Defense launched in witness tampering trial

The middleman in an alleged witness tampering scheme had a chance to turn on his friend and the former boss of the failed National Century Financial Enterprises Inc. but didn't do it, a federal agent testified Friday afternoon.

FBI Special Agent Jeffrey Williams told a 12-member jury in Columbus that he gave Karl Demmler a chance to turn on ex-CEO Lance Poulsen, but Demmler refused. He added that Demmler may also face money laundering charges in the future.

Williams was testifying in the bribery trial of Poulsen and Demmler, both of whom are facing one count each of conspiracy to obstruct justice, witness tampering and witness tampering by influencing testimony. The government has alleged Demmler, 57, of Columbus, was working with Poulsen, 64, of Port Charlotte, Fla., to bribe former National Century executive Sherry Gibson, who is prepared to testify against Poulsen in a securities fraud trial.

The men have pleaded not guilty to the charges.

Under questioning by defense lawyer Darryl Parker on Friday afternoon, Williams said that when he arrested Demmler at Port Columbus International Airport last October, he offered him a chance to turn on Poulsen.

"I said that this was an opportunity for Demmler to help himself," Williams testified, adding he told Demmler that Poulsen likely wouldn't be his friend in the future.

After the arrest, Williams said he played for Demmler taped conversations Demmler had with Poulsen about bribing Gibson. Williams said he also played conversations of Demmler attempting to persuade Gibson to change her testimony.

Demmler refused to work with the government by taping conversations between himself and Poulsen, Williams said. The FBI agent also noted that when he arrested Demmler, the government found what it alleges were bogus promissory notes for millions of dollars in Demmler's suitcase. Williams alleged Demmler was going to try to sell the notes in Venezuela.

When asked by Demmler's attorney if Demmler has been charged with money laundering, Williams replied, "Not yet."

The government has alleged Demmler was a middleman for Poulsen and tried to bribe Gibson with $500,000 to $1 million.
In addition to the witness tampering charges, Poulsen has been accused by the government of having directed Gibson in a $3 billion fraud at Dublin-based National Century when she was an executive vice president at the firm.

On the defensive
When the government rested its case following Williams' testimony, attorneys for Poulsen and Demmler asked U.S. District Judge Algenon Marbley to order an acquittal, claiming Justice Department lawyers had failed to offer sufficient evidence to warrant a conviction of the men. Marbley denied the motions.

The defense for Poulsen began building its case with Thomas Tyack, a Columbus lawyer who once was the ex-CEO's attorney. He testified Poulsen told him he felt Gibson had been "railroaded" by the government when she pleaded guilty for her hand in the troubles at National Century and that he wanted to help her.

Gibson spent three years in prison after pleading guilty to a count of conspiracy to commit securities fraud. She also gave up her entire net worth - about $420,000 - to the government.

Tyack said he advised Poulsen not to contact Gibson. He also testified he gave a list of defense attorneys to Demmler that Gibson could call if she wanted to try to overturn her guilty plea.

Tyack testified he thought Gibson may have received bad advice from her attorney when she pleaded guilty to the government's charge. Tyack said Poulsen had hoped to help Gibson find a new attorney.

Defense attorneys have argued throughout the trial that Poulsen wasn't attempting to bribe Gibson, but wanted to help her get a new lawyer so that she could sue the government and regain her net worth.

Tyack testified he resigned from representing Poulsen because he felt he would be called to testify in Poulsen's witness tampering trial, and he could not ethically be a witness and represent Poulsen at the same time.