecca Parrett, Donald Ayers, Roger Faulkenberry, Randolph Speer and James Dierker have all pleaded not guilty to the charges. If found guilty, they face 30 years to life in prison.
Gibson had been indicted with the executives but pleaded guilty in 2003 to a count of conspiracy to commit securities fraud. She spent three years in a federal penitentiary in Lexington, Ky., liquidated her holdings valued at about $420,000 to repay the government, and agreed to cooperate with the Justice Department's investigation.
Before defense questioning began, Gibson told jurors Monday morning that National Century executives took pride in their deception. She recalled how she and Dierker laughed at Ivy League-educated National Century investors who thought they were smarter than the executives, many of whom went to Ohio colleges and universities.
"(Investors) weren't asking questions and they weren't getting answers," Gibson said.
Gibson is expected to remain on the witness stand Monday as defense attorneys complete their cross-examination.
National Century's CEO Lance Poulsen and James Happ, another company executive, are to stand trial later in the year.
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