Heatlh Care Fraud & Financial Institutes...THEY ARE CONNECTED!!!

Convicted “grandma-on-the-run” faces 75 years for $3 BILLION scam
May 29th, 2008 · 1 Comment
The Sonoran News called Becky Parrett’s Desert Mountain Art Gallery a touch of class to downtown Carefree, AZ. “People who love fine art will appreciate having pieces like this in a gallery,” said Parrett. ( Sonoran News, June 1, 2005)


Becky Parrett making headlines again, April, 2008.

Attorney Greg Peterson is concerned for the safety of his “missing” client, Rebecca “Becky” Parrett.

“My desire is to make sure that she’s safe,” Peterson said. He admits his client was “very disappointed” about her conviction for 9-counts of conspiracy, securities fraud, wire fraud and money laundering - which could send her to prison for 75 years - but said, “I believe that Becky understands her obligations to the court and she will fulfill those obligations.”

It doesn’t appear, though, that Becky is going to fulfill her obligations soon. She managed to pick up two months worth of prescription drugs before “disappearing“.

Becky’s son, Rob Parrett, says his mother told him she “wasn’t going to jail for something she didn’t do” and had said she would head for Costa Rica.

59 year-old Parrett is used to fame and recognition.

Named first on Franklin Heights High School’s list of distinguished alumni, Becky along with her ex-husband, Donald H. Ayers, co-founded the largest and fastest growing healthcare financial services organization in the country. National Century Financial Enterprises employed 300 and had more than $3 billion in assets National Century Financial Enterprises’ receivables-backed paper was rated AAA by Moody’s.

Born in West Virginia to parents who barely had a high school education, Parrett took a cushy executive lifestyle like a duck to water. She lived lavishly. Her 4,725-square-foot Arizona home with its five-car garage and indoor pool, features an exclusive art collection hanging over marbled floors. The main quarters, guest house and stable are a mix of the Southwest and expensive elegance.The $6 million valued estate which overlooks a mountain ridge, is appropriately named “Blaze of Glory Ranch”.

Parrett also owns an $89,000 home on the West Side of Columbus, where her mother lives. She owns a $700,000 Fountain Hills, Ariz., home that her only child, Rob Parrett, used for many years. She set up a trust fund in her son’s name to help him pay bills.

Parrett also helped the less fortunate. She ran a nonprofit agency called Be Our Best Inc. that caters to children and animals. She donated to the West Valley Children’s Crisis Center, in Glendale, Ariz., which cares for children in protective custody. She was on the advisory board of a new Scottsdale Health Care facility planned for North Scottsdale, and served on the board of the Foothills Community Foundation. From her spectacular Blaze of Glory Ranch Becky hosted upscale fundraisers for animal-rescue groups.

Since March, Parrett has become more famous that ever…on America’s Most Wanted.

Despite being found guilty for her participation in what federal prosecutors called ”the largest corporate fraud case involving a privately held company, ever”, an Ohio federal judge overrode prosecutorial protests and allowed the white-collar criminal to return home to settle her affairs pending sentencing. She was released on her own recognizance, but ordered to wear an electronic monitoring device.

Only, Rebecca Parrett didn’t show up for a scheduled appointment to be fitted with the ankle bracelet.

The last person known to have seen Parrett (on March 16) was her sixth husband Gary Green, who claims he was in a motorcycle accident that day and “can’t remember a thing”.

THE SCAM

By the end of 2001, National Century Financial Enterprises was desperately trying to get receivables to put on the books. Any receivables.

From the NCFE Website:
Other companies are afraid of 180 - day - old receivables.
We have a name for them -
(lightweights.)

“Other companies will not commit to buying your receivables.
We have a name for them-
(wishy-washy)

“Other companies give you an 85% advance rate on your receivables.
We have a name for them-
(stingy)

N.C.F.E. was the nation’s largest purchaser of hospital, physician and other health-care receivables. It served as a middleman between insurance companies and health-care providers around the country, including 60 hospitals, nursing homes and others.

To avoid waiting months to be paid, those health-care providers sold their receivables for 97 cents on the dollar to N.C.F.E. National Century Financial Enterprises then collected payment from the patients’ insurance carriers, Medicare or Medicaid.
To get cash to advance to health-care providers, National Century sold bonds to investors — including some big pension funds, which were among those hit hardest by National Century’s collapse.

The pension fund for New York City police, firefighters and other workers began investing in National Century in 2000. The company’s bonds were attractive because of their life span — usually three years — and high bond rating, said New York lawyer Steve Fineman.

Fitch Investor Services and Standard & Poor’s gave National Century the highest rating — AAA.

“It showed it was a conservative investment,” Fineman said.

Between May 1998 and May 2001, the company sold $4.4 billion worth of notes to investors, pledging to use the capital to buy accounts receivable from hospitals and other healthcare providers. Instead, authorities say N.C.F.E. executives advanced money to companies owned by the executives themselves — without requiring the accounts receivable as collateral. Which amounted to the company having millions in unsecured loans. In 2001 and 2002, National Century advanced $700 million in loans to companies without purchasing the accounts receivable.

The executives then lied to investors and rating agencies in order to cover up their actions.

As reserves weakened, investors and Securities Exchange Commission officials were given false financial reports that said National Century’s two subsidiaries, NPF VI and NPF XII, were healthy. But money was being shifted between the two to make it appear they had adequate money in reserve, the indictment says.

The company declared bankruptcy in 2002 and shut down shortly after.

Officials brought in to salvage the Dublin, Ohio, company said they found National Century Financial Enterprises only had collateral for about $900 million of $3 billion in outstanding bonds.

New details also are emerging about the lavish salaries and perks the National Century principals gave themselves, including frequent use of the company jet, consulting fees and retirement income. Over 2001 alone, Rebecca Parrett and partners Donald H. Ayers and Lance K. Poulsen received about $5.5 million in compensation. In addition, Ayers and Parrett, who retired in the middle of 2001, gave themselves $7.55 million in loans in August 2001, one official said, and they later arranged for the company to forgive repayment.

Assistant U.S. attorneys say that the company’s collapse resulted from criminal decisions, not a failed business plan.

“Few men have the virtue to withstand the highest bidder.” said George Washington, first president of the United States. Rebecca Parrett was no exception. Despite her opportunities, it was greed, no, actually greed gone wild that brought her down.

Anyone with any information about Rebecca Parrett, please call AMW’s confidential hotline: 1 - 800- CRIME - TV.