Former National Century Financial Enterprises Executives Found Guilty on All Charges in $3 Billion Securities Fraud Scheme
03.13.08, 7:09 PM ET
Defendants Guilty of Conspiracy, Fraud and Money Laundering
WASHINGTON, March 13 /PRNewswire-USNewswire/ -- A federal jury has found five former executives of National Century Financial Enterprises (NCFE) guilty of conspiracy, fraud and money laundering, following a six-week trial and less than two days of deliberation, Assistant Attorney General Alice S. Fisher and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced today. The Columbus, Ohio, jury returned the guilty verdict on all charges contained in a 27-count superseding indictment stemming from a scheme to deceive investors about the financial health of NCFE. The company, which was based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
Donald H. Ayers, 71, of Fort Meyers, Fla., an NCFE vice chairman, chief operating officer, director and an owner of the company, was found guilty on charges of conspiracy, securities fraud and money laundering.
Rebecca S. Parrett, 59, of Carefree, Ariz., an NCFE vice chairman, secretary, treasurer, director and an owner of the company, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering.
Randolph H. Speer, 58, of Peachtree City, Ga., NCFE's chief financial officer, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering.
Roger S. Faulkenberry, 46, of Dublin, Ohio, a senior executive responsible for raising money from investors, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering.
James E. Dierker, 40, of Powell, Ohio, associate director of marketing and vice president of client development, was found guilty on charges of conspiracy and money laundering.
"These convictions send a clear message to corporate America that executives will be brought to justice for lying to investors and misrepresenting the actions taken in their normal course of business," said Deputy Attorney General Mark Filip, chairman of the President's Corporate Fraud Task Force. "These are the latest successes in our efforts to improve the integrity of our financial markets."
"By holding accountable those who break the law, today's convictions help restore some of the faith and trust the public loses every time corporate executives defraud their investors. The jury's verdict demonstrates that the public will not stand by while company executives commit billion dollar frauds, leaving the honest investors to bear the losses they create," said Assistant Attorney General Alice S. Fisher. "I would like to thank the trial attorneys from the Fraud Section and the U.S. Attorney's Office as well as the FBI, IRS, Immigration and Customs Enforcement and U.S. Postal Inspection Service for their diligent and successful work on this case."
"The jury convicted company executives of building a financial house of cards and deceiving investors using financial sleight of hand," said Gregory G. Lockhart, United States Attorney for the Southern District of Ohio. "I commend the agents, investigators and prosecutors from the Fraud Section and our office for their hard work on this lengthy and complex case."
"This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America," said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division. "The FBI continues to leverage its corporate fraud expertise gained through large-scale investigations such as Enron and WorldCom, to ensure that corporations represent their true health. From Dublin, Ohio, to Houston, Texas to New York, New York, the message is clear that the FBI will not stand by as corporate executives manipulate their financial statements and conceal illegal activities from criminal and regulatory authorities."
"IRS aggressively pursues corporations and their officers who use their positions of trust for illegal activities. This kind of fraud touches the lives of many unsuspecting citizens and the public should know that the government is serious about holding corporations and their executives accountable," said Eileen C. Mayer, chief, Internal Revenue Service Criminal Investigation.
At trial, the government presented evidence that the defendants engaged in a scheme to deceive investors and rating agencies about the financial health of NCFE and how investor monies would be used. Between May 1998 and May 2001, NCFE sold notes to investors with an aggregate value of $4.4 billion, which evidence presented at trial showed were worth approximately six cents on the dollar at the time of NCFE's bankruptcy in November 2002.
NCFE presented a business model to investors and rating agencies that called for NCFE to purchase high-quality accounts receivable from healthcare providers using money NCFE obtained through the sale of asset-backed notes to institutional investors. The evidence at trial showed that NCFE advanced money to health care providers without receipt of the requisite accounts receivable, oftentimes to healthcare providers that were owned in whole or in part by the defendants. The evidence further showed that the defendants lied to investors and rating agencies in order to cover up this fraud.
The evidence at trial showed that NCFE concealed from investors the shortfalls produced by this fraud by moving money back and forth between accounts, fabricating data in investor reports, incorporating false information into the accounting system, and making other false statements to investors and rating agencies. Moreover, the defendants' compensation was tied to the amount of money they advanced to healthcare providers and those providers' outstanding balance owed to NCFE. The government presented evidence at trial that showed that the defendants knew that the business model NCFE presented to the investing public differed drastically from the way NCFE did business within its own walls and that NCFE was making up the information contained in monthly investor reports to make it appear as though NCFE was in compliance with its own governing documents.
Defendants face the following maximum penalties: Donald H. Ayers, 55 years in prison and $2.25 million in fines; Rebecca S. Parrett, 75 years in prison and $2.5 million in fines; Randolph H. Speer, 140 years in prison and $4.25 million in fines; Roger S. Faulkenberry, 85 years in prison and $2.5 million in fines; James E. Dierker, 65 years in prison and $1.75 million in fines.
The case was prosecuted by Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Senior Trial Attorney Kathleen McGovern and Trial Attorney Wes R. Porter of the Fraud Section, with assistance from Fraud Section Paralegal Specialists Crystal Curry and Sarah Marberg, FBI agents Matt Daly, Ingrid Schmitt, and Tad Morris, IRS Inspectors Greg Ruwe and Mark Bailey, U.S. Postal Inspector Dave Mooney and ICE Agent Celeste Koszut.
SOURCE U.S. Department of Justice
Wednesday, April 30, 2008
Health-care providers acknowledged that they took money out of the lockboxes ....Providers are the clue as to where to follow the money!
Take a really deep look into where the money is.
Where did this begin? We never address the "ROOT" of the problem.
NATIONAL CENTURY
Prosecutors look to take executives' homes, cars
Monday, April 28, 2008 3:17 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Click to enlarge
Complete coveragePension funds and public and private investors lost a total of $1.9 billion when National Century Financial Enterprises collapsed, the investors say.
This week, federal prosecutors begin trying to recoup some of that money by asking a judge to make five recently convicted company executives financially responsible.
Prosecutors are trying to attach a $1.7 billion IOU to each of the defendants. The amount reflects losses that were proved at trial. Assets would be collected from each until $1.7 billion is recovered.
To accomplish that, prosecutors will be going for "every last penny" the defendants have, Assistant U.S. Attorney Doug Squires said in federal filings.
That means such things as Donald H. Ayers' million-dollar homes and Rebecca S. Parrett's art gallery as well as cars, televisions and jewelry.
It's difficult to gauge how much can be recouped, said Fred Alverson, spokesman for the U.S. attorney's office.
Prosecutors estimate that Ayers made more than $7.4 million while working at National Century; Parrett, $7.6 million; Randolph H. Speer, around $1.2 million; Roger S. Faulkenberry, about $2.3 million; and James E. Dierker Jr., more than $712,000.
If U.S. District Judge Algenon L. Marbley agrees that the five should be held financially responsible, prosecutors will follow up with filings spelling out what the government hopes to seize, Squires said. Marbley is expected to rule in June.
Squires declined to elaborate on what the government will try to take. However, from earlier court filings, it's obvious that prosecutors have their sights on the defendants' homes, no matter whose name is on the deed.
Ayers has argued against forfeiting his Muirfield Village home because it's in his wife's name. Faulkenberry, too, lives in a home owned solely by his wife. He signed the house over to her in November 2002, the same month the company filed for bankruptcy, according to Delaware County records.
Parrett opened an art gallery in Carefree, Ariz., in 2005 and owns a personal art collection, according to news reports at the time.
If the judge agrees, the government could take her property even though Parrett disappeared in March and remains at large, Parrett's attorney, Greg Peterson, said. "He can proceed with her in absentia."
Court filings to date don't say what the executives own.
However, after the trial, Ayers withdrew $800,000 from a bank account, according to court testimony. Squires told Marbley the withdrawal showed that Ayers, like Parrett, is likely to flee. But Ayers' attorney, Brian Dickerson, said the money was to pay for past and future legal expenses.
What the government collects might be far less than $1.7 billion, Alverson conceded, but that is not a concern. "It's important to have that judgment against them in case they ever come into a large sum of money."
Any inheritance or lottery winnings, for example, could be seized, he said. Defense attorneys say their clients are broke.
Faulkenberry's and Speer's assets ran out before the February trial, and taxpayers covered the cost of their court-appointed attorneys; Parrett's Arizona home is in foreclosure, and she is practically indigent, Peterson said at the trial's end.
"It's not taken," James Ervin Jr., one of Speer's two attorneys, said of the money the government claims is owed. "And it's not in a Swiss bank account. It's not buried in a backyard.
"It's where it has always been, in lockboxes," Ervin said, referring to where National Century kept money before it was disbursed.
The company took over bills owed to health-care providers, offering them a lesser amount of cash upfront to pay their expenses. As insurance companies and government programs such as Medicaid paid the bills, National Century held the money in lockboxes.
Some was kept as company profit. Other money went to National Century investors.
Health-care providers acknowledged that they took money out of the lockboxes to stay afloat after National Century filed for bankruptcy. Defendants called it theft.
Kathy Patrick, an attorney who represents the largest group of investors in civil lawsuits against National Century, said she thinks the executives have more money than they admit, saying that Parrett has had the financial means to stay on the lam for a month.
Patrick said she anticipates that the government "will just hound people" until it gets the money.
jandes@dispatch.com
Where did this begin? We never address the "ROOT" of the problem.
NATIONAL CENTURY
Prosecutors look to take executives' homes, cars
Monday, April 28, 2008 3:17 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Click to enlarge
Complete coveragePension funds and public and private investors lost a total of $1.9 billion when National Century Financial Enterprises collapsed, the investors say.
This week, federal prosecutors begin trying to recoup some of that money by asking a judge to make five recently convicted company executives financially responsible.
Prosecutors are trying to attach a $1.7 billion IOU to each of the defendants. The amount reflects losses that were proved at trial. Assets would be collected from each until $1.7 billion is recovered.
To accomplish that, prosecutors will be going for "every last penny" the defendants have, Assistant U.S. Attorney Doug Squires said in federal filings.
That means such things as Donald H. Ayers' million-dollar homes and Rebecca S. Parrett's art gallery as well as cars, televisions and jewelry.
It's difficult to gauge how much can be recouped, said Fred Alverson, spokesman for the U.S. attorney's office.
Prosecutors estimate that Ayers made more than $7.4 million while working at National Century; Parrett, $7.6 million; Randolph H. Speer, around $1.2 million; Roger S. Faulkenberry, about $2.3 million; and James E. Dierker Jr., more than $712,000.
If U.S. District Judge Algenon L. Marbley agrees that the five should be held financially responsible, prosecutors will follow up with filings spelling out what the government hopes to seize, Squires said. Marbley is expected to rule in June.
Squires declined to elaborate on what the government will try to take. However, from earlier court filings, it's obvious that prosecutors have their sights on the defendants' homes, no matter whose name is on the deed.
Ayers has argued against forfeiting his Muirfield Village home because it's in his wife's name. Faulkenberry, too, lives in a home owned solely by his wife. He signed the house over to her in November 2002, the same month the company filed for bankruptcy, according to Delaware County records.
Parrett opened an art gallery in Carefree, Ariz., in 2005 and owns a personal art collection, according to news reports at the time.
If the judge agrees, the government could take her property even though Parrett disappeared in March and remains at large, Parrett's attorney, Greg Peterson, said. "He can proceed with her in absentia."
Court filings to date don't say what the executives own.
However, after the trial, Ayers withdrew $800,000 from a bank account, according to court testimony. Squires told Marbley the withdrawal showed that Ayers, like Parrett, is likely to flee. But Ayers' attorney, Brian Dickerson, said the money was to pay for past and future legal expenses.
What the government collects might be far less than $1.7 billion, Alverson conceded, but that is not a concern. "It's important to have that judgment against them in case they ever come into a large sum of money."
Any inheritance or lottery winnings, for example, could be seized, he said. Defense attorneys say their clients are broke.
Faulkenberry's and Speer's assets ran out before the February trial, and taxpayers covered the cost of their court-appointed attorneys; Parrett's Arizona home is in foreclosure, and she is practically indigent, Peterson said at the trial's end.
"It's not taken," James Ervin Jr., one of Speer's two attorneys, said of the money the government claims is owed. "And it's not in a Swiss bank account. It's not buried in a backyard.
"It's where it has always been, in lockboxes," Ervin said, referring to where National Century kept money before it was disbursed.
The company took over bills owed to health-care providers, offering them a lesser amount of cash upfront to pay their expenses. As insurance companies and government programs such as Medicaid paid the bills, National Century held the money in lockboxes.
Some was kept as company profit. Other money went to National Century investors.
Health-care providers acknowledged that they took money out of the lockboxes to stay afloat after National Century filed for bankruptcy. Defendants called it theft.
Kathy Patrick, an attorney who represents the largest group of investors in civil lawsuits against National Century, said she thinks the executives have more money than they admit, saying that Parrett has had the financial means to stay on the lam for a month.
Patrick said she anticipates that the government "will just hound people" until it gets the money.
jandes@dispatch.com
Monday, April 28, 2008
Just beginning to have "SUNSHINE" .....what really happened to heatlhcare ?
This is a good start, but the facts of the destruction in our Healthcare System in America has yet to be truly revealed.
From: http://www.americanchronicle.com/articles/59939
Nightline failed to report that similar suits are going on all over the country in an effort to stamp out the practice of Environmental Medicine. Case in point, the doctor treating over 400 Boeing employees for chemical injury in the state of Washington was sent threatening letters by the State Licensing Board in Washington.[1] John E. Bryson who sits on the board at Nightline's Disney/ABC also sits on the board at Boeing.
Round up the "good ol' boys" for another pass at genocide
So who else is around at Disney/ABC? Well, Richard Rainwater, a Texas billionaire owns a block of Disney/ABC. Rainwater is cofounder of the the largest for-profit hospital chain around, HCA/Healthcare, and an owner in a network of businesses which own and operate psychiatric hospitals.[2] He was also a partner with George W. Bush in ownership of the Texas Rangers until it was sold to Thomas Hicks.[3]
In 2000, HCA/Healthcare was the target of a federal government health fraud investigation, and subsequently paid hundreds of millions of dollars in civil penalties and criminal fraud charges. Want to hear one of the charges? It assured doctors joining its clinics that the company would use all their resources to ensure that any competing medical services failed.[4] (This needs deeper concentration)
The allergist used as a protagonist on Nightline's Show comes from University of Texas Southwestern Medical Center and if you go to ABC's website and look under 'health news', oddly enough, there are a preponderance of doctors from Southwestern Medical Center, many who malign alternative treatments for medical conditions. David A. Khan is there again, warning us in a video that acupuncture can have serious side effects.
After selling the Texas Rangers to Hicks, one of Bush's first acts as governor of Texas was to newly create a financial investment arm for the University of Texas and appoint Hicks as Chair. Now the public funds at U of T could be used to finance private projects. Nearly $9 million in state dollars from U of T were invested in Rainwater's holdings having to do with psychiatric care. So the University of Texas profits by increased use of psychiatric hospitals.[5][6]
Individual physicians working at University of Texas can also profit from increased use of drugs. CSPI's Integrity in Science Project currently lists 65 doctors at U of T who receive financial benefit from pharmaceutical companies. In addition, U of T Southwestern Medical Center lists 19 clinical trials for psychiatric drugs currently underway. Drug trials can be quite lucrative for participating physicians. The Wall Street Journal reported that doctors with academic affiliations have been paid as much as $30,000 per patient per drug trial, which translates to between $500,000 and a million dollars for participation in one study.[7] Doctors have also received five-figure consulting fees from pharmaceutical companies for nothing more than a commitment to prescribe the company's drugs.[8]
Moran failed to report on the broadcast that 16% of the U.S. population reports increased sensitivity to chemicals and of this, 3.5% have been diagnosed with life-altering Chemical Sensitivity.[9] A greater than average number of these people are living on the mid-coast of California where environmental conditions are supportive of recovery. Last year Bush declared a State of Emergency in this same area calling for monthly aerial spraying of pesticides over residential areas. This is life-threatening to those with Chemical Sensitivity. With over 6 million people total in the spray area, 210,000 disabled people will have to move or face severe consequences. Outraged citizen's groups have organized to resist the spraying which began last year in Santa Cruz and Monterey counties. What part of Monterey County escaped being sprayed with poison? Why Pebble Beach where Richard Rainwater owns a home.[10]
What else does the spraying in California accomplish beside disposing of the chemically sensitive at a faster rate? It destroys epidemiological evidence that avoidance of toxic chemicals results in healing of chronic medical conditions. And you thought you got on the clattering train of your own accord.
Another owner in Disney/ABC is the Bass family, notably Rainwater's friend Sid R. Bass, fellow Texas billionaire and heir to the Richardson oil and gas fortune. Bass also owns companies that manufacture medical equipment and a company that provides worker compensation insurance. Oil and gas drilling destroys environments that people need to have healthy lives. But if you also make money from people becoming ill, then that becomes an added benefit. Bass and his siblings also donate large sums to U of T.[11][12]
Who else stands to lose by recognition of chemical sensitivity? Several other board members at Disney/ABC do. Two Board members at ABC also sit on the board of Proctor and Gamble, manufacturer of a host of products for everyday household use that contain toxic chemicals. Additionally, over half of P&G's line of prescription drugs are used for conditions recognized as allergies by Environmental Medicine physicians. For example, P&G sells Enablex, prescribed for overactive bladder, a condition which is expected to generate prescription sales of $2.25 billion dollars a year.[13] Another ABC board member sits on Estee Lauder's (perfume) board, and yet another sits on the board at Chlorox.
By attempting to discredit Dr. Rea, a recognized authority on Chemical Sensitivity, businesses who stand to lose by recognition of this illness proactively protect their interests at the expense of the health of millions of Americans.
"Recognition of this syndrome as an illness, with potential to cause permanent disability, could involve changes in health care coverage and delivery, awarding of workers´ compensation benefits, and the regulation of chemicals in the workplace and the environment in the United States." (P. J. Sparks, et al. "Multiple Chemical Sensitivity: A Clinical Perspective"; Journal of Occupational Medicine [1994; 36: 718-737])
From: http://www.americanchronicle.com/articles/59939
Nightline failed to report that similar suits are going on all over the country in an effort to stamp out the practice of Environmental Medicine. Case in point, the doctor treating over 400 Boeing employees for chemical injury in the state of Washington was sent threatening letters by the State Licensing Board in Washington.[1] John E. Bryson who sits on the board at Nightline's Disney/ABC also sits on the board at Boeing.
Round up the "good ol' boys" for another pass at genocide
So who else is around at Disney/ABC? Well, Richard Rainwater, a Texas billionaire owns a block of Disney/ABC. Rainwater is cofounder of the the largest for-profit hospital chain around, HCA/Healthcare, and an owner in a network of businesses which own and operate psychiatric hospitals.[2] He was also a partner with George W. Bush in ownership of the Texas Rangers until it was sold to Thomas Hicks.[3]
In 2000, HCA/Healthcare was the target of a federal government health fraud investigation, and subsequently paid hundreds of millions of dollars in civil penalties and criminal fraud charges. Want to hear one of the charges? It assured doctors joining its clinics that the company would use all their resources to ensure that any competing medical services failed.[4] (This needs deeper concentration)
The allergist used as a protagonist on Nightline's Show comes from University of Texas Southwestern Medical Center and if you go to ABC's website and look under 'health news', oddly enough, there are a preponderance of doctors from Southwestern Medical Center, many who malign alternative treatments for medical conditions. David A. Khan is there again, warning us in a video that acupuncture can have serious side effects.
After selling the Texas Rangers to Hicks, one of Bush's first acts as governor of Texas was to newly create a financial investment arm for the University of Texas and appoint Hicks as Chair. Now the public funds at U of T could be used to finance private projects. Nearly $9 million in state dollars from U of T were invested in Rainwater's holdings having to do with psychiatric care. So the University of Texas profits by increased use of psychiatric hospitals.[5][6]
Individual physicians working at University of Texas can also profit from increased use of drugs. CSPI's Integrity in Science Project currently lists 65 doctors at U of T who receive financial benefit from pharmaceutical companies. In addition, U of T Southwestern Medical Center lists 19 clinical trials for psychiatric drugs currently underway. Drug trials can be quite lucrative for participating physicians. The Wall Street Journal reported that doctors with academic affiliations have been paid as much as $30,000 per patient per drug trial, which translates to between $500,000 and a million dollars for participation in one study.[7] Doctors have also received five-figure consulting fees from pharmaceutical companies for nothing more than a commitment to prescribe the company's drugs.[8]
Moran failed to report on the broadcast that 16% of the U.S. population reports increased sensitivity to chemicals and of this, 3.5% have been diagnosed with life-altering Chemical Sensitivity.[9] A greater than average number of these people are living on the mid-coast of California where environmental conditions are supportive of recovery. Last year Bush declared a State of Emergency in this same area calling for monthly aerial spraying of pesticides over residential areas. This is life-threatening to those with Chemical Sensitivity. With over 6 million people total in the spray area, 210,000 disabled people will have to move or face severe consequences. Outraged citizen's groups have organized to resist the spraying which began last year in Santa Cruz and Monterey counties. What part of Monterey County escaped being sprayed with poison? Why Pebble Beach where Richard Rainwater owns a home.[10]
What else does the spraying in California accomplish beside disposing of the chemically sensitive at a faster rate? It destroys epidemiological evidence that avoidance of toxic chemicals results in healing of chronic medical conditions. And you thought you got on the clattering train of your own accord.
Another owner in Disney/ABC is the Bass family, notably Rainwater's friend Sid R. Bass, fellow Texas billionaire and heir to the Richardson oil and gas fortune. Bass also owns companies that manufacture medical equipment and a company that provides worker compensation insurance. Oil and gas drilling destroys environments that people need to have healthy lives. But if you also make money from people becoming ill, then that becomes an added benefit. Bass and his siblings also donate large sums to U of T.[11][12]
Who else stands to lose by recognition of chemical sensitivity? Several other board members at Disney/ABC do. Two Board members at ABC also sit on the board of Proctor and Gamble, manufacturer of a host of products for everyday household use that contain toxic chemicals. Additionally, over half of P&G's line of prescription drugs are used for conditions recognized as allergies by Environmental Medicine physicians. For example, P&G sells Enablex, prescribed for overactive bladder, a condition which is expected to generate prescription sales of $2.25 billion dollars a year.[13] Another ABC board member sits on Estee Lauder's (perfume) board, and yet another sits on the board at Chlorox.
By attempting to discredit Dr. Rea, a recognized authority on Chemical Sensitivity, businesses who stand to lose by recognition of this illness proactively protect their interests at the expense of the health of millions of Americans.
"Recognition of this syndrome as an illness, with potential to cause permanent disability, could involve changes in health care coverage and delivery, awarding of workers´ compensation benefits, and the regulation of chemicals in the workplace and the environment in the United States." (P. J. Sparks, et al. "Multiple Chemical Sensitivity: A Clinical Perspective"; Journal of Occupational Medicine [1994; 36: 718-737])
Tuesday, April 22, 2008
JPMorgan & JP Morgan Chase Bank N.A. & Family....KNOW the difference
JP Morgan Chase Bank N.A.
JP Morgan Chase Bank N.A.
2696 South Colorado Blvd
Denver, Colorado 80222
contact: Cashin White, VP Business Banking
Chase Bank has been playing an integral role in the development of privately financed companies throughout the Colorado Front Range, whether the business was originally capitalized with VC funds, Private Equity, Angel Investors, or other sources. Chase has been able to fill the basic banking needs for these businesses as they mature by providing the most competitive cash management products, loans, and concierge level customer service.
For example, each business is assigned a small team of experts from Chase to focus on anticipating their needs and providing custom made solutions. By leveraging the services available through Chase Bank, the portfolio clients can obtain low cost financing on equipment, real estate, business acquisitions, and lines of credit; high returns on their investments, and increase the efficiency of their cash flow cycle. Couple the products with state-of-the-art technology, on-line capabilities, and local bankers with a large branch presence, and the team aspect of our business service becomes apparent.
As Chase Bank aids in the growth and success of the portfolio clients, the benefits are not only realized on the bottom-line of the business, but within the partnering Venture Capital company, and ultimately throughout the Colorado economy.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com
Media Contact:
JPMorgan - Pam Snook Tel: 212-270-7013, Email: pamela.v.snook@jpmchase.com
JPMorgan Private Equity Fund Services Launches DealVault Technology
New system tracks private equity investments valuation, risk and exposure globally
New York, April 1, 2008 - JPMorgan today announced the launch of DealVault, a new technology that tracks private equity investments valuations, performance, risk and exposure analysis globally.
JPMorgan Private Equity Fund Services (PEFS) developed DealVault to provide CFOs, deal and investor relations professionals with an advanced platform to centralize volumes of deal tracking information. DealVault integrates with accounting and back office systems, providing private equity investment professionals with one platform to administer every aspect of a private equity investment's lifecycle.
DealVault arms private equity investment professionals with new tools to:
Store portfolio company information in a web-based solution accessible globally
Package information in a robust, audit-controlled environment favored by auditors
Facilitate ongoing independent reviews valuations, performance against investment thesis and trend analysis
Reduce time spent aggregating and reconciling volumes of data tracking data
"As a top-tier private equity firm, we must utilize the most advanced, efficient and strategic technology platforms available, DealVault is all of these things wrapped into one," said Marc Unger, Chief Operating Officer of CCMP Capital.
James Hutter, Global Business Executive of JPMorgan PEFS, said: "DealVault is the industrial strength tool the private equity investment industry has been waiting for, particularly given valuation concerns in today's volatile market. The industry now has a dynamic, efficient and fully integrated solution that provides the controls and security that deal professionals and financial executives need."
JPMorgan PEFS provides a full suite of administration services to private equity investment firms, real estate firms and institutional investors. JPMorgan PEFS, which premiered in 2005, was ranked as Top Rated Firm Overall for Private Equity Administration by private equity firms in a recent global industry survey.
JPMorgan PEFS currently services more than 200 funds representing $50 billion in committed capital, and serves the world's largest and most sophisticated institutional investors with $110 billion in aggregate committed capital across thousands of private equity investments. PEFS has more than 160 professionals, with decades of experience, and locations in New York, London, Sydney, San Francisco, Chicago and Dallas.
For more information on JPMorgan Private Equity Fund Services go to www.jpmorgan.com/visit/PEFS
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com
Media Contact:
JPMorgan - Pam Snook Tel: 212-270-7013, Email: pamela.v.snook@jpmchase.com
JPMorgan to Acquire ClimateCare e-mail print Mar 26, 2008
Combination will create a leading market-maker in carbon emission reductions
London, March 26, 2008 - JPMorgan through its investment bank, and ClimateCare, a pioneer in carbon emission reductions, announced today that they will join forces in an acquisition to invest in quality, large-scale carbon emission reduction projects and to advance the development of a liquid financial market that trades in carbon emission reduction credits.
Upon closing of the transaction, expected sometime in the second quarter, ClimateCare will be integrated into JPMorgan's existing world class Environmental Markets group. The combined group will originate carbon emission reduction projects globally and trade the carbon emission reduction credits generated by the projects in the compliance and voluntary markets.
The group will initially operate under the JPMorgan and ClimateCare brand names.
Blythe Masters, head of Commodities at JPMorgan, said: "Clients are seeking to reduce their emissions both due to regulations and out of social responsibility. This transaction positions JPMorgan to offer the highest-quality advice and execution in emerging carbon emissions markets."
She continued: "A big challenge needs a big approach. It is fitting that a first tier financial institution like JPMorgan is now backing the pioneering work of ClimateCare."
Mike Mason, founder of ClimateCare, said: "After building up this business for over a decade, becoming part of JPMorgan is exactly what ClimateCare needs in order to grow rapidly and achieve its goal of having the biggest impact possible in tackling climate change."
He continued: "Together with JPMorgan, ClimateCare can now deliver its expertise on a truly global scale, and work with hundreds of major partners around the world to facilitate the roll-out of low-carbon technologies at the scale and pace required to make a genuine difference to our environment."
JPMorgan and ClimateCare anticipate originating projects that will materially increase ClimateCare's capacity to reduce carbon emissions.
Financial terms of the acquisition were not disclosed.
JPMorgan and ClimateCare affirmed their commitment to adopting and promoting universal standards to measure the impact of carbon emission reduction projects in the voluntary market. Universal standards will promote much needed transparency and liquidity in carbon emissions trading.
All projects originated by the group will continue to be subject to JPMorgan and ClimateCare's strict independent verification procedures to ensure compliance with stated carbon emission reduction goals. Also, as part of the acquisition, ClimateCare's project sourcing arm, Pioneer Carbon, will become part of the newly combined business.
ClimateCare's acquisition represents a new milestone in JPMorgan's ongoing investment in its Commodities business. In 2007, JPMorgan hired over 50 new marketing, sales and trading professionals in Commodities and will hire as least as many in 2008.
JPMorgan adopted a comprehensive environmental policy in 2005 that includes a strong commitment to addressing climate change by reducing its carbon emissions and working with its clients to do so in their business activities. For example, the firm recently helped to create the Carbon Principles, a multi-stakeholder engagement to address the risk of carbon in the U.S. power sector.
# # #
About JPMorgan
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase has its corporate headquarters in New York and its U.S. retail financial services and commercial banking headquarters in Chicago. Under its JPMorgan and Chase brands, the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients.
About ClimateCare
ClimateCare is a world leading carbon offset provider, founded in 1997, making reductions of greenhouse gases such as co2 on behalf of individuals and companies.
These reductions are made through originating and investing in a global portfolio of renewable energy and energy efficiency projects, many of which are developed by ClimateCare's experts based around the world. The emissions reductions from all projects are independently verified and accredited under leading international standards such as GS VER, VCS and CDM and many bring huge benefits to people's health and welfare as well as helping to protect the climate. For more information please visit www.climatecare.org
Media Contacts:
Colette Campbell, +44-20-7325-7084, colette.c.campbell@jpmorgan.com
Michael Buick, +44-1865-207-012, press@climatecare.org
JPMorgan Chase (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion.
We operate in more than 60 countries.
We have 180,000 employees.
We serve millions of U.S. consumers and many of the world's most prominent corporate, institutional and government clients.
We are a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity.
We are a component of the Dow Jones Industrial Average.
Our corporate headquarters are in New York and our U.S. consumer and commercial banking headquarters are in Chicago.
Our brands
JPMorgan Chase is the brand used by:
The firm's subsidiaries,
Treasury Services and
Our Community Development Group.
JPMorgan clients include the world's most prominent corporations, governments, wealthy individuals and institutional investors. The following businesses use the JPMorgan brand:
Investment Bank
Asset Management
Worldwide Securities Services
Private Banking
Private Client Services
One Equity Partners
The U.S. consumer and commercial banking businesses serve customers under the Chase brand.
The consumer businesses include:
Credit card
Small business
Home finance and home equity loans
Auto finance
Education finance
Insurance
The commercial banking businesses include:
Middle Market
Corporate
Commercial Real Estate
Business Credit
Equipment Leasing
Community partnership
The brands JPMorgan Chase, JPMorgan and Chase are currently used in the marketplace to deliver community partnership capabilities around the world. Leadership in community partnership is part of the enduring culture of JPMorgan Chase.
JPMorgan offers expertise across wealth management disciplines to help clients advance towards their goals. As advisor to over 40% of the individuals on the Forbes Billionaires list* and the Forbes 400 Wealthiest Americans**, the insights JPMorgan brings to bear are the results of more than 160 years of experience helping individuals and their families grow, manage and sustain their wealth, to ultimately leave a lasting legacy. JPMorgan's wealth management solutions are provided through JPMorgan Private Bank and JPMorgan Private Client Services.
*JPMorgan has a relationship with over 40% of individuals on the Forbes Billionaires list in its established markets and excludes Japan, Germany and Russia (February 2005).
** As of September 2006.
Products and services, including fiduciary and custody products and services, are offered through JPMorgan Chase Bank, N.A. and its affiliates. Securities are offered by J.P. Morgan Securities Inc., member FINRA, NYSE and SIPC. J.P. Morgan Securities Inc. is an affiliate of JPMorgan Chase Bank, N.A.
Investment products: Not FDIC insured • No bank guarantee • May lose value
Please read the Legal Disclaimer in conjunction with these pages.
JPMorgan offers expertise across wealth management disciplines to help clients advance towards their goals. As advisor to over 40% of the individuals on the Forbes Billionaires list* and the Forbes 400 Wealthiest Americans**, the insights JPMorgan brings to bear are the results of more than 160 years of experience helping individuals and their families grow, manage and sustain their wealth, to ultimately leave a lasting legacy. JPMorgan's wealth management solutions are provided through JPMorgan Private Bank and JPMorgan Private Client Services.
*JPMorgan has a relationship with over 40% of individuals on the Forbes Billionaires list in its established markets and excludes Japan, Germany and Russia (February 2005).
** As of September 2006.
Products and services, including fiduciary and custody products and services, are offered through JPMorgan Chase Bank, N.A. and its affiliates. Securities are offered by J.P. Morgan Securities Inc., member FINRA, NYSE and SIPC. J.P. Morgan Securities Inc. is an affiliate of JPMorgan Chase Bank, N.A.
Investment products: Not FDIC insured • No bank guarantee • May lose value
Please read the Legal Disclaimer in conjunction with these pages.
JP Morgan Chase Bank N.A.
2696 South Colorado Blvd
Denver, Colorado 80222
contact: Cashin White, VP Business Banking
Chase Bank has been playing an integral role in the development of privately financed companies throughout the Colorado Front Range, whether the business was originally capitalized with VC funds, Private Equity, Angel Investors, or other sources. Chase has been able to fill the basic banking needs for these businesses as they mature by providing the most competitive cash management products, loans, and concierge level customer service.
For example, each business is assigned a small team of experts from Chase to focus on anticipating their needs and providing custom made solutions. By leveraging the services available through Chase Bank, the portfolio clients can obtain low cost financing on equipment, real estate, business acquisitions, and lines of credit; high returns on their investments, and increase the efficiency of their cash flow cycle. Couple the products with state-of-the-art technology, on-line capabilities, and local bankers with a large branch presence, and the team aspect of our business service becomes apparent.
As Chase Bank aids in the growth and success of the portfolio clients, the benefits are not only realized on the bottom-line of the business, but within the partnering Venture Capital company, and ultimately throughout the Colorado economy.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com
Media Contact:
JPMorgan - Pam Snook Tel: 212-270-7013, Email: pamela.v.snook@jpmchase.com
JPMorgan Private Equity Fund Services Launches DealVault Technology
New system tracks private equity investments valuation, risk and exposure globally
New York, April 1, 2008 - JPMorgan today announced the launch of DealVault, a new technology that tracks private equity investments valuations, performance, risk and exposure analysis globally.
JPMorgan Private Equity Fund Services (PEFS) developed DealVault to provide CFOs, deal and investor relations professionals with an advanced platform to centralize volumes of deal tracking information. DealVault integrates with accounting and back office systems, providing private equity investment professionals with one platform to administer every aspect of a private equity investment's lifecycle.
DealVault arms private equity investment professionals with new tools to:
Store portfolio company information in a web-based solution accessible globally
Package information in a robust, audit-controlled environment favored by auditors
Facilitate ongoing independent reviews valuations, performance against investment thesis and trend analysis
Reduce time spent aggregating and reconciling volumes of data tracking data
"As a top-tier private equity firm, we must utilize the most advanced, efficient and strategic technology platforms available, DealVault is all of these things wrapped into one," said Marc Unger, Chief Operating Officer of CCMP Capital.
James Hutter, Global Business Executive of JPMorgan PEFS, said: "DealVault is the industrial strength tool the private equity investment industry has been waiting for, particularly given valuation concerns in today's volatile market. The industry now has a dynamic, efficient and fully integrated solution that provides the controls and security that deal professionals and financial executives need."
JPMorgan PEFS provides a full suite of administration services to private equity investment firms, real estate firms and institutional investors. JPMorgan PEFS, which premiered in 2005, was ranked as Top Rated Firm Overall for Private Equity Administration by private equity firms in a recent global industry survey.
JPMorgan PEFS currently services more than 200 funds representing $50 billion in committed capital, and serves the world's largest and most sophisticated institutional investors with $110 billion in aggregate committed capital across thousands of private equity investments. PEFS has more than 160 professionals, with decades of experience, and locations in New York, London, Sydney, San Francisco, Chicago and Dallas.
For more information on JPMorgan Private Equity Fund Services go to www.jpmorgan.com/visit/PEFS
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com
Media Contact:
JPMorgan - Pam Snook Tel: 212-270-7013, Email: pamela.v.snook@jpmchase.com
JPMorgan to Acquire ClimateCare e-mail print Mar 26, 2008
Combination will create a leading market-maker in carbon emission reductions
London, March 26, 2008 - JPMorgan through its investment bank, and ClimateCare, a pioneer in carbon emission reductions, announced today that they will join forces in an acquisition to invest in quality, large-scale carbon emission reduction projects and to advance the development of a liquid financial market that trades in carbon emission reduction credits.
Upon closing of the transaction, expected sometime in the second quarter, ClimateCare will be integrated into JPMorgan's existing world class Environmental Markets group. The combined group will originate carbon emission reduction projects globally and trade the carbon emission reduction credits generated by the projects in the compliance and voluntary markets.
The group will initially operate under the JPMorgan and ClimateCare brand names.
Blythe Masters, head of Commodities at JPMorgan, said: "Clients are seeking to reduce their emissions both due to regulations and out of social responsibility. This transaction positions JPMorgan to offer the highest-quality advice and execution in emerging carbon emissions markets."
She continued: "A big challenge needs a big approach. It is fitting that a first tier financial institution like JPMorgan is now backing the pioneering work of ClimateCare."
Mike Mason, founder of ClimateCare, said: "After building up this business for over a decade, becoming part of JPMorgan is exactly what ClimateCare needs in order to grow rapidly and achieve its goal of having the biggest impact possible in tackling climate change."
He continued: "Together with JPMorgan, ClimateCare can now deliver its expertise on a truly global scale, and work with hundreds of major partners around the world to facilitate the roll-out of low-carbon technologies at the scale and pace required to make a genuine difference to our environment."
JPMorgan and ClimateCare anticipate originating projects that will materially increase ClimateCare's capacity to reduce carbon emissions.
Financial terms of the acquisition were not disclosed.
JPMorgan and ClimateCare affirmed their commitment to adopting and promoting universal standards to measure the impact of carbon emission reduction projects in the voluntary market. Universal standards will promote much needed transparency and liquidity in carbon emissions trading.
All projects originated by the group will continue to be subject to JPMorgan and ClimateCare's strict independent verification procedures to ensure compliance with stated carbon emission reduction goals. Also, as part of the acquisition, ClimateCare's project sourcing arm, Pioneer Carbon, will become part of the newly combined business.
ClimateCare's acquisition represents a new milestone in JPMorgan's ongoing investment in its Commodities business. In 2007, JPMorgan hired over 50 new marketing, sales and trading professionals in Commodities and will hire as least as many in 2008.
JPMorgan adopted a comprehensive environmental policy in 2005 that includes a strong commitment to addressing climate change by reducing its carbon emissions and working with its clients to do so in their business activities. For example, the firm recently helped to create the Carbon Principles, a multi-stakeholder engagement to address the risk of carbon in the U.S. power sector.
# # #
About JPMorgan
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase has its corporate headquarters in New York and its U.S. retail financial services and commercial banking headquarters in Chicago. Under its JPMorgan and Chase brands, the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients.
About ClimateCare
ClimateCare is a world leading carbon offset provider, founded in 1997, making reductions of greenhouse gases such as co2 on behalf of individuals and companies.
These reductions are made through originating and investing in a global portfolio of renewable energy and energy efficiency projects, many of which are developed by ClimateCare's experts based around the world. The emissions reductions from all projects are independently verified and accredited under leading international standards such as GS VER, VCS and CDM and many bring huge benefits to people's health and welfare as well as helping to protect the climate. For more information please visit www.climatecare.org
Media Contacts:
Colette Campbell, +44-20-7325-7084, colette.c.campbell@jpmorgan.com
Michael Buick, +44-1865-207-012, press@climatecare.org
JPMorgan Chase (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion.
We operate in more than 60 countries.
We have 180,000 employees.
We serve millions of U.S. consumers and many of the world's most prominent corporate, institutional and government clients.
We are a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity.
We are a component of the Dow Jones Industrial Average.
Our corporate headquarters are in New York and our U.S. consumer and commercial banking headquarters are in Chicago.
Our brands
JPMorgan Chase is the brand used by:
The firm's subsidiaries,
Treasury Services and
Our Community Development Group.
JPMorgan clients include the world's most prominent corporations, governments, wealthy individuals and institutional investors. The following businesses use the JPMorgan brand:
Investment Bank
Asset Management
Worldwide Securities Services
Private Banking
Private Client Services
One Equity Partners
The U.S. consumer and commercial banking businesses serve customers under the Chase brand.
The consumer businesses include:
Credit card
Small business
Home finance and home equity loans
Auto finance
Education finance
Insurance
The commercial banking businesses include:
Middle Market
Corporate
Commercial Real Estate
Business Credit
Equipment Leasing
Community partnership
The brands JPMorgan Chase, JPMorgan and Chase are currently used in the marketplace to deliver community partnership capabilities around the world. Leadership in community partnership is part of the enduring culture of JPMorgan Chase.
JPMorgan offers expertise across wealth management disciplines to help clients advance towards their goals. As advisor to over 40% of the individuals on the Forbes Billionaires list* and the Forbes 400 Wealthiest Americans**, the insights JPMorgan brings to bear are the results of more than 160 years of experience helping individuals and their families grow, manage and sustain their wealth, to ultimately leave a lasting legacy. JPMorgan's wealth management solutions are provided through JPMorgan Private Bank and JPMorgan Private Client Services.
*JPMorgan has a relationship with over 40% of individuals on the Forbes Billionaires list in its established markets and excludes Japan, Germany and Russia (February 2005).
** As of September 2006.
Products and services, including fiduciary and custody products and services, are offered through JPMorgan Chase Bank, N.A. and its affiliates. Securities are offered by J.P. Morgan Securities Inc., member FINRA, NYSE and SIPC. J.P. Morgan Securities Inc. is an affiliate of JPMorgan Chase Bank, N.A.
Investment products: Not FDIC insured • No bank guarantee • May lose value
Please read the Legal Disclaimer in conjunction with these pages.
JPMorgan offers expertise across wealth management disciplines to help clients advance towards their goals. As advisor to over 40% of the individuals on the Forbes Billionaires list* and the Forbes 400 Wealthiest Americans**, the insights JPMorgan brings to bear are the results of more than 160 years of experience helping individuals and their families grow, manage and sustain their wealth, to ultimately leave a lasting legacy. JPMorgan's wealth management solutions are provided through JPMorgan Private Bank and JPMorgan Private Client Services.
*JPMorgan has a relationship with over 40% of individuals on the Forbes Billionaires list in its established markets and excludes Japan, Germany and Russia (February 2005).
** As of September 2006.
Products and services, including fiduciary and custody products and services, are offered through JPMorgan Chase Bank, N.A. and its affiliates. Securities are offered by J.P. Morgan Securities Inc., member FINRA, NYSE and SIPC. J.P. Morgan Securities Inc. is an affiliate of JPMorgan Chase Bank, N.A.
Investment products: Not FDIC insured • No bank guarantee • May lose value
Please read the Legal Disclaimer in conjunction with these pages.
Three Convicted National Century Execs Kept In Jail,
Three Convicted National Century Execs Kept In Jail, One Released On Bond
April 18, 2008 in Health Fraud, Securities Fraud by Dave Westheimer | No comments
After a hearing in Columbus that lasted all day Wednesday, US District Judge Algenon Marbley ruled that convicted National Century Financial Enterprises executives Donald Ayers, Randolph Speer and Roger Faulkenberry were flight risks and will remain in custody. The fourth, James Dierker was released on bond pending sentencing. The four executives and a fifth, company co-founder Rebecca Parrett, were convicted on March 13 of securities fraud and related charges in connection with the company’s 2002 collapse (here and earlier). All were allowed to remain free on bond with electronic monitoring, but Parrett disappeared (here) and remains at large. The other four were taken into custody on April 2 following disclosure of an alleged plot to escape to Aruba (here and here). Dierker currently works in marketing for Victoria’s Secret, and testimony from the company’s president and CEO Sharen Turney apparently helped convince Judge Marbley that Dierker would not flee (Columbus Business First, AP).
Meanwhile, the US Marshal Service is offering a reward for information leading to the arrest of Parrett — but won’t say how much the reward is (Columbus Dispatch).
April 18, 2008 in Health Fraud, Securities Fraud by Dave Westheimer | No comments
After a hearing in Columbus that lasted all day Wednesday, US District Judge Algenon Marbley ruled that convicted National Century Financial Enterprises executives Donald Ayers, Randolph Speer and Roger Faulkenberry were flight risks and will remain in custody. The fourth, James Dierker was released on bond pending sentencing. The four executives and a fifth, company co-founder Rebecca Parrett, were convicted on March 13 of securities fraud and related charges in connection with the company’s 2002 collapse (here and earlier). All were allowed to remain free on bond with electronic monitoring, but Parrett disappeared (here) and remains at large. The other four were taken into custody on April 2 following disclosure of an alleged plot to escape to Aruba (here and here). Dierker currently works in marketing for Victoria’s Secret, and testimony from the company’s president and CEO Sharen Turney apparently helped convince Judge Marbley that Dierker would not flee (Columbus Business First, AP).
Meanwhile, the US Marshal Service is offering a reward for information leading to the arrest of Parrett — but won’t say how much the reward is (Columbus Dispatch).
Reward offered for missing National Century exec
GEEZ.......Should we wasit to see the "OTHER" executive flee the country?
Reward offered for missing National Century exec
Thursday, April 17, 2008 8:34 PM
By Jodi Andes
THE COLUMBUS DISPATCH
A reward is being offered for information leading to the arrest of former National Century Financial Enterprises executive Rebecca S. Parrett.
On March 13, Parrett was convicted in U.S. District Court in Columbus of securities fraud, money laundering and other charges related to the collapse of Dublin-based National Century.
Federal Judge Algenon L. Marbley allowed Parrett to return to her home in Arizona, where she was to be on house arrest pending sentencing. An arrest warrant was issued after she didn't show up by March 26 to be fitted for an electronic monitor.
The U.S. Marshal Service is offering the reward but won't say how much it is. Anyone with information is asked to call 614-469-5540.
Parrett has health-related issues and a parrot tattoo on her left arm.
jandes@dispatch.com
Reward offered for missing National Century exec
Thursday, April 17, 2008 8:34 PM
By Jodi Andes
THE COLUMBUS DISPATCH
A reward is being offered for information leading to the arrest of former National Century Financial Enterprises executive Rebecca S. Parrett.
On March 13, Parrett was convicted in U.S. District Court in Columbus of securities fraud, money laundering and other charges related to the collapse of Dublin-based National Century.
Federal Judge Algenon L. Marbley allowed Parrett to return to her home in Arizona, where she was to be on house arrest pending sentencing. An arrest warrant was issued after she didn't show up by March 26 to be fitted for an electronic monitor.
The U.S. Marshal Service is offering the reward but won't say how much it is. Anyone with information is asked to call 614-469-5540.
Parrett has health-related issues and a parrot tattoo on her left arm.
jandes@dispatch.com
Monday, April 21, 2008
Lance K. Poulsen was in a holding cell at the courthouse
National Century
Judge lets one convict out of jail
Wednesday, April 16, 2008 11:06 PM
By Jodi Andes
THE COLUMBUS DISPATCH
An admitted bank robber's story about former National Century executives' plans to escape to Aruba was so detailed that a federal judge said he couldn't risk letting them all go free on bond again.
But James E. Dierker Jr., National Century Financial Enterprise's former marketing director, is different, federal Judge Algenon L. Marbley said.
Dierker wasn't as high-ranking as the other convicts, nor as culpable in the company's fraud, the judge said. And Dierker could prove that he had not talked to the others from the time he left National Century in November 2002 until seeing them again in court.
“I'm also persuaded by the 100 letters sent in (to the court) that show he is tied to the community,” Marbley said after a nine-hour hearing today.
So Dierker will be allowed out. Family, friends and Victoria's Secret co-workers who wrote the letters packed the courtroom and wept and hugged one another at the news.
Meanwhile, former National Century executives Donald H. Ayers, Roger S. Faulkenberry and Randolph Speer will remain in the Franklin County jail. Today, they broke their silence and took the stand for the first time, saying there never was an escape plan.
Company founder Lance K. Poulsen was in a holding cell at the courthouse and could have denied making claims of an escape plan, but he was never called.
Dierker's freedom is temporary.
The Powell man is expected to be incarcerated after sentencing in late spring or early summer.
The whereabouts of another co-defendant, Rebecca S. Parrett, remain unknown. She never showed up in Arizona, where she was allowed to return for house arrest, in late March. That, coupled with claims by Robert Cihy, changed everything for the others, Marbley said.
Cihy, the admitted bank robber and crack-cocaine user, also testified today. In the end, Cihy's testimony proved more credible than Ayers', the judge said.
Cihy said he and Poulsen bonded while they sat in neighboring cells in the Ross County jail. Both were “anti-government,” and Poulsen boasted that Cihy should view him as a hero because National Century's $1.9 billion loss of investors' funds “messed up pension funds of police officers.”
He said Poulsen told him about an escape plan hatched by him and the other defendants, using a cruise ship and getting off in Aruba. Parrett's escape “put a kink in those plans,” Cihy said.
Ayers wasn't as believable because he had lied before, about not having a safe in his home where he had hidden a substantial amount of money, Assistant U.S. Attorney Doug Squires said.
And Ayers also removed $800,000 from a bank account after being convicted, the judge noted. The money was for past and future legal fees, he said.
Judge lets one convict out of jail
Wednesday, April 16, 2008 11:06 PM
By Jodi Andes
THE COLUMBUS DISPATCH
An admitted bank robber's story about former National Century executives' plans to escape to Aruba was so detailed that a federal judge said he couldn't risk letting them all go free on bond again.
But James E. Dierker Jr., National Century Financial Enterprise's former marketing director, is different, federal Judge Algenon L. Marbley said.
Dierker wasn't as high-ranking as the other convicts, nor as culpable in the company's fraud, the judge said. And Dierker could prove that he had not talked to the others from the time he left National Century in November 2002 until seeing them again in court.
“I'm also persuaded by the 100 letters sent in (to the court) that show he is tied to the community,” Marbley said after a nine-hour hearing today.
So Dierker will be allowed out. Family, friends and Victoria's Secret co-workers who wrote the letters packed the courtroom and wept and hugged one another at the news.
Meanwhile, former National Century executives Donald H. Ayers, Roger S. Faulkenberry and Randolph Speer will remain in the Franklin County jail. Today, they broke their silence and took the stand for the first time, saying there never was an escape plan.
Company founder Lance K. Poulsen was in a holding cell at the courthouse and could have denied making claims of an escape plan, but he was never called.
Dierker's freedom is temporary.
The Powell man is expected to be incarcerated after sentencing in late spring or early summer.
The whereabouts of another co-defendant, Rebecca S. Parrett, remain unknown. She never showed up in Arizona, where she was allowed to return for house arrest, in late March. That, coupled with claims by Robert Cihy, changed everything for the others, Marbley said.
Cihy, the admitted bank robber and crack-cocaine user, also testified today. In the end, Cihy's testimony proved more credible than Ayers', the judge said.
Cihy said he and Poulsen bonded while they sat in neighboring cells in the Ross County jail. Both were “anti-government,” and Poulsen boasted that Cihy should view him as a hero because National Century's $1.9 billion loss of investors' funds “messed up pension funds of police officers.”
He said Poulsen told him about an escape plan hatched by him and the other defendants, using a cruise ship and getting off in Aruba. Parrett's escape “put a kink in those plans,” Cihy said.
Ayers wasn't as believable because he had lied before, about not having a safe in his home where he had hidden a substantial amount of money, Assistant U.S. Attorney Doug Squires said.
And Ayers also removed $800,000 from a bank account after being convicted, the judge noted. The money was for past and future legal fees, he said.
Friday, April 18, 2008
$1.9 billion fraud ....guess it is not trillion so why pay attention?
Getaway plan
Five executives convicted in a $1.9 billion fraud had planned to flee on a cruise ship to Aruba, an FBI agent testified Wednesday. One of the executives has disappeared, but the judge in the case will decide whether the four executives now in custody should be freed from jail before they are sentenced for their part in the scheme at National Century Financial Enterprises.
Five executives convicted in a $1.9 billion fraud had planned to flee on a cruise ship to Aruba, an FBI agent testified Wednesday. One of the executives has disappeared, but the judge in the case will decide whether the four executives now in custody should be freed from jail before they are sentenced for their part in the scheme at National Century Financial Enterprises.
Plotting to flee the country ... via cruise ship.
April 17, 2008
Fleeing the Country on a Cruise Ship: Not a Good Idea
On April 16, a federal judge ordered three defendants convicted in a corporate fraud case to remain in jail while awaiting sentencing. The reason? They were possibly plotting to flee the country ... via cruise ship.
Five executives of the now-defunct National Century Financial Enterprises, a health care financing company, were convicted March 13 in a scheme to defraud their investors. The judge had originally allowed the group to remain free until sentencing. But one of the executives disappeared last month and has yet to be located. A second was not deemed a flight risk.
However, the other three may have been plotting to escape on a cruise ship. A confidential informant gave testimony about a conversation he had with National Century's founder, Lance Poulsen, when they were both in jail. He claims that Poulsen explained how someone can enter a Caribbean island without a passport if he or she arrives via cruise ship. Given that the three remaining defendants may have been in communication with Paulsen and they did not testify that they weren't part of a conspiracy to flee the country, the judge ordered the men to remain in jail.
It is true that you don't need a passport to go on a Caribbean cruise from a U.S. homeport. However, that doesn't mean the government doesn't know where you are. Ship manifests are given to U.S. Customs and Border Protection, who review the list of passengers and crew and check for outstanding warrants and other red flags. If necessary, the government agency can work with foreign governments to have wanted criminals arrested prior to their return to U.S. shores. And passengers without passports still have to show birth certificates and government-issued ID cards.
Given the recent number of arrests of wanted criminals and drug smugglers onboard cruise ships (in February, a murder suspect was snared on Carnival's Celebration, and just this month there was a drug bust on Royal Caribbean's Brilliance of the Seas), we'd have to say the system is working pretty well.
http://www.cruisecritic.com/news/news.cfm?ID=2521
Fleeing the Country on a Cruise Ship: Not a Good Idea
On April 16, a federal judge ordered three defendants convicted in a corporate fraud case to remain in jail while awaiting sentencing. The reason? They were possibly plotting to flee the country ... via cruise ship.
Five executives of the now-defunct National Century Financial Enterprises, a health care financing company, were convicted March 13 in a scheme to defraud their investors. The judge had originally allowed the group to remain free until sentencing. But one of the executives disappeared last month and has yet to be located. A second was not deemed a flight risk.
However, the other three may have been plotting to escape on a cruise ship. A confidential informant gave testimony about a conversation he had with National Century's founder, Lance Poulsen, when they were both in jail. He claims that Poulsen explained how someone can enter a Caribbean island without a passport if he or she arrives via cruise ship. Given that the three remaining defendants may have been in communication with Paulsen and they did not testify that they weren't part of a conspiracy to flee the country, the judge ordered the men to remain in jail.
It is true that you don't need a passport to go on a Caribbean cruise from a U.S. homeport. However, that doesn't mean the government doesn't know where you are. Ship manifests are given to U.S. Customs and Border Protection, who review the list of passengers and crew and check for outstanding warrants and other red flags. If necessary, the government agency can work with foreign governments to have wanted criminals arrested prior to their return to U.S. shores. And passengers without passports still have to show birth certificates and government-issued ID cards.
Given the recent number of arrests of wanted criminals and drug smugglers onboard cruise ships (in February, a murder suspect was snared on Carnival's Celebration, and just this month there was a drug bust on Royal Caribbean's Brilliance of the Seas), we'd have to say the system is working pretty well.
http://www.cruisecritic.com/news/news.cfm?ID=2521
Sunday, April 13, 2008
“This case is one of the largest corporate fraud investigations
PTC man tagged for $3 billion corporate fraud
Fri, 04/11/2008 - 4:29pmBy: John Munford
Feds: Speer arrested after escape plan to Aruba was hatched
A Peachtree City man convicted of participating in a $3 billion securities fraud scheme has been placed in custody after federal officials learned he and three co-defendants were planning to escape to Aruba, federal officials said.
Randolph H. Speer, 58, was the chief financial officer for National Century Financial Enterprises and he was convicted by a federal jury in Ohio March 13 for conspiracy, securities fraud, wire fraud and money laundering.
The company, based in Dublin, Ohio, was one of the largest healthcare finance companies in the country before it filed for bankruptcy in November 2002.
Speer and four other defendants schemed to deceive investors about the company’s financial health, according to the U.S. Attorney’s Office in Ohio. Their convictions came after a six-week trial on the matter, though the jury deliberated less than two days before finding all five defendants guilty.
While Speer and three other defendants were caught after officials got word of their plans to flee to Aruba, the fifth defendant, Rebecca S. Parent, 59, of Carefree, Ariz. cannot be located, U.S. Attorney’s officials said.
At trial, evidence showed that NCFE concealed shortfalls by moving money back and forth between accounts, fabricating data in investor reports, incorporating false information into the accounting system and making other false statements to investors and rating agencies, officials said.
Between May 1998 and may 2001, NCFE sold notes to investors worth a total of $4.4 billion, but they were worth approximately six cents on the dollar at the time the bankruptcy was filed in November 2002, officials said.
Speer faces up to 140 years in prison and $4.25 million in fines, officials said.
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division. “The FBI continues to leverage its corporate fraud expertise gained through large-scale investigations such as Enron and WorldCom, to ensure that corporations represent their true health. From Dublin, Ohio, to Houston, Texas to New York, New York, the message is clear that the FBI will not stand by as corporate executives manipulate their financial statements and conceal illegal activities from criminal and regulatory authorities.”The case was prosecuted by the U.S. Attorney’s Office in Ohio with assistance from the Federal Bureau of Investigation, the Internal Revenue Service, U.S. postal inspectors and the U.S. Immigrations and Customs Enforcement agency.
Fri, 04/11/2008 - 4:29pmBy: John Munford
Feds: Speer arrested after escape plan to Aruba was hatched
A Peachtree City man convicted of participating in a $3 billion securities fraud scheme has been placed in custody after federal officials learned he and three co-defendants were planning to escape to Aruba, federal officials said.
Randolph H. Speer, 58, was the chief financial officer for National Century Financial Enterprises and he was convicted by a federal jury in Ohio March 13 for conspiracy, securities fraud, wire fraud and money laundering.
The company, based in Dublin, Ohio, was one of the largest healthcare finance companies in the country before it filed for bankruptcy in November 2002.
Speer and four other defendants schemed to deceive investors about the company’s financial health, according to the U.S. Attorney’s Office in Ohio. Their convictions came after a six-week trial on the matter, though the jury deliberated less than two days before finding all five defendants guilty.
While Speer and three other defendants were caught after officials got word of their plans to flee to Aruba, the fifth defendant, Rebecca S. Parent, 59, of Carefree, Ariz. cannot be located, U.S. Attorney’s officials said.
At trial, evidence showed that NCFE concealed shortfalls by moving money back and forth between accounts, fabricating data in investor reports, incorporating false information into the accounting system and making other false statements to investors and rating agencies, officials said.
Between May 1998 and may 2001, NCFE sold notes to investors worth a total of $4.4 billion, but they were worth approximately six cents on the dollar at the time the bankruptcy was filed in November 2002, officials said.
Speer faces up to 140 years in prison and $4.25 million in fines, officials said.
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division. “The FBI continues to leverage its corporate fraud expertise gained through large-scale investigations such as Enron and WorldCom, to ensure that corporations represent their true health. From Dublin, Ohio, to Houston, Texas to New York, New York, the message is clear that the FBI will not stand by as corporate executives manipulate their financial statements and conceal illegal activities from criminal and regulatory authorities.”The case was prosecuted by the U.S. Attorney’s Office in Ohio with assistance from the Federal Bureau of Investigation, the Internal Revenue Service, U.S. postal inspectors and the U.S. Immigrations and Customs Enforcement agency.
Friday, April 11, 2008
Interesting perspective on what went wrong.
April 10, 2008
JPMorgan Pays for Fiduciary Obligation Oversights
JPMorgan Chase agreed to pay nearly $2 million in disgorgement and interest to settle SEC charges it and Bank One Corporation (which JPMorgan Chase acquired in 2004), had been negligent in their conduct as asset-backed indenture trustees. They failed to pick up on improprieties carried out by a financing company that subsequently led to its collapse and investor losses of approximately $2.6 billion.
National Century Financial Enterprises was a privately-held Ohio corporation that is now defunct. During the relevant period, from 1999 through 2002, National organized and owned several special-purpose subsidiary programs - and sold nearly $3.5 billion of these programs' asset-backed notes to qualified institutional buyers (QIBs). According to private placement memoranda, National represented to investors that the proceeds of the note offerings would be used primarily for the purchase of health account receivables, and that the programs would maintain specified balances for 2 separate reserve accounts and an Equity Account that would be held by the indenture trustees (JPMorgan and Bank One).
What Went Wrong. National used a substantial portion of the private placement proceeds and Reserve Account funds to make either unsecured loans or loans secured by collateral other than healthcare account receivables, contrary to National's representations and contrary to the requirements of the master trust indentures that governed National's note offerings. A principal feature of the scheme that allow National to hide investor losses was to transfer huge amounts of Reserve Account funds on or around the first and last business day of every month. The indentures required that the programs maintain Specified Balances in the Reserve Accounts totaling about 17% of the value of the outstanding notes issued by the programs.
However, even though the indenture trustees for the programs had the ability to look at the balances in the Reserve Accounts at any time, the indentures only required the program to report on the balances in the Reserve Accounts as of one day of the month, called the "Monthly Payment Date." And JPMorgan Chase, a trustee for one large program, chose to test the balances as of the last business day of the month; Bank One, a trustee for another large program, chose to test as of the first business of the month. As a result of this testing methodology, National was able to "kite" large amounts of funds back and forth between the programs, making it appear that the programs were maintaining the Specified Balances - which they weren't. In fact, National was consistently and severely depleting the balances without telling investors.
At the instruction of National, Bank One and JPMorgan Chase made Reserve Account transfers that contradicted National's representations to investors about how the Reserve Accounts would be used and contravened the requirements of the indentures. [SEC Securities Act of '33 Release 8906, 3/27]
http://complianceinsights.typepad.com/what_went_wrong/2008/04/jpmorgan-pays-f.html
April 10, 2008
JPMorgan Pays for Fiduciary Obligation Oversights
JPMorgan Chase agreed to pay nearly $2 million in disgorgement and interest to settle SEC charges it and Bank One Corporation (which JPMorgan Chase acquired in 2004), had been negligent in their conduct as asset-backed indenture trustees. They failed to pick up on improprieties carried out by a financing company that subsequently led to its collapse and investor losses of approximately $2.6 billion.
National Century Financial Enterprises was a privately-held Ohio corporation that is now defunct. During the relevant period, from 1999 through 2002, National organized and owned several special-purpose subsidiary programs - and sold nearly $3.5 billion of these programs' asset-backed notes to qualified institutional buyers (QIBs). According to private placement memoranda, National represented to investors that the proceeds of the note offerings would be used primarily for the purchase of health account receivables, and that the programs would maintain specified balances for 2 separate reserve accounts and an Equity Account that would be held by the indenture trustees (JPMorgan and Bank One).
What Went Wrong. National used a substantial portion of the private placement proceeds and Reserve Account funds to make either unsecured loans or loans secured by collateral other than healthcare account receivables, contrary to National's representations and contrary to the requirements of the master trust indentures that governed National's note offerings. A principal feature of the scheme that allow National to hide investor losses was to transfer huge amounts of Reserve Account funds on or around the first and last business day of every month. The indentures required that the programs maintain Specified Balances in the Reserve Accounts totaling about 17% of the value of the outstanding notes issued by the programs.
However, even though the indenture trustees for the programs had the ability to look at the balances in the Reserve Accounts at any time, the indentures only required the program to report on the balances in the Reserve Accounts as of one day of the month, called the "Monthly Payment Date." And JPMorgan Chase, a trustee for one large program, chose to test the balances as of the last business day of the month; Bank One, a trustee for another large program, chose to test as of the first business of the month. As a result of this testing methodology, National was able to "kite" large amounts of funds back and forth between the programs, making it appear that the programs were maintaining the Specified Balances - which they weren't. In fact, National was consistently and severely depleting the balances without telling investors.
At the instruction of National, Bank One and JPMorgan Chase made Reserve Account transfers that contradicted National's representations to investors about how the Reserve Accounts would be used and contravened the requirements of the indentures. [SEC Securities Act of '33 Release 8906, 3/27]
http://complianceinsights.typepad.com/what_went_wrong/2008/04/jpmorgan-pays-f.html
Thursday, April 10, 2008
Valley fugitive may be hiding out ......to avoid a hefty prison sentence for fraud
Fugitive businesswoman may head to Aruba
by Melissa Blasius - Apr. 8, 2008 10:43 PM
12 News
A Valley fugitive may be hiding out on a resort island to avoid a hefty prison sentence for fraud. Rebecca Parrett, 59, disappeared while awaiting sentencing on a $2-billion dollar scheme.
She worked for National Century Financial Enterprises, which sold health care bonds to investors including several Arizona cities. Last month, a federal jury in Ohio convicted Parrett on conspiracy, securities and wire fraud, and money laundering.
Parrett, who owned a 6,000-square-foot Carefree mansion and a home in Fountain Hills, returned to Arizona on bond to await sentencing. Deputy U.S. Marshal Matt Hershey says she disappeared before a pretrial services officer went to visit her home at the end of March. Parrett's husband claimed she had gone to Sedona two weeks prior and hasn't been seen since, according to Hershey.
Federal court records indicate a confidential informant told the FBI last week the co-defendants, including Parrett, planned to meet in Aruba after the conviction. Her four co-defendants have since been arrested. If you see Rebecca Parrett, you are urged to call U.S. Marshals.
by Melissa Blasius - Apr. 8, 2008 10:43 PM
12 News
A Valley fugitive may be hiding out on a resort island to avoid a hefty prison sentence for fraud. Rebecca Parrett, 59, disappeared while awaiting sentencing on a $2-billion dollar scheme.
She worked for National Century Financial Enterprises, which sold health care bonds to investors including several Arizona cities. Last month, a federal jury in Ohio convicted Parrett on conspiracy, securities and wire fraud, and money laundering.
Parrett, who owned a 6,000-square-foot Carefree mansion and a home in Fountain Hills, returned to Arizona on bond to await sentencing. Deputy U.S. Marshal Matt Hershey says she disappeared before a pretrial services officer went to visit her home at the end of March. Parrett's husband claimed she had gone to Sedona two weeks prior and hasn't been seen since, according to Hershey.
Federal court records indicate a confidential informant told the FBI last week the co-defendants, including Parrett, planned to meet in Aruba after the conviction. Her four co-defendants have since been arrested. If you see Rebecca Parrett, you are urged to call U.S. Marshals.
Tuesday, April 8, 2008
Which LIAR do you wish to BELIEVE?
Monday, April 7, 2008 - 3:50 PM EDT
Poulsen says informant against National Century execs is lyingBusiness First of Columbus - by Kevin Kemper Business First
An alleged plot hatched by convicted National Century Financial Enterprises Inc. executives to flee the country did not come from Lance Poulsen, the former CEO claims in a new court filing.
Attorneys for Randolph Speer, the former chief financial officer of the defunct, Dublin-based company, charged in a filing in U.S. District Court in Columbus Friday that a government informant made up the story of the escape plot to reduce his time in prison.
"First and foremost, Mr. Speer vehemently and unequivocally denies any knowledge or participation in any such plot," the filing says. "Yet, he has been forcibly removed from his family and deprived of his liberty with the false utterances of an informant who has a clear motive to lie."
Government prosecutors said April 2 that they heard from an informant, who they said heard the tale from Poulsen, that National Century executives were planning to flee to Aruba if they were ever convicted of fraud. That information led U.S. District Court Judge Algenon L. Marbley to issue arrest warrants for the 57-year-old Speer, Donald H. Ayers, 71; James Dierker, 40; and Roger Faulkenberry, 46. The four were out on bail after being convicted of conspiracy and securities fraud March 13. They were all taken into custody.
A letter included in Speer's filing from Peter Anderson, one of Poulsen's attorneys, argues the arrests were unfounded.
"Mr. Poulsen believes that (Robert Cihy) is the 'confidential informant' that the United States referenced in its motion," Anderson said.
Cihy, Anderson said, is an inmate in the Ross County Jail where Poulsen is incarcerated. Cihy allegedly told Poulsen that federal agents asked him to "get close" to Poulsen to find out information. The letter says Cihy was told that the government believes the National Century executives had a plan to flee the country, and the agents wanted Cihy to find out information about the plan.
The government indicted Cihy in March on charges of engaging in a nine-day robbery spree of Central Ohio retail stores. He reached a plea agreement with the government on April 3, a day after Speer, Ayers, Dierker and Faulkenberry were arrested.
Assistant U.S. Attorney Douglas Squires, who ran the prosecutions of all the executives, said he could not comment on Speer's filing because the government's source is confidential.
Attorneys for the convicted executives asked Marbley to compel the government to disclose its source, but Marbley denied the motion Monday.
An arrest warrant for a fifth National Century executive, 58-year-old Rebecca Parrett, remains outstanding. Police are searching for Parrett, the company's former treasurer and co-founder, after she failed to show up for an appointment with a court officer in Arizona where she was to await sentencing. Her whereabouts remain unknown.
A jury found the five executives guilty of running a multiyear fraud at National Century, which collapsed into bankruptcy six years ago, resulting in as much as $3 billion in investor funds going missing. They each face prison sentences of 20 to 55 years.
Marbley allowed the five executives to remain under house arrest until their sentencing on the condition they would be placed on electronic monitoring. Parrett never received a monitoring device.
Poulsen is scheduled to be tried on similar fraud charges this summer. He and a friend, Karl Demmler, were convicted March 26 on witness tampering charges stemming from claims they tried to bribe a key government witness scheduled to testify in Poulsen's trial. The two men are in custody awaiting sentencing.
Poulsen says informant against National Century execs is lyingBusiness First of Columbus - by Kevin Kemper Business First
An alleged plot hatched by convicted National Century Financial Enterprises Inc. executives to flee the country did not come from Lance Poulsen, the former CEO claims in a new court filing.
Attorneys for Randolph Speer, the former chief financial officer of the defunct, Dublin-based company, charged in a filing in U.S. District Court in Columbus Friday that a government informant made up the story of the escape plot to reduce his time in prison.
"First and foremost, Mr. Speer vehemently and unequivocally denies any knowledge or participation in any such plot," the filing says. "Yet, he has been forcibly removed from his family and deprived of his liberty with the false utterances of an informant who has a clear motive to lie."
Government prosecutors said April 2 that they heard from an informant, who they said heard the tale from Poulsen, that National Century executives were planning to flee to Aruba if they were ever convicted of fraud. That information led U.S. District Court Judge Algenon L. Marbley to issue arrest warrants for the 57-year-old Speer, Donald H. Ayers, 71; James Dierker, 40; and Roger Faulkenberry, 46. The four were out on bail after being convicted of conspiracy and securities fraud March 13. They were all taken into custody.
A letter included in Speer's filing from Peter Anderson, one of Poulsen's attorneys, argues the arrests were unfounded.
"Mr. Poulsen believes that (Robert Cihy) is the 'confidential informant' that the United States referenced in its motion," Anderson said.
Cihy, Anderson said, is an inmate in the Ross County Jail where Poulsen is incarcerated. Cihy allegedly told Poulsen that federal agents asked him to "get close" to Poulsen to find out information. The letter says Cihy was told that the government believes the National Century executives had a plan to flee the country, and the agents wanted Cihy to find out information about the plan.
The government indicted Cihy in March on charges of engaging in a nine-day robbery spree of Central Ohio retail stores. He reached a plea agreement with the government on April 3, a day after Speer, Ayers, Dierker and Faulkenberry were arrested.
Assistant U.S. Attorney Douglas Squires, who ran the prosecutions of all the executives, said he could not comment on Speer's filing because the government's source is confidential.
Attorneys for the convicted executives asked Marbley to compel the government to disclose its source, but Marbley denied the motion Monday.
An arrest warrant for a fifth National Century executive, 58-year-old Rebecca Parrett, remains outstanding. Police are searching for Parrett, the company's former treasurer and co-founder, after she failed to show up for an appointment with a court officer in Arizona where she was to await sentencing. Her whereabouts remain unknown.
A jury found the five executives guilty of running a multiyear fraud at National Century, which collapsed into bankruptcy six years ago, resulting in as much as $3 billion in investor funds going missing. They each face prison sentences of 20 to 55 years.
Marbley allowed the five executives to remain under house arrest until their sentencing on the condition they would be placed on electronic monitoring. Parrett never received a monitoring device.
Poulsen is scheduled to be tried on similar fraud charges this summer. He and a friend, Karl Demmler, were convicted March 26 on witness tampering charges stemming from claims they tried to bribe a key government witness scheduled to testify in Poulsen's trial. The two men are in custody awaiting sentencing.
hmm......Who else will flee ? The missing Executive that has yet to be tried?
National Century
Convicted executive says escape plot is lie
Monday, April 7, 2008 9:10 PM
By Jodi Andes
THE COLUMBUS DISPATCH
A former National Century Financial Enterprises executive, jailed after word of a plot to flee the country surfaced, continued his efforts to be released today.
Attorneys for Randolph H. Speer filed a motion today in federal court in Columbus saying a jailhouse informant lied and that there was no plan by National Century executives to meet in Aruba if convicted.
Five former executives of the defunct Dublin-based health-care financier were convicted on a variety of fraud counts in March.
The motion, filed by attorneys Fred Benton and James Ervin Jr. on behalf of Speer, says the government's allegations of a plot are baseless and asks that Speer and the other executives be freed pending sentencing.
“Mr. Speer vehemently and unequivocally denies knowledge or participation in any such plot,” Speer's attorneys wrote. “There is no credible evidence to support such a blatantly false allegation.”
Last week, federal Judge Algenon L. Marbley ordered that Speer, Donald H. Ayers, Roger S. Faulkenberry and James E. Dierker Jr. be placed behind bars instead of on house arrest.
A bond revocation hearing for the National Century executives is expected to be held April 16. Marbley made the order after Rebecca S. Parrett's disappearance in late March. Parrett was among the five convicted, and her whereabouts remain unknown. Then FBI agents learned from a confidential informant of a plan to escape to Aruba, information that reportedly came from Lance K. Poulsen, former National Century president who's awaiting trial.
Poulsen says he never made such a statement. Poulsen's assertion was made in a letter from his attorney that was attached to the motion.
Today's motion also says the government's informant is Robert Cihy, who is being held in the Ross County Jail on federal charges along with Poulsen.
Cihy was charged with robbing the Farmers Citizen Bank, 5858 N. High St., Worthington, where $1,577 was taken and a gun was shown. He also is a suspect in several other robberies, according to federal court records.
Cihy agreed to a plea bargain and is expected in court Wednesday.
Assistant U.S. Attorney Doug Squires has said the government does not comment about its confidential sources.
Marbley ruled today that the government will not have to disclose the identity of the source.
Convicted executive says escape plot is lie
Monday, April 7, 2008 9:10 PM
By Jodi Andes
THE COLUMBUS DISPATCH
A former National Century Financial Enterprises executive, jailed after word of a plot to flee the country surfaced, continued his efforts to be released today.
Attorneys for Randolph H. Speer filed a motion today in federal court in Columbus saying a jailhouse informant lied and that there was no plan by National Century executives to meet in Aruba if convicted.
Five former executives of the defunct Dublin-based health-care financier were convicted on a variety of fraud counts in March.
The motion, filed by attorneys Fred Benton and James Ervin Jr. on behalf of Speer, says the government's allegations of a plot are baseless and asks that Speer and the other executives be freed pending sentencing.
“Mr. Speer vehemently and unequivocally denies knowledge or participation in any such plot,” Speer's attorneys wrote. “There is no credible evidence to support such a blatantly false allegation.”
Last week, federal Judge Algenon L. Marbley ordered that Speer, Donald H. Ayers, Roger S. Faulkenberry and James E. Dierker Jr. be placed behind bars instead of on house arrest.
A bond revocation hearing for the National Century executives is expected to be held April 16. Marbley made the order after Rebecca S. Parrett's disappearance in late March. Parrett was among the five convicted, and her whereabouts remain unknown. Then FBI agents learned from a confidential informant of a plan to escape to Aruba, information that reportedly came from Lance K. Poulsen, former National Century president who's awaiting trial.
Poulsen says he never made such a statement. Poulsen's assertion was made in a letter from his attorney that was attached to the motion.
Today's motion also says the government's informant is Robert Cihy, who is being held in the Ross County Jail on federal charges along with Poulsen.
Cihy was charged with robbing the Farmers Citizen Bank, 5858 N. High St., Worthington, where $1,577 was taken and a gun was shown. He also is a suspect in several other robberies, according to federal court records.
Cihy agreed to a plea bargain and is expected in court Wednesday.
Assistant U.S. Attorney Doug Squires has said the government does not comment about its confidential sources.
Marbley ruled today that the government will not have to disclose the identity of the source.
Subprime FRAUD.....The tangled web ...TURNAROUND MANAGEMENT AMIDST CREDIT FACILITY
Oh this is so deep.......tooo deep for most AMERICANS to even comprehend!
But when this is finally unveiled, we will see what type of person this so called
turnaround manager is all about!
What a joke!
ITEM 5. OTHER EVENTS
On January 10, 2001, the Registrant issued a press release, a copy of which is filed as an exhibit to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press Release dated January 9 and issued January 10, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
West Coast Entertainment Corporation
EXHIBIT 99.1
West Coast Entertainment Corporation
9998 Global Road
Philadelphia, Pennsylvania 19115
Phone: (215) 856-2560
FOR IMMEDIATE RELEASE
WEST COAST ENTERTAINMENT CORPORATION APPOINTS
TURNAROUND MANAGEMENT AMIDST CREDIT FACILITY
DEFAULT, RECURRING LOSSES AND LIQUIDATION OF BUSINESS ASSETS
PHILADELPHIA, PA, January 9, 2001 -- West Coast Entertainment Corporation (OTCBB: WCEC), today announced that effective October 25, Gerard J. Leimkuhler became a director of the Company replacing the prior board members. Mr. Leimkuhler brings to the company broad experience in restructuring, divestitures and crisis management, having served as interim chief executive officer of Eagle Capital Corporation, a large mortgage lender in conventional and subprime markets, as Vice Chairman and Interim Chief Operating Officer of Medshares, Inc., and was Vice Chairman of Oxford First Corporation, a Philadelphia based real estate lender.
Also as of November 1, Messrs. Leimkuhler and Jacobs became officers of the Company. Mr. Leimkuhler is Co-Chief Executive Officer and President and Mr. Jacobs is Co-Chief Executive Officer, Secretary, and Treasurer.
The Company also noted that as disclosed in its Form 10-Q for the period ended May 7, 2000 (the "First Quarter 10-Q"), the Company has suffered recurring operating losses and has a working capital and stockholders deficit as of May 7, 2000. Those deficits have significantly increased since that time. The First Quarter 10-Q also stated that the Company was in default under its credit facility and that those factors raised substantial doubt as to the Company's ability to continue as a going concern. The report of the Company's independent auditors is so qualified.
The First Quarter 10-Q stated that on March 3, 2000, the Company entered into an agreement and plan of merger with Video City, Inc. ("Video City"). On August 24, 2000, Video City filed for protection from its creditors under the federal bankruptcy laws, as announced by the Company on August 25, 2000. The merger transaction has not been consummated, nor does the Company expect that it will be consummated.
The First Quarter 10-Q also reported that on January 12, 1999, the Company signed an amendment to its bank Agreement increasing the availability under its credit facility and providing certain credit enhancements. On October 22, 1999, the Company entered into the fourth amendment to its credit facility and on February 13, 2000, the Company signed a forbearance and fifth amendment to its credit facility whereby the bank group extended the effective maturity to August 31, 2000. There has been no further extension of the forbearance agreement since that time.
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On or about September 21, 2000, the Company notified the United States Securities and Exchange Commission ("SEC") of the anticipated late filing of the Company's quarterly report on Form 10-Q for the period ended August 6, 2000 (the "Second Quarter 10-Q"). Since the notification, the Company has not filed the Second Quarter 10-Q or any other periodic reports with the SEC. At the present, Management does not expect the Company to be in a position to recommence regular periodic reporting with the SEC and intends to investigate the de-registration of its common stock and suspension of any further periodic reporting obligations.
Since the time of filing of the First Quarter 10-Q, the Company has sold 47 stores in the following transactions:
On October 19, 2000, the Company and its affiliates King Video Enterprises, Inc. and Video King of Browne County, Inc. sold 23 retail video stores in New York and Pennsylvania trading as "Video King" and "West Coast Video" to Video King Group, LLC for $5,100,000.
On November 30, 2000, the Company and its affiliate West Coast Entertainment Corporation of Indiana, Inc. sold 14 retail video stores in Indiana and Kentucky trading as "West Coast Video" to UBT Management LLC for $825,000.
On December 7, 2000, WCEC and its affiliates Video Giant, Inc. sold 10 retail video stores in Arkansas, Louisiana, Oklahoma and Texas trading as "West Coast Video" and "Video Giant" to Kenneth Stone for $2,700,000.
As a result of these sales, the Company has realized proceeds of $8,625,000. These proceeds have been applied to reduce bank debt, pay the costs of the transactions and fund the Company's continued operations.
On January 8, 2000, the Company sold 7 operating retail video stores and the inventory of 2 closed stores to Donald Weiss for $875,000. These proceeds will be applied to reduce bank debt, pay the costs of the transaction and fund the Company's continued operations.
In addition, the Company has entered into an asset purchase agreement with Video One Liquidators Division ("VOL") pursuant to which VOL will purchase and liquidate the inventory of approximately 83 retail store locations. The Company expects to realize proceeds in the approximate amount of $2,490,000 as a result of its agreement with VOL which will be applied to reduce bank debt, pay the costs of the transaction and fund the Company's continued operations.
The Company continues to seek to sell additional stores. There can be no assurance that the Company will be successful in selling additional stores or that the proceeds received from these sales together with the proceeds from previous sales of stores will be sufficient to satisfy the Company's obligations. In the event that they are not sufficient, the Company may be forced to seek protection from its creditors under the federal bankruptcy laws.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, such as statements of the Company's plans, activities, expectations and intentions, that involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to:
the ability to consummate sales of stores and the terms of such sales; the demand for video tapes, both rental and sales, which may be affected by seasonal factors, weather, the level of home viewing; competition from other retailers; the Company's ability to remain in compliance
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with or obtain compliance waivers for its bank agreement; the Company's ability to realize adequate proceeds from the sale of stores; the availability of grounds for the de-registration of its common stock and the suspension of SEC periodic reporting obligations; whether the Company will be required to file for protection from its creditors under the federal bankruptcy laws; and other factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2000.
Contact:
Alan M. Jacobs
c/o AMJ Advisors LLC
999 Central Avenue
Suite 208
Woodmere, New York 11588
Telephone: (516) 295-0627
Facsimile: (212) 937-2300
But when this is finally unveiled, we will see what type of person this so called
turnaround manager is all about!
What a joke!
ITEM 5. OTHER EVENTS
On January 10, 2001, the Registrant issued a press release, a copy of which is filed as an exhibit to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press Release dated January 9 and issued January 10, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
West Coast Entertainment Corporation
EXHIBIT 99.1
West Coast Entertainment Corporation
9998 Global Road
Philadelphia, Pennsylvania 19115
Phone: (215) 856-2560
FOR IMMEDIATE RELEASE
WEST COAST ENTERTAINMENT CORPORATION APPOINTS
TURNAROUND MANAGEMENT AMIDST CREDIT FACILITY
DEFAULT, RECURRING LOSSES AND LIQUIDATION OF BUSINESS ASSETS
PHILADELPHIA, PA, January 9, 2001 -- West Coast Entertainment Corporation (OTCBB: WCEC), today announced that effective October 25, Gerard J. Leimkuhler became a director of the Company replacing the prior board members. Mr. Leimkuhler brings to the company broad experience in restructuring, divestitures and crisis management, having served as interim chief executive officer of Eagle Capital Corporation, a large mortgage lender in conventional and subprime markets, as Vice Chairman and Interim Chief Operating Officer of Medshares, Inc., and was Vice Chairman of Oxford First Corporation, a Philadelphia based real estate lender.
Also as of November 1, Messrs. Leimkuhler and Jacobs became officers of the Company. Mr. Leimkuhler is Co-Chief Executive Officer and President and Mr. Jacobs is Co-Chief Executive Officer, Secretary, and Treasurer.
The Company also noted that as disclosed in its Form 10-Q for the period ended May 7, 2000 (the "First Quarter 10-Q"), the Company has suffered recurring operating losses and has a working capital and stockholders deficit as of May 7, 2000. Those deficits have significantly increased since that time. The First Quarter 10-Q also stated that the Company was in default under its credit facility and that those factors raised substantial doubt as to the Company's ability to continue as a going concern. The report of the Company's independent auditors is so qualified.
The First Quarter 10-Q stated that on March 3, 2000, the Company entered into an agreement and plan of merger with Video City, Inc. ("Video City"). On August 24, 2000, Video City filed for protection from its creditors under the federal bankruptcy laws, as announced by the Company on August 25, 2000. The merger transaction has not been consummated, nor does the Company expect that it will be consummated.
The First Quarter 10-Q also reported that on January 12, 1999, the Company signed an amendment to its bank Agreement increasing the availability under its credit facility and providing certain credit enhancements. On October 22, 1999, the Company entered into the fourth amendment to its credit facility and on February 13, 2000, the Company signed a forbearance and fifth amendment to its credit facility whereby the bank group extended the effective maturity to August 31, 2000. There has been no further extension of the forbearance agreement since that time.
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On or about September 21, 2000, the Company notified the United States Securities and Exchange Commission ("SEC") of the anticipated late filing of the Company's quarterly report on Form 10-Q for the period ended August 6, 2000 (the "Second Quarter 10-Q"). Since the notification, the Company has not filed the Second Quarter 10-Q or any other periodic reports with the SEC. At the present, Management does not expect the Company to be in a position to recommence regular periodic reporting with the SEC and intends to investigate the de-registration of its common stock and suspension of any further periodic reporting obligations.
Since the time of filing of the First Quarter 10-Q, the Company has sold 47 stores in the following transactions:
On October 19, 2000, the Company and its affiliates King Video Enterprises, Inc. and Video King of Browne County, Inc. sold 23 retail video stores in New York and Pennsylvania trading as "Video King" and "West Coast Video" to Video King Group, LLC for $5,100,000.
On November 30, 2000, the Company and its affiliate West Coast Entertainment Corporation of Indiana, Inc. sold 14 retail video stores in Indiana and Kentucky trading as "West Coast Video" to UBT Management LLC for $825,000.
On December 7, 2000, WCEC and its affiliates Video Giant, Inc. sold 10 retail video stores in Arkansas, Louisiana, Oklahoma and Texas trading as "West Coast Video" and "Video Giant" to Kenneth Stone for $2,700,000.
As a result of these sales, the Company has realized proceeds of $8,625,000. These proceeds have been applied to reduce bank debt, pay the costs of the transactions and fund the Company's continued operations.
On January 8, 2000, the Company sold 7 operating retail video stores and the inventory of 2 closed stores to Donald Weiss for $875,000. These proceeds will be applied to reduce bank debt, pay the costs of the transaction and fund the Company's continued operations.
In addition, the Company has entered into an asset purchase agreement with Video One Liquidators Division ("VOL") pursuant to which VOL will purchase and liquidate the inventory of approximately 83 retail store locations. The Company expects to realize proceeds in the approximate amount of $2,490,000 as a result of its agreement with VOL which will be applied to reduce bank debt, pay the costs of the transaction and fund the Company's continued operations.
The Company continues to seek to sell additional stores. There can be no assurance that the Company will be successful in selling additional stores or that the proceeds received from these sales together with the proceeds from previous sales of stores will be sufficient to satisfy the Company's obligations. In the event that they are not sufficient, the Company may be forced to seek protection from its creditors under the federal bankruptcy laws.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, such as statements of the Company's plans, activities, expectations and intentions, that involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to:
the ability to consummate sales of stores and the terms of such sales; the demand for video tapes, both rental and sales, which may be affected by seasonal factors, weather, the level of home viewing; competition from other retailers; the Company's ability to remain in compliance
--------------------------------------------------------------------------------
with or obtain compliance waivers for its bank agreement; the Company's ability to realize adequate proceeds from the sale of stores; the availability of grounds for the de-registration of its common stock and the suspension of SEC periodic reporting obligations; whether the Company will be required to file for protection from its creditors under the federal bankruptcy laws; and other factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2000.
Contact:
Alan M. Jacobs
c/o AMJ Advisors LLC
999 Central Avenue
Suite 208
Woodmere, New York 11588
Telephone: (516) 295-0627
Facsimile: (212) 937-2300
Monday, April 7, 2008
Federal jury on Wednesday convicted ....
Federal Jury Convicts Nat'l Century Exec
By ANDREW WELSH-HUGGINS
Associated Press Writer
COLUMBUS, Ohio — A federal jury on Wednesday convicted the founder of a failed health care company of trying to bribe a witness in an upcoming $1.9 billion fraud trial.
The jury took one day to deliver its decision against Lance Poulsen, former chief executive officer of National Century Financial Enterprises, described as the nation's largest health care financing firm before its 2002 bankruptcy.
Poulsen was accused of offering a former company executive $500,000 to give misleading testimony during Poulsen's fraud trial scheduled for August.
The executive, Sherry Gibson, told jurors that Karl Demmler, a long time friend to her and Poulsen, told her that Poulsen "wanted to make me whole."
The jury also convicted Demmler, who prosecutors had accused of acting as an intermediary for Poulsen to contact Gibson.
Poulsen said Gibson misunderstood his attempts to help her. He said he was only trying to provide her with a new attorney because he believed she'd been wrongly convicted based on bad legal advice.
Gibson pleaded guilty in 2003 for her role in the National Century fraud case in exchange for cooperating with prosecutors.
The government said the defendants could each face 35 years in prison on all counts of the four-count indictment alleging conspiracy, two counts of witness tampering and obstruction of justice. In court, U.S. District Judge Algenon Marbley referred to as many as 55 years. Actual sentences are usually much lower than the maximum penalties.
Marbley ordered Demmler taken into custody, citing comments he'd made while under investigation that he wanted to kill and dismember a federal bankruptcy judge. Poulsen has been held in a jail in Chillicothe.
Prosecutors were satisfied with the verdict. "The jury indicated that witness tampering would not take place in this courtroom or any other," said federal prosecutor Douglas Squires. "The case was a matter of money for lies."
The verdict could play a role in Poulsen's August fraud trial.
"What we proved is that the witness tampering was related to that scheduled jury trial of Lance Poulsen, and that trial is pending," Squires said.
Poulsen looked down briefly as Marbley read the guilty verdicts, while Demmler stared straight ahead. Poulsen's lawyers said they were taken aback by the verdict and would consider an appeal.
"The evidence pretty strongly demonstrated that he tried to set the record straight and encouraged the witness to tell the truth," said attorney Peter Anderson.
The government wouldn't say whether it would consider a plea deal ahead of the August trial. Poulsen's attorney said that decision would be up to Poulsen.
"Mr. Poulsen has been adamant about his innocence with regard to the allegations in that matter, and will take all the appropriate measures to try to clear his name in that case," said attorney William Terpening.
On a phone call with Demmler recorded by the government, Poulsen said Gibson should explain that her previous statements to prosecutors were based on old facts.
Poulsen said 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," Poulsen said on the recording.
In other recordings, Demmler suggests to Poulsen that Gibson could "have amnesia."
Prosecutors portrayed Gibson as a repentant ex-felon who'd served her time after pleading guilty to corporate fraud.
"How can I make you understand that I just want this whole situation behind me so I can get on with my life," Gibson said in a Jan. 29 letter to Demmler quoted by prosecutors.
Poulsen wanted to pay Gibson for one reason, U.S. trial attorney Leo Wise told jurors: to help him win his fraud case.
Defense attorneys characterized Gibson as an angry woman with an ax to grind who turned on Demmler and Poulsen when they were just trying to help her.
They quoted a different part of the same letter in which Gibson suggests that figuring out a way to get back what she lost would be "something to check out."
Poulsen testified he never tried to influence Gibson. "I never asked Sherry to lie," he told jurors during testimony that stretched over several hours. "I never asked her to forget anything."
In his August trial, Poulsen faces multiple counts of wire and securities fraud and money laundering.
The government alleges Poulsen misled investors about unsecured loans his company was providing health care companies such as hospitals and nursing homes. Prosecutors accuse Poulsen and other former executives of the suburban Dublin-based company of moving money to cover up shortfalls and fabricating data. The company filed for bankruptcy following an FBI raid.
At least nine former National Century executives have been convicted of corporate fraud related to the case to date, including Gibson.
The witness tampering case began after Gibson invited Demmler to dinner at a Don Pablo's restaurant in Columbus June 19.
"Business first," Demmler said when they met that night, then proceeded to explain that Poulsen wanted to "make her whole" based on what she'd been through, prosecutors said.
Gibson testified she understood that to mean she was being offered a bribe to change her testimony. She informed the government, turned down their request to investigate the allegation, then changed her mind after Demmler contacted her about another meeting.
Poulsen said the phrase had a different meaning.
"I felt she had been shafted royally," Poulsen told jurors. "I wanted to make her whole."
___
March 26, 2008 - 5:53 p.m. CDT
Copyright 2008, The Associated Press. The information contained in the AP Online news report may not be published, broadcast or redistributed without the prior written authority of The Associated Press.
By ANDREW WELSH-HUGGINS
Associated Press Writer
COLUMBUS, Ohio — A federal jury on Wednesday convicted the founder of a failed health care company of trying to bribe a witness in an upcoming $1.9 billion fraud trial.
The jury took one day to deliver its decision against Lance Poulsen, former chief executive officer of National Century Financial Enterprises, described as the nation's largest health care financing firm before its 2002 bankruptcy.
Poulsen was accused of offering a former company executive $500,000 to give misleading testimony during Poulsen's fraud trial scheduled for August.
The executive, Sherry Gibson, told jurors that Karl Demmler, a long time friend to her and Poulsen, told her that Poulsen "wanted to make me whole."
The jury also convicted Demmler, who prosecutors had accused of acting as an intermediary for Poulsen to contact Gibson.
Poulsen said Gibson misunderstood his attempts to help her. He said he was only trying to provide her with a new attorney because he believed she'd been wrongly convicted based on bad legal advice.
Gibson pleaded guilty in 2003 for her role in the National Century fraud case in exchange for cooperating with prosecutors.
The government said the defendants could each face 35 years in prison on all counts of the four-count indictment alleging conspiracy, two counts of witness tampering and obstruction of justice. In court, U.S. District Judge Algenon Marbley referred to as many as 55 years. Actual sentences are usually much lower than the maximum penalties.
Marbley ordered Demmler taken into custody, citing comments he'd made while under investigation that he wanted to kill and dismember a federal bankruptcy judge. Poulsen has been held in a jail in Chillicothe.
Prosecutors were satisfied with the verdict. "The jury indicated that witness tampering would not take place in this courtroom or any other," said federal prosecutor Douglas Squires. "The case was a matter of money for lies."
The verdict could play a role in Poulsen's August fraud trial.
"What we proved is that the witness tampering was related to that scheduled jury trial of Lance Poulsen, and that trial is pending," Squires said.
Poulsen looked down briefly as Marbley read the guilty verdicts, while Demmler stared straight ahead. Poulsen's lawyers said they were taken aback by the verdict and would consider an appeal.
"The evidence pretty strongly demonstrated that he tried to set the record straight and encouraged the witness to tell the truth," said attorney Peter Anderson.
The government wouldn't say whether it would consider a plea deal ahead of the August trial. Poulsen's attorney said that decision would be up to Poulsen.
"Mr. Poulsen has been adamant about his innocence with regard to the allegations in that matter, and will take all the appropriate measures to try to clear his name in that case," said attorney William Terpening.
On a phone call with Demmler recorded by the government, Poulsen said Gibson should explain that her previous statements to prosecutors were based on old facts.
Poulsen said 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," Poulsen said on the recording.
In other recordings, Demmler suggests to Poulsen that Gibson could "have amnesia."
Prosecutors portrayed Gibson as a repentant ex-felon who'd served her time after pleading guilty to corporate fraud.
"How can I make you understand that I just want this whole situation behind me so I can get on with my life," Gibson said in a Jan. 29 letter to Demmler quoted by prosecutors.
Poulsen wanted to pay Gibson for one reason, U.S. trial attorney Leo Wise told jurors: to help him win his fraud case.
Defense attorneys characterized Gibson as an angry woman with an ax to grind who turned on Demmler and Poulsen when they were just trying to help her.
They quoted a different part of the same letter in which Gibson suggests that figuring out a way to get back what she lost would be "something to check out."
Poulsen testified he never tried to influence Gibson. "I never asked Sherry to lie," he told jurors during testimony that stretched over several hours. "I never asked her to forget anything."
In his August trial, Poulsen faces multiple counts of wire and securities fraud and money laundering.
The government alleges Poulsen misled investors about unsecured loans his company was providing health care companies such as hospitals and nursing homes. Prosecutors accuse Poulsen and other former executives of the suburban Dublin-based company of moving money to cover up shortfalls and fabricating data. The company filed for bankruptcy following an FBI raid.
At least nine former National Century executives have been convicted of corporate fraud related to the case to date, including Gibson.
The witness tampering case began after Gibson invited Demmler to dinner at a Don Pablo's restaurant in Columbus June 19.
"Business first," Demmler said when they met that night, then proceeded to explain that Poulsen wanted to "make her whole" based on what she'd been through, prosecutors said.
Gibson testified she understood that to mean she was being offered a bribe to change her testimony. She informed the government, turned down their request to investigate the allegation, then changed her mind after Demmler contacted her about another meeting.
Poulsen said the phrase had a different meaning.
"I felt she had been shafted royally," Poulsen told jurors. "I wanted to make her whole."
___
March 26, 2008 - 5:53 p.m. CDT
Copyright 2008, The Associated Press. The information contained in the AP Online news report may not be published, broadcast or redistributed without the prior written authority of The Associated Press.
Friday, April 4, 2008
JPMorgan Chase will pay about $2 million .....really??? Such a DEAL!
Chase's new tab: $2 million
National Century case settlement its 2nd
Saturday, March 29, 2008 3:14 AM
FROM STAFF REPORTS
JPMorgan Chase will pay about $2 million to settle a case involving its relationship with National Century Financial Enterprises, the Securities and Exchange Commission announced this week.
The SEC accused Bank One and JPMorgan Chase, which now owns Bank One, of "negligent conduct" involving improper transfers among the accounts of National Century subsidiaries for which they served as trustees.
National Century and those subsidiaries collapsed, causing investor losses that the SEC pegged in its statement at $3.6 billion.
The SEC said the banks, at the instruction of National Century, moved money around, making it appear on days when balances were reported that there was enough money in accounts to meet requirements.
The SEC said the transfers were "large, recurring and contrary to the requirements. … Bank One and JPMorgan Chase were negligent and should have known" that National Century was trying to hide shortfalls.
A JPMorgan Chase spokeswoman confirmed the settlement but declined to comment.
This is not the first time JPMorgan Chase has agreed to a multimillion-dollar settlement involving its work with National Century.
Two years ago, it reached a $425 million settlement with National Century creditors, Bloomberg News reported at the time.
National Century was a Dublin-based company that served as a financier for health-care providers. National Century agreed to buy the providers' uncollected debts owed by patients, or accounts receivable, and give the providers money to cover expenses.
To raise that money, National Century set up subsidiaries, or "programs" as the SEC called them in this week's settlement, and sold bonds to investors.
National Century went bankrupt in 2002.
Five former National Century executives were convicted this month of fraud and other charges related to their business dealings that led to the company's collapse. The five are expected to be sentenced this summer.
Four other executives have pleaded guilty.
The company's leader and co-founder, Lance K. Poulsen, and his friend Karl A. Demmler were found guilty this week in a witness-tampering case related to the National Century case.
The two were convicted of trying to sway the testimony of a former company executive who is expected to testify against Poulsen in his upcoming trial. He faces a variety of charges related to National Century's collapse in 2002.
National Century case settlement its 2nd
Saturday, March 29, 2008 3:14 AM
FROM STAFF REPORTS
JPMorgan Chase will pay about $2 million to settle a case involving its relationship with National Century Financial Enterprises, the Securities and Exchange Commission announced this week.
The SEC accused Bank One and JPMorgan Chase, which now owns Bank One, of "negligent conduct" involving improper transfers among the accounts of National Century subsidiaries for which they served as trustees.
National Century and those subsidiaries collapsed, causing investor losses that the SEC pegged in its statement at $3.6 billion.
The SEC said the banks, at the instruction of National Century, moved money around, making it appear on days when balances were reported that there was enough money in accounts to meet requirements.
The SEC said the transfers were "large, recurring and contrary to the requirements. … Bank One and JPMorgan Chase were negligent and should have known" that National Century was trying to hide shortfalls.
A JPMorgan Chase spokeswoman confirmed the settlement but declined to comment.
This is not the first time JPMorgan Chase has agreed to a multimillion-dollar settlement involving its work with National Century.
Two years ago, it reached a $425 million settlement with National Century creditors, Bloomberg News reported at the time.
National Century was a Dublin-based company that served as a financier for health-care providers. National Century agreed to buy the providers' uncollected debts owed by patients, or accounts receivable, and give the providers money to cover expenses.
To raise that money, National Century set up subsidiaries, or "programs" as the SEC called them in this week's settlement, and sold bonds to investors.
National Century went bankrupt in 2002.
Five former National Century executives were convicted this month of fraud and other charges related to their business dealings that led to the company's collapse. The five are expected to be sentenced this summer.
Four other executives have pleaded guilty.
The company's leader and co-founder, Lance K. Poulsen, and his friend Karl A. Demmler were found guilty this week in a witness-tampering case related to the National Century case.
The two were convicted of trying to sway the testimony of a former company executive who is expected to testify against Poulsen in his upcoming trial. He faces a variety of charges related to National Century's collapse in 2002.
Here we go again.....Taylor Pickett.....Pickett also said that Omega is part of Haven's debtor-in-possession financing,
Second Look: Omega Healthcare Investors
Omega Healthcare Says UBS Note on Haven's Bankruptcy Has 'Generated Some Confusion'
April 03, 2008: 02:19 PM EST
NEW YORK (Associated Press) - Omega Healthcare Investors Inc. said Thursday that a UBS Investment Research note on bankruptcy concerns at a key customer has "generated some confusion" and contains statements that were either inaccurate or taken out of context.
UBS analyst Omotayo Okusanya II said Wednesday that debtors-in-possession of Haven Eldercare _ whose facilities make up 9 percent of Omega's portfolio _ have "become more reluctant to fund Haven through its restructuring" and that Haven may not renew a master lease with Omega in June. Haven declared bankruptcy in November.
Okusanya also said in his note that Haven is proposing potential bidders for its properties start with an opening offer of $8 million to $15 million, below Omega's current $61.8 million mortgage on Haven properties.
Omega is a real estate investment trust that provides financing to the long-term care industry. It has two financial portfolios with Haven, which include eight facilities that it leases to Haven and seven Haven locations on which it hold mortgages. The two support each other and are cross-collateralized, Taylor Hickett, Omega's chief executive officer, said in a phone interview.
(P)Hickett said it is unclear how Haven could possibly separate the mortgages from the lease and then reject the lease.
"Although no one can predict whether Haven will ultimately assume or reject Omega's master lease, throughout these proceedings Haven has consistently indicated that the Omega master lease is a valuable asset to the estate that will be assumed as part of the sale process," he said in a release.
The $8 million to $15 million is for unsecured creditors and that amount will allow them to "recover 100 percent of their indebtedness," he said. In bankruptcy proceedings, secured debt is paid before unsecured debt.
Pickett also said that Omega is part of Haven's debtor-in-possession financing, and that he is "not aware of any instance where there has been any reluctance to fund in accordance with the terms and conditions of the loan."
Omega shares fell 21 cents to $16.51 in afternoon trading Thursday.
Omega Healthcare Says UBS Note on Haven's Bankruptcy Has 'Generated Some Confusion'
April 03, 2008: 02:19 PM EST
NEW YORK (Associated Press) - Omega Healthcare Investors Inc. said Thursday that a UBS Investment Research note on bankruptcy concerns at a key customer has "generated some confusion" and contains statements that were either inaccurate or taken out of context.
UBS analyst Omotayo Okusanya II said Wednesday that debtors-in-possession of Haven Eldercare _ whose facilities make up 9 percent of Omega's portfolio _ have "become more reluctant to fund Haven through its restructuring" and that Haven may not renew a master lease with Omega in June. Haven declared bankruptcy in November.
Okusanya also said in his note that Haven is proposing potential bidders for its properties start with an opening offer of $8 million to $15 million, below Omega's current $61.8 million mortgage on Haven properties.
Omega is a real estate investment trust that provides financing to the long-term care industry. It has two financial portfolios with Haven, which include eight facilities that it leases to Haven and seven Haven locations on which it hold mortgages. The two support each other and are cross-collateralized, Taylor Hickett, Omega's chief executive officer, said in a phone interview.
(P)Hickett said it is unclear how Haven could possibly separate the mortgages from the lease and then reject the lease.
"Although no one can predict whether Haven will ultimately assume or reject Omega's master lease, throughout these proceedings Haven has consistently indicated that the Omega master lease is a valuable asset to the estate that will be assumed as part of the sale process," he said in a release.
The $8 million to $15 million is for unsecured creditors and that amount will allow them to "recover 100 percent of their indebtedness," he said. In bankruptcy proceedings, secured debt is paid before unsecured debt.
Pickett also said that Omega is part of Haven's debtor-in-possession financing, and that he is "not aware of any instance where there has been any reluctance to fund in accordance with the terms and conditions of the loan."
Omega shares fell 21 cents to $16.51 in afternoon trading Thursday.
Rearrested executives deny plot to flee U.S....where is the missing executive from all of this?
Rearrested executives deny plot to flee U.S.
1 National Century leader goes AWOL; judge corrals rest
Thursday, April 3, 2008 3:25 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Update
Judge refuses to free defendants
If former executives of National Century Financial Enterprises were convicted, the plan was for them to flee to Aruba, a source told the FBI.Hearing that less than a week after one of the five recently convicted executives disappeared, U.S. District Judge Algenon L. Marbley ordered that the rest be arrested.
All five had been free since their March 13 convictions while they await sentencing in what prosecutors called the largest fraud case in U.S. history involving a privately held company.
Four executives were arrested at their homes yesterday morning: James E. Dierker Jr. in Powell; Roger S. Faulkenberry in Dublin; Donald H. Ayers in Florida; and Randolph H. Speer in Georgia, Deputy U.S. Marshal Brian Babtist said.
An arrest warrant was issued for Rebecca S. Parrett last week after she did not report to court near her home in Carefree, Ariz., prosecutors said.
Marbley had allowed Parrett and Ayers to remain free on house arrest; Dierker, Faulkenberry and Speer were free on less-restrictive personal-recognizance bonds and allowed to work.
On Tuesday, the FBI received information from a "confidential source" that the group had a previous plan to flee to the Caribbean island off the Venezuelan coast, Assistant U.S. Attorney Doug Squires said in a motion filed yesterday in federal court.
The defendants had to turn in their passports before the trial. But Parrett went so far as to "secure personal identity information of another person prior to the jury trial," the motion states.
The source is not named, but it is someone the FBI has found to be credible in the past, Squires wrote in asking that their bonds be revoked.
Defense attorneys were outraged at the allegation.
"This guy has done everything by the book," said Faulkenberry's attorney, Javier Armengau.
He said Faulkenberry calls his office every day and even checked with the court to make sure he could leave his house to drive his daughter to school.
James Ervin Jr., an attorney for Speer, said his client "vehemently maintains his innocence." Ervin said they were shocked by the allegations.
"I don't know anything about it. But I don't believe it," added Leonard Yelsky, attorney for Dierker, a vice president at Victoria's Secret.
The five executives were convicted on a combination of wire-fraud, securities-fraud, money-laundering and conspiracy charges connected to National Century's collapse.
The Dublin-based company provided funding for health-care providers after purchasing their accounts receivables. The company went bankrupt in November 2002, in large part because of unsecured loans it made to the health-care providers, prosecutors showed.
Investors in National Century lost more than $1.9 billion, more than 275 health-care providers filed for bankruptcy in its wake and about 350 local National Century employees lost their jobs.
jandes@dispatch.com
1 National Century leader goes AWOL; judge corrals rest
Thursday, April 3, 2008 3:25 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Update
Judge refuses to free defendants
If former executives of National Century Financial Enterprises were convicted, the plan was for them to flee to Aruba, a source told the FBI.Hearing that less than a week after one of the five recently convicted executives disappeared, U.S. District Judge Algenon L. Marbley ordered that the rest be arrested.
All five had been free since their March 13 convictions while they await sentencing in what prosecutors called the largest fraud case in U.S. history involving a privately held company.
Four executives were arrested at their homes yesterday morning: James E. Dierker Jr. in Powell; Roger S. Faulkenberry in Dublin; Donald H. Ayers in Florida; and Randolph H. Speer in Georgia, Deputy U.S. Marshal Brian Babtist said.
An arrest warrant was issued for Rebecca S. Parrett last week after she did not report to court near her home in Carefree, Ariz., prosecutors said.
Marbley had allowed Parrett and Ayers to remain free on house arrest; Dierker, Faulkenberry and Speer were free on less-restrictive personal-recognizance bonds and allowed to work.
On Tuesday, the FBI received information from a "confidential source" that the group had a previous plan to flee to the Caribbean island off the Venezuelan coast, Assistant U.S. Attorney Doug Squires said in a motion filed yesterday in federal court.
The defendants had to turn in their passports before the trial. But Parrett went so far as to "secure personal identity information of another person prior to the jury trial," the motion states.
The source is not named, but it is someone the FBI has found to be credible in the past, Squires wrote in asking that their bonds be revoked.
Defense attorneys were outraged at the allegation.
"This guy has done everything by the book," said Faulkenberry's attorney, Javier Armengau.
He said Faulkenberry calls his office every day and even checked with the court to make sure he could leave his house to drive his daughter to school.
James Ervin Jr., an attorney for Speer, said his client "vehemently maintains his innocence." Ervin said they were shocked by the allegations.
"I don't know anything about it. But I don't believe it," added Leonard Yelsky, attorney for Dierker, a vice president at Victoria's Secret.
The five executives were convicted on a combination of wire-fraud, securities-fraud, money-laundering and conspiracy charges connected to National Century's collapse.
The Dublin-based company provided funding for health-care providers after purchasing their accounts receivables. The company went bankrupt in November 2002, in large part because of unsecured loans it made to the health-care providers, prosecutors showed.
Investors in National Century lost more than $1.9 billion, more than 275 health-care providers filed for bankruptcy in its wake and about 350 local National Century employees lost their jobs.
jandes@dispatch.com
U.S. Marshals arrest Ayers, Dierker, Faulkenberry and Speer
Arrests in alleged escape plot latest twist in Ohio fraud case
By The Associated Press
Published on Thursday Apr 03, 2008
Some events in the history of the $1.9 billion fraud case against National Century Financial Enterprises, based in the Columbus suburb of Dublin:
1991: Businessman Lance Poulsen founds National Century, a health care financing company that provides financing to medical providers such as nursing homes and small hospitals by buying their short-term debt with money raised from investors.
1995-2002: According to federal prosecutors, the company provides unsecured loans to health care providers and misleads investors about the loans.
November 2002: The company declares bankruptcy after the FBI raids its offices as part of a government investigation.
August 2003: Sherry Gibson, a friend of Poulsen who rose through the company ranks from secretary to executive vice president of compliance, pleads guilty to conspiracy to commit wire and securities fraud.
July 2007: A federal grand jury indicts seven former executives of the company, including Poulsen, with multiple counts of conspiracy, wire and securities fraud and money laundering.
December 2007: A grand jury indicts Poulsen and acquaintance Karl Demmler on charges of trying to bribe Gibson to change her testimony at Poulsen's upcoming fraud trial.
January: U.S. District Court Judge Algenon Marbley grants Poulsen's request to have his own fraud trial in August.
February: Five remaining defendants go on trial before Marbley: Donald Ayers, James Dierker, Roger Faulkenberry, Rebecca Parrett and Randolph Speer.
Prosecutors allege the five engaged in a massive cover-up by lying to investors, fabricating data and loading false information onto a company computer system. Defendants said the government used incorrect definitions in looking at the company's books and took the company's activities out of context by showing jurors only a tiny slice of National Century's operations.
March 13: A jury finds all five defendants guilty. Marbley allows the five to remain free pending sentencing.
March 26: A jury convicts Poulsen and Demmler of conspiracy, witness tampering and obstruction of justice for trying to bribe Gibson.
March 27: Marbley issues an arrest warrant for Parrett after the government says she disappeared.
April 2: U.S. Marshals arrest Ayers, Dierker, Faulkenberry and Speer after the government says it uncovered a plot under which the four would flee to Aruba if convicted.
April 3: Marbley refuses to allow Dierker and Faulkenberry to go free pending a full hearing on the government's plot allegations.
Source: AP Research.
By The Associated Press
Published on Thursday Apr 03, 2008
Some events in the history of the $1.9 billion fraud case against National Century Financial Enterprises, based in the Columbus suburb of Dublin:
1991: Businessman Lance Poulsen founds National Century, a health care financing company that provides financing to medical providers such as nursing homes and small hospitals by buying their short-term debt with money raised from investors.
1995-2002: According to federal prosecutors, the company provides unsecured loans to health care providers and misleads investors about the loans.
November 2002: The company declares bankruptcy after the FBI raids its offices as part of a government investigation.
August 2003: Sherry Gibson, a friend of Poulsen who rose through the company ranks from secretary to executive vice president of compliance, pleads guilty to conspiracy to commit wire and securities fraud.
July 2007: A federal grand jury indicts seven former executives of the company, including Poulsen, with multiple counts of conspiracy, wire and securities fraud and money laundering.
December 2007: A grand jury indicts Poulsen and acquaintance Karl Demmler on charges of trying to bribe Gibson to change her testimony at Poulsen's upcoming fraud trial.
January: U.S. District Court Judge Algenon Marbley grants Poulsen's request to have his own fraud trial in August.
February: Five remaining defendants go on trial before Marbley: Donald Ayers, James Dierker, Roger Faulkenberry, Rebecca Parrett and Randolph Speer.
Prosecutors allege the five engaged in a massive cover-up by lying to investors, fabricating data and loading false information onto a company computer system. Defendants said the government used incorrect definitions in looking at the company's books and took the company's activities out of context by showing jurors only a tiny slice of National Century's operations.
March 13: A jury finds all five defendants guilty. Marbley allows the five to remain free pending sentencing.
March 26: A jury convicts Poulsen and Demmler of conspiracy, witness tampering and obstruction of justice for trying to bribe Gibson.
March 27: Marbley issues an arrest warrant for Parrett after the government says she disappeared.
April 2: U.S. Marshals arrest Ayers, Dierker, Faulkenberry and Speer after the government says it uncovered a plot under which the four would flee to Aruba if convicted.
April 3: Marbley refuses to allow Dierker and Faulkenberry to go free pending a full hearing on the government's plot allegations.
Source: AP Research.
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