Letter to Wall Street Journal Reporters

Wonder if you can connect a pattern for Mr. Richard Rainwater?

Your article:

"Crescent, co-founded by Mr. Rainwater and John Goff and taken public in 1994, was one of the weakest performers in the real-estate-investment-trust sector when it announced in May 2007 that it was selling itself to Morgan Stanley.

The reason? Morgan bought Crescent before the credit crunch hit and commercial-real-estate values started to fall." (Really? In May of 2007, insiders did not know this crisis was coming? )

"…originally planned to put Crescent's office buildings, resorts, housing projects and other properties in one of the real-estate funds it manages for institutions and wealthy individuals. But the firm decided to keep what is now $4.6 billion of assets on its balance sheet instead, exposing Morgan Stanley to potential losses."


You failed to mention 'ex-partner' of G W Bush
"When Richard Rainwater, the renowned Texas investor, sold Crescent Real Estate Equities Co. to Morgan Stanley for $2.78 billion early last year, some Crescent shareholders complained the price was too low." (The operative word is 'some')



Seems to me that the one who is laughing loudest is Richard Rainwater.

Mr. Rainwater seems to follow a pattern of dumping. Maybe someday a good investigative reporter will report the true connection of this case even though the DOJ seems to write it as over. .



Not that too many reporters, including those at the WSJ have followed the National Century Financial Enterprise, Inc. (NCFE) fraud case in Dublin Ohio. This case was dubbed by the Department of Justice "Prosecutors have compared the Dublin-based company's collapse to Enron and Worldcom". Most of you seem to have a 'hands-off' approach to this case. Why?



Take a good look at the NCFE trial in Dublin, Ohio.

Prosecutors have compared the Dublin-based company's collapse to Enron and Worldcom

By WTVN Newsroom; Wednesday, August 6, 2008



Now mind you, the co-founder, Lance Poulsen has yet to go on trial along with the last indicted executive, James K Happ. James K Happ will follow the co-founder Poulsen. Why? Why did Judge Marbley on July11, 2008, agree to delay Poulsen's corporate fraud trial to Oct. 1. and Marbley also pushes back trial of former company executive James Happ to Dec. 1. James Happ goes last?

Once again, who is James K Happ?



Source: Med Diversified Inc. Annual Meeting Of Stockholders September 9, 2003





Prior to joining Med Diversified, James Happ served as executive vice president of National Century Financial Enterprises ("NCFE"), a health care financing company and the primary lender of Med Diversified.. Prior to joining NCFE, Happ was chief financial officer of Columbia/HCA's Homecare Group based in Dallas, Texas. Previously, he served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationally and more than $1 billion in revenue in 1997. In this role, he directed the company through the challenging reimbursement climate known as the interim payment system, and he participated in the divestiture of all of Columbia/HCA's home care operations.



Between May 1998 and May 2001, NCFE sold notes to investors with a combined value of $4.4 billion, which evidence showed were actually worth approximately six cents on the dollar at the time of NCFE's bankruptcy in November 2002.



Between 1998 & 1999, guess who purchased most of the losing assets of Columbia Homecare Group, Inc? NCFE. Richard Rainwater owned, then 'dumped' the HomeHealth care companies that were divested by James K Happ.

NCFE. Rainwater owned then 'dumped' the HomeHealth care companies that were divested by James K Happ.



The Department of Justice has issued their statement :

FOR IMMEDIATE RELEASE
Thursday, August 7, 2008
WWW.USDOJ.GOVCRM
(202) 514-2007
TDD (202) 514-1888




"These sentences mark the end of a nearly six-year march to justice for the architects of the financial house of cards known as National Century," said Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio."

"Mark the end" ? Is this case over? What about the trial for the founder, Lance Poulsen and James K Happ, Richard Rainwater's ex-employee?


And Morgan Stanley, well where do they fit?

The following is an excerpt from a 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006.
Enron litigation. JPMorgan Chase and certain of its officers and directors are
involved in a number of lawsuits arising out of its banking relationships with
Enron Corp.

The three current or former Firm employees are sued in their roles as former members of NCFE's board of directors (the "Defendant Employees"). JPMorgan
Chase, JPMorgan Partners and Beacon Group, LLC, are claimed to be vicariously liable for the alleged actions of the Defendant Employees. Banc One Capital
Markets, Inc. is sued in its role as co-manager for three note offerings made by NPF XII. Other defendants include the founders and key executives of NCFE, its
auditors and outside counsel, and rating agencies and placement agents that were involved with the issuance of the Notes. Plaintiffs in these actions include
institutional investors who purchased more than $2.7 billion in original face amount of asset-backed securities issued by NCFE

National Century Financial Enterprises litigation. JPMorgan Chase, JPMorgan Chase Bank, JPMorgan Partners, Beacon Group, LLC and three current or former
Firm employees have been named as defendants in more than a dozen actions filed in or transferred to the United States District Court for the Southern District
of Ohio (the "MDL Litigation"). In the majority of these actions, Bank One, Bank One, N.A., and Banc One Capital Markets, Inc. are also named as defendants.
JPMorgan Chase Bank and Bank One, N.A. are also defendants in an action brought by The Unencumbered Assets Trust ("UAT"), a trust created for the benefit of the
creditors of National Century Financial Enterprises, Inc. ("NCFE") as a result of NCFE's Plan of Liquidation in bankruptcy. These actions arose out of the
November 2002 bankruptcy of NCFE. Prior to bankruptcy, NCFE provided financing to various healthcare providers through wholly-owned special-purpose vehicles,
including NPF VI and NPF XII, which purchased discounted accounts receivable to be paid under third-party insurance programs. NPF VI and NPF XII financed thepurchases of such receivables, primarily through private placements of notes ("Notes") to institutional investors and pledged the receivables for, among other things, the repayment of the Notes. In the MDL Litigation, JPMorgan Chase Bank is sued in its role as indenture trustee for NPF VI, which issued approximately $1 billion in Notes. Bank One, N.A. is sued in its role as indenture trustee for NPF XII, which issued approximately $2 billion in Notes.
The three current or former Firm employees are sued in their roles as former members of NCFE's board of directors (the "Defendant Employees"). JPMorgan
Chase, JPMorgan Partners and Beacon Group, LLC, are claimed to be vicariously liable for the alleged actions of the Defendant Employees. Banc One Capital
Markets, Inc. is sued in its role as co-manager for three note offerings made by. Other defendants include the founders and key executives of NCFE, its
auditors and outside counsel, and rating agencies and placement agents that were involved with the issuance of the Notes. Plaintiffs in these actions include
institutional investors who purchased more than $2.7 billion in original face amount of asset-backed securities issued by NCFE