"It is one of the largest frauds the FBI has ever investigated in the history of the U.S.," Williams said.

"...one case, the money paid the legal settlement that National Century owed to companies that National Century executives wholly owned..."
One case? How did they own these companies? Company Stock Issued? Who operated these companies? Where were these companies?
So many questions...so few answers.

And this case goes well beyond 2.9 BILLION in fraud? Well beyond!!
ONE MILLION Transfers?

FBI agent: National Century faked receivables
Wednesday, October 8, 2008 10:15 PM
By Jodi Andes

THE COLUMBUS DISPATCH
By Jodi Andes

THE COLUMBUS DISPATCH

Funds invested with National Century Financial Enterprises were supposed to go toward buying the debts owed to health-care companies.

But in at least one case, the money paid the legal settlement that National Century owed to companies that National Century executives wholly owned, an FBI witness testified today during the fraud trial of Lance K. Poulsen, former National Century chief executive.

Special Agent Jeffrey Williams said a court had ordered National Century in 2001 to pay $7.75 million to three companies: Chartwell, Lifecare and Home Medical of America.

The suit was not detailed in court today, but Williams said National Century executives Poulsen, Donald H. Ayers and Rebecca S. Parrett owned "100 percent" of the three companies and their entities.

National Century executives used investor funds that had been guaranteed for the purchase of accounts receivables. Fake accounts receivable then were added to National Century's computer records, Williams said.

Williams said he analyzed company paper records from before the company filed for bankruptcy in 2002. The failure cost investors $1.9 billion.

The records also showed that Poulsen earned about $12 million during the company's last five years of business.

"It is one of the largest frauds the FBI has ever investigated in the history of the U.S.," Williams said.

John E. Haller, Poulsen's defense attorney, questioned the amount of paperwork and whether Williams put enough time into his analysis.

"Your goal was to make Mr. Poulsen look as bad as possible, wasn't it?" he asked Williams.

"No," the agent replied.

Haller noted that National Century's earnings analysis did not include personal money that Poulsen, and his wife, Barbara, put into the company. The couple paid in $5 million to National Century in 2002, he said.

jandes@dispatch.com