Final National Century exec .......FINAL? Are you kidding me?

How is this the FINAL EXEC?

Final National Century exec gets 5 years; colleague got 10Business First of Columbus - by Kevin Kemper
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En masse, they came to show their support.

Nearly half an hour before marketing executive James Dierker would learn his punishment for involvement in one of the largest frauds at a private company, the courtroom gallery where he would be sentenced was already pulsing Thursday afternoon.

By the time proceedings began, the gallery was nearly bursting with Dierker’s family, friends and coworkers.

Then U.S. District Judge Algenon Marbley emerged and sentenced the 40-year-old Dierker to spend the next five years in prison. Dierker’s sentence was the fourth – and lightest – handed down this week involving convicted former executives of National Century Financial Enterprises Inc.

“There is no doubt in the court’s mind that Mr. Dierker is the least culpable,” Marbley said. “Though Mr. Dierker may not have known the outer limits of the fraud that was perpetrated, he knew of the fraud.”

A jury convicted Dierker in March of one count of conspiracy to commit securities/wire fraud and three counts of money laundering. He was one of four other former executives at what was once the nation’s largest health-care financing company to be found guilty.

In a tearful statement, Dierker spoke of trying to teach his young sons to do right and think of others, and asked Marbley to consider the letters sent by his friends and family.

“My prayer today is that the court will consider the life that I’ve lived,” he said. “Quite simply, the life that defines me as a human being.”

Marbley noted the court had received more than 100 letters asking for leniency, and he paid particular attention to those letters from Dierker’s supervisors from Victoria’s Secret Direct who recounted the promotion of Dierker to vice president of marketing, even after he was indicted.

Still, Marbley noted he wanted to send a message to other executives who may know of fraud but keep quiet.

National Century specialized in buying receivables from health-care providers at a discount for quick cash. It packaged the receivables as asset-backed bonds and sold them to investors. The company fell into bankruptcy in 2002, taking down other companies with it. The government argued the former executives essentially ran a Ponzi scheme.

THIS IS DEBATABLE? Weren;t these companies already in TROUBLE! Remember, HEALTH CARE REFORM 1997? (Late 1997)

The government has alleged that as much as $2.89 billion of investor cash was lost between 1991 when National Century was founded and 2002 when it collapsed.

Unlike the other three executives, Marbley did not hold Dierker equally responsible for the more than $2.3 billion in losses the government contends is outstanding. He pegged Dierker’s responsibility at $7.89 million. He granted the government an order requiring Dierker to forfeit and liquidate personal assets to pay back the $1.77 billion the government proved at trial that had gone missing from National Century between May 1998 and May 2002.

$7.89million but pay back the $1.77 BILLION GONE MISSING!!

Three of Dierker’s convicted coworkers, Donald Ayers, Randolph Speer and Roger Faulkenberry, were sentenced on Wednesday and Thursday morning, and Marbley gave Dierker the lightest of the four sentences.

Ayers, 72, the company’s former chief operating officer and co-founder, will spend 15 years in prison. Speer, 57, was National Century’s one-time chief financial officer and will serve 12 years, while the 47-year-old Faulkenbery, the company’s former executive vice president of securitizations, will spend 10 years in jail.

‘Credibility issues’
Unlike his previously sentenced coworkers who entered the courtroom in shackles and prison jumpsuits, Dierker wore a suit and tie. He has been under house arrest since the conviction, while Ayers, Speer and Faulkenberry were put in the Pickaway County jail after government officials became convinced they planned to flee the country.

The alleged escape plan came to light after Rebecca Parrett, a National Century co-founder and Ayers’ ex-wife, disappeared from her Arizona home following the trial. She remains at large.

The government accused Dierker of trying to escape as well, but thanks in large part to letters sent to Marbley by many of those assembled in the courtroom on Thursday, Dierker remained under house arrest. Following his sentencing, Marbley gave Dierker 30 days to report to prison.

Before Marbley handed down his sentence, attorneys for Dierker and the government sparred over the presentence investigation report, a recommendation compiled by Dierker’s probation officer to aid the court in sentencing.

Angelo Lonardo, attorney for Dierker, objected to a portion of the report that suggested Dierker should receive more time in prison for perjuring himself during his testimony at the criminal trial. The government and presentence investigation report alleged Dierker lied when he said he didn’t fully understand the operations of National Century.

Dierker tried to evade questions from prosecutors, said Wes Porter, attorney for the government.

Marbley agreed with Lonardo that Dierker did not perjure himself.

“I think these are credibility issues,” Marbley said.