"...attorney’s conflict of interest. Haller was forced to recuse himself from the cross-examination of Porter because ....

"...attorney’s conflict of interest. Haller was forced to recuse himself from the cross-examination of Porter because he once represented Home Care Concepts."
Makes you wonder if there are tooooo many conflicts of interest!!

Will we ever see 'ALL' of the "...1 million electronic transactions ..."


Tuesday, October 7, 2008 - 6:20 PM EDT
Witnesses detail overfunding from National Century
Business First of Columbus - by Kevin Kemper

Over four years, National Century Financial Enterprises Inc. made illegal advances of more than $2 billion to six companies partially owned by Lance Poulsen, jurors in the former CEO’s fraud trial heard Tuesday.

Jeffrey Williams, an FBI agent who investigates white-collar crimes, told jurors an analysis of more than 1 million electronic transactions found Dublin-based National Century advanced $2.19 billion to the companies from 1999 and 2002. All six of the companies were partially owned by Poulsen, National Century’s founder and co-owner.

Poulsen was indicted on charges he ran a nearly decade-long fraud at National Century that resulted in $2.84 billion in investor funds going missing after the financing company collapsed into bankruptcy in 2002. He is standing trial in U.S. District Court in Columbus on charges of wire fraud, securities fraud and conspiracy among others.

Poulsen has pleaded not guilty to the charges.

Williams’ testimony was the capper to testimony from executives whose companies allegedly received the illegal advances.

Bryan Weiss, former CFO of Los Angeles-based MediManagement, testified Tuesday that his company depended on consistent overfunding from National Century to stay in business. Over the years National Century overfunded MediManagement, a hospital management business it owned, to tune of more than $100 million, Weiss said.

When National Century went bankrupt, MediManagement had to divert about $100,000 owed to National Century and its investors into MediManagement accounts to stay in business.

National Century was a financier of last resort for medical companies such as MediManagement, purchasing accounts receivable in exchange for quick cash that a health-care provider could use to pay its bills. National Century would then package the receivables into bonds and sell them to investors.

In the case of MediManagement, however, National Century also gave the company money to maintain operations, even though Weiss said MediManagement didn’t have sufficient receivables to meet its operating needs. But when National Century funded MediManagement beyond the value of its receivables, it violated securities laws because it broke promises to investors to only purchase accounts receivable, the government has alleged.

Defense lawyer John Haller attempted to show the jury that Weiss and MediManagement were at fault, not Poulsen.

“You took money that didn’t belong to you?” Haller asked.

“Yes,” Weiss answered.

“You stole, didn’t you Mr. Weiss?” Haller asked again.

Weiss said diverting the funds was the decision of MediManagement’s CEO.

Haller also asked Weiss if MediManagement was charged by the government with diverting money. Weiss answered that it wasn’t and that investigators never asked about diversions in interviews they conducted with him.

Craig Porter also testified Tuesday that his company was overfunded by National Century. Porter told jurors he was once CEO of Home Care Concepts of America Inc., which like MediManagement was owned in part by Poulsen and convicted accomplices Donald Ayers and Rebecca Parrett, also co-owners of National Century.

By the time Home Care Concepts went out of business in 2000, Porter testified, National Century had sent more than $300 million in overfunding to the company. Porter said he wasn’t aware of money diverted from Home Care Concepts to Poulsen.

Porter almost didn’t testify due to an attorney’s conflict of interest. Haller was forced to recuse himself from the cross-examination of Porter because he once represented Home Care Concepts. U.S. District Judge Algenon Marbley ruled Haller couldn’t use information gained during his representation of Home Care Concepts against Porter in his questioning and then directed Peter Anderson, another of Poulsen’s attorneys, to fill in for Haller.

Poulsen said he felt his rights weren’t being protected.

“I’m sure as heck not going to stand here and have my defense litigated away,” he told Marbley.

Marbley responded that because Poulsen has employed three lawyers, his rights were protected.