...defense attorneys knew he had talked to the FBI.

Key witness an informant in FBI probe, trial reveals
Jodi Andes
Mar 06, 2008 (The Columbus Dispatch - McClatchy-Tribune Information Services via COMTEX) --

The leading expert for National Century executives accused of the nation's largest private fraud was a snitch for the FBI in the same case, testimony yesterday showed.

Computer programmer Jon Bryant, who was paid to testify by the defense, had talked with the FBI about fraudulent business at National Century Financial Enterprises.

Bryant also had met with the FBI and handed over National Century documents he had secretly stored at his house.

But Bryant hadn't told defense attorneys all that before federal Judge Algenon L. Marbley declared him an "expert witness" for the defense. Bryant testified yesterday and Tuesday.

Assistant U.S. Attorney Doug Squires questioned Bryant:

"Did you ever tell the FBI there was fraud at NCFE?"

"Back in 2002, did you ever tell the FBI that NCFE was providing funding to providers without accounts receivable?"

"Did you ever keep any documents from NCFE about wrongdoing?"

Several times, Bryant said he couldn't recall his conversation with FBI agents, but he later said it was "possible" that he had made such statements.

Defense attorneys had called Bryant to the stand on Tuesday to testify about work he did analyzing National Century's computer system. Bryant told jurors he was paid $80 an hour by the five defendants to do the analysis and testify.

Crashes in nine of the company's hard drives, discovered years after National Century filed for bankruptcy, made it impossible for anyone to make conclusions about the company's data, Bryant told the jury.

The statements were meant to counter the government's expert witness, Bernard Woolfley, who testified last week that National Century's records show officials gave hundreds of millions in unsecured loans.

The Dublin-based company offered financing to health-care providers by agreeing to buy the providers' debts, or accounts receivable, and give them cash to cover expenses.

The government hired Woolfley, paying him $2.1 million thus far, to determine such things as how much unsecured funding was given away and where it went. The money went to companies that National Century founders Rebecca S. Parrett, Donald H. Ayers and Lance K. Poulsen partially owned, Woolfley told jurors.

Woolfley gave several examples of the business dealings National Century had with health-care providers across the country:

National Century owned all of the facilities for a company called HCCA. National Century officials wired the health-care provider $334.7 million between 1999 and 2002, without HCCA providing accounts receivable to show how the money could be repaid.

In addition, National Century owned close to half of Rx Medical Services' common stock and all of its preferred stock. Rx Medical received $18.9 million in unsecured loans between 1999 and 2002.

National Century executives also had voting control of Medshares stock. National Century wired that company $93 million without receivables during that same time frame.
Former National Century executives Parrett, Ayers, James E. Dierker, Roger S. Faulkenberry and Randolph H. Speer are charged with fraud, securities fraud, wire fraud and money laundering.

As Bryant left the courthouse yesterday, he told The Dispatch that defense attorneys knew he had talked to the FBI.

But asked whether he previously told them that he gave federal authorities company documents, he said, "No. It kinda slipped my mind."

Defense attorneys said they don't comment on witnesses and didn't continue to question Bryant much on the stand once the prosecutor was done.

"You realize that the FBI considers you a confidential informant," defense attorney Greg Peterson asked Bryant in front of jurors. "But do you stand by your analysis of the AS 400 (computer system)?"

Bryant said he did.

jandes@dispatch.com