Gibson pleaded guilty in 2003

By Andrew Welsh-Huggins
ASSOCIATED PRESS

10:56 a.m. March 24, 2008

COLUMBUS, Ohio – The government's chief target in a $1.9 billion corporate fraud case took the stand Monday to criticize a former employee he is accused of trying to bribe to give favorable testimony.
Former health care executive Lance Poulsen testified that the key prosecution witness – Sherry Gibson, former executive vice president at National Century Financial Enterprises – didn't get along with other employees. He said two employees accused her of being physically and sexually abusive toward them. Poulsen did not give details.
Gibson's attorney, Terry Sherman, said he'd never heard the allegations and would not have his client respond to them.
“It appears to me that Lance Poulsen has every reason to demean Sherry Gibson any way he can ...,” Sherman said by telephone. “It sounds to me like he's trying to get the jury to take the eye off the ball.”

After the witness tampering trial, Poulsen goes on trial in August on multiple charges of conspiracy, securities and wire fraud and money laundering. The government alleges he misled investors about unsecured loans his company was providing health care companies such as hospitals and nursing homes.

Before that trial, he is defending himself against charges that he and longtime acquaintance Karl Demmler, a Columbus bar and restaurant owner, teamed up to persuade the witness to help Poulsen beat the fraud case against him.

Poulsen is founder and former chief executive officer of National Century, once described as the country's biggest health care financing company.

Poulsen testified that two employees slipped him a note accusing Gibson of the alleged abuse. “They just weren't going to work for her anymore,” Poulsen said under questioning by his defense attorney William Terpening.

Poulsen also said he defended Gibson from another employee's request that she be fired because she was difficult to work with.

Gibson had little involvement in the company's day-to-day operations, Poulsen said.

Government attorneys have not questioned Poulsen yet about his testimony.

Defense lawyers began their case Monday after the government spent a week playing taped phone calls and meetings for a federal jury.

Poulsen said on a tape played Friday that Gibson should explain that her previous statements to prosecutors were based on old facts.

Poulsen said on the recording of a conversation with his co-defendant Demmler that Gibson should say, “But now, there is a new set of charges and it's a new indictment and I'm not familiar with it.”

Prosecutors say Gibson was promised $500,000 if she could “have amnesia” when it came time to testify.

Gibson pleaded guilty in 2003 to a lesser charge of securities fraud in exchange for helping prosecutors.


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On the Net:
U.S. Attorney's Office, Southern District of Ohio: www.usdoj.gov/usao/ohs/index.html