Missing Executive not on TRIAL...WHY??

WHERE IS JAMES K HAPP?
The ex-Executive of Richard Rainwater's Columbia Homecare Group, NCFE and Med Diversifired! Why does he go last? Who does he know?




National Century's bad loans total $1,297,721,675
Wednesday, October 8, 2008 3:04 AM
By Jodi Andes

THE COLUMBUS DISPATCH
Federal authorities have long asserted that National Century Financial Enterprises' $1.9 billion in losses could largely be blamed on unsecured loans being doled out, one after another.

Yesterday, prosecutors quantified for jurors just what those loans totaled in the last four years of the company's operation -- down to the penny.

National Century executives gave $1,297,721,675.28 in unsecured loans to six companies they either owned or had a significant financial stake in, FBI Special Agent Jeffrey Williams testified yesterday at former Chief Executive Lance K. Poulsen's fraud trial.

There was no collateral to secure the loans, hence, no likelihood that they would be repaid, Williams said.

Poulsen, 65, one of three founders of National Century, is being tried in U.S. District Court in Columbus on fraud charges stemming from the company's November 2002 collapse.

The company's two other founders, Rebecca S. Parrett and Donald H. Ayers, were convicted of fraud in March. Ayers, 72, is serving a 15-year sentence. Parrett disappeared while free on bond and remains at large.

The FBI agent's testimony yesterday came after Judge Algenon L. Marbley suggested that one of Poulsen's defense attorneys, John E. Haller, recuse himself from questioning a witness.

Haller was an attorney for Purcell & Scott, a law firm that represented National Century until the company filed for bankruptcy. He also helped represent Home Healthcare of America, a client of National Century's, when a medical supplier sued Home Health and National Century in 1999.

When Assistant U.S. Attorney Doug Squires announced that he would call Home Healthcare's former Chief Executive Craig Porter as a witness, Marbley said Haller could not cross-examine him because that would be a conflict of interest.

He gave Poulsen's two other defense attorneys two hours to prepare, a time window that did not please Poulsen.

"This is a matter critical to my defense," Poulsen said. "I see how this protects Mr. Porter's rights. But I don't see how this protects my rights, and I'm on trial here."

Marbley ended the discussion, saying, "One of the things the court advised you at the outset was the conflict of Mr. Haller, but you waived that. Now this is a consequence of your waiver."

Porter testified that his company acquired home health-care companies and was owned by a company whose principal shareholders were Poulsen, Ayers and Parrett.

Despite National Century's loans, Home Healthcare still struggled, Porter testified.

"The company was really hemorrhaging cash and struggling as a company. It had a hard time paying its bills," Porter said.

jandes@dispatch.com