Federal Judge Algenon L. Marbley, however, sentenced Poulsen, 65, to 10 years in a federal prison.....but what is next?

NATIONAL CENTURY CASE
Apologetic executive gets 10 years
Saturday, August 9, 2008 3:10 AM
By Jodi Andes

THE COLUMBUS DISPATCH

Poulsen


Demmler
Minutes before Lance K. Poulsen was sentenced for trying to bribe the star witness in the nation's largest private-fraud case, he apologized.

Yesterday, nearly all objections made by Poulsen's attorneys to keep their client from a long prison term were shot down by the judge in three hours of debate.

Poulsen was then given the option to speak before he was sentenced for witness tampering and obstruction of justice.

Shackled at the hands and feet, Poulsen offered the first apology for the 2002 demise of Dublin-based National Century Financial Enterprises, where 350 employees lost their jobs and investors lost more than $2 billion.

"I want to express my remorse. I have had many months of imprisonment to consider my conduct," Poulsen said. "But there is no question that NCFE's failure hurt many families.

"These were good people employed at NCFE and now have no future. There is no question that NCFE was my company. … I was ultimately responsible for my company's welfare and their welfare."

The statements followed a tearful plea from Poulsen's wife, Barbara, to the judge.

"He is sincere and unselfish in his motives. I truly believe he is a really good man," she said, crying. "I just ask for your leniency in the sentencing."

The most common sentence for such crimes is less than two years in prison, Poulsen's attorney Pete Anderson noted.

Federal Judge Algenon L. Marbley, however, sentenced Poulsen, 65, to 10 years in a federal prison.Authorities said that Poulsen, who was one of the founders of National Century, and his friend Karl A. Demmler tried to get Sherry Gibson, the government's star witness in National Century's fraud case, to fake amnesia. FBI agents tapped phone conversations and had Gibson wear a recording device.

The scheme showed that Poulsen was the puppeteer and Demmler his puppet, Marbley said. "This was an egregious offense that goes to the integrity of the judicial process," he said.

National Century collected accounts receivable for health-care providers for a fee. The company went bankrupt after offering hundreds of millions of dollars in unsecure loans to health-care providers.

Demmler, 57, was to be sentenced yesterday on the same charges. But his attorney was granted a continuance for a psychological report, saying Demmler is becoming mentally unstable. Demmler has told jail workers that he drinks his urine.

Poulsen was the fifth National Century employee to be sentenced this week. The other four and their prison terms: Donald H. Ayers, 72, 15 years; James E. Dierker Jr., 40, five years; Roger Faulkenberry, 47, 10 years; and Randolph H. Speer, 57, 12 years.


A sixth defendant, Rebecca S. Parrett, disappeared after she was convicted.

Poulsen also faces fraud charges and is scheduled for trial Oct. 1.

jandes@dispatch.com