"...millions of dollars in advances being sent to companies that Poulsen and two other National Century executives owned."

So, who are the "Other" two executives....really???


Monday, March 17, 2008 - 6:23 PM EDT
Jury picked

Seven women and five men have been picked as jurors to decide if a Central Ohio CEO and an associate tried to bribe a government witness in the fraud trial triggered by the collapse of National Century Financial Enterprises Inc.

The federal court trial of Lance Poulsen, once the head of Dublin-based National Century, began Monday in Columbus with jury selection. Attorneys for the U.S. Justice Department and the defendants drained a pool of more than 60 candidates to select 12 jurors and two alternates for what is expected to be a week-and-a-half-long trial.

Poulsen, 64, of Port Charlotte, Fla., was indicted with Karl A. Demmler, 57, of Columbus, last October on charges they attempted to bribe former National Century executive Sherry Gibson with $500,000. The government has alleged Poulsen, a co-founder of the now defunct National Century, expected Gibson's testimony would be so damaging that he planned to pay her to develop a case of "amnesia" when she was called to the witness stand.

Gibson testified in a related trial that ended last week with five former executives at National Century being convicted on conspiracy, wire fraud and securities fraud charges.

National Century's business was financing health-care providers by buying their accounts receivables at a discount and packaging them as asset-backed bonds for sale to investors. But Gibson testified at the recently concluded trial that Poulsen directed her in a scheme that resulted in millions of dollars in advances being sent to companies that Poulsen and two other National Century executives owned. Gibson testified she and others doctored company records to hide a fraud that ended with National Century being put into bankruptcy in 2002 and leaving nearly $3 billion unaccounted.

Gibson pleaded guilty to a count of conspiracy to commit securities fraud and spent three years in a federal penitentiary. She was forced to give up her $420,000 net worth to the government and agreed to cooperate with the Justice Department's investigation.

She is expected to testify in the Poulsen-Demmler trial and likely will tell jurors that Poulsen planned to pay her through a legal services company that Demmler set up.

Poulsen and Demmler face a count each of conspiracy to obstruct justice, witness tampering and witness tampering by influencing testimony. They have denied the charges.

After the jury left Monday, U.S. District Court Judge Algenon Marbley asked Poulsen and Demmler if they were aware of a plea agreement offered to them by the government. Both defendants acknowledged the offer. Demmler went a step further, telling Marbley the government's offer was nothing "substantial."

Opening arguments in the trial are scheduled to begin Tuesday morning.