"...nation's largest private fraud case ..."

"...chief executive's criminal culpability in the nation's largest private fraud case depended..."

Maybe a look into the 'private' fraudulent financing company will reveal all the PUBLICLY TRADED companies 'DUMPING' their losing entities into NCFE!
Hint: James K Happ

Attorneys battle it out over Poulsen tapes
Alleged bribery of National Century exec at issue
Thursday, October 23, 2008 3:17 AM
By Jodi Andes


THE COLUMBUS DISPATCH
Lance K. Poulsen's recorded conversations were offered as evidence yesterday in his trial in connection with the collapse of his company, National Century Financial Enterprises.

But whether they proved the former chief executive's criminal culpability in the nation's largest private fraud case depended on who was asking the questions.

Peter Anderson, one of Poulsen's defense attorneys, said that the tapes showed Poulsen wasn't trying to bribe Sherry Gibson, a former vice president of the health-care lender, to forget certain facts when testifying against Poulsen.

She's the government's key witness in the fraud case.

Prosecutor Leo Wise used his questioning of FBI Special Agent Jeff Williams to try to show otherwise.

Wise said Poulsen's use of coded language, evident on tapes made by the FBI, along with the use of a middle man in conversations with Gibson and attempts to use phone lines thought to be secure show that Poulsen was trying to conceal the bribe.

Poulsen is being tried in U.S. District Court in Columbus on fraud charges tied to the company's implosion. When Dublin-based National Century filed for bankruptcy in November 2002, investors lost nearly $2 billion.

Poulsen's taped conversations with his friend Karl A. Demmler show that Poulsen believed Gibson got bad advice from her attorney when he advised her to plead guilty in connection with her role in the company's collapse, Anderson said.

In addition, Poulsen never met with Gibson or gave her any money, Anderson noted. Poulsen could be heard on the tape telling Demmler that he didn't want Gibson to lie, the defense attorney pointed out.

Poulsen's own taped statements show he did want Gibson to forget how she plugged investor reports with false numbers, the FBI agent testified.

In return, the National Century founder said he would also loan her money, "but of course that loan never needs to be repaid," Williams said, quoting Poulsen.

Furthermore, Poulsen did tell his attorney that he wanted to help Gibson find a new lawyer, but it's clear Poulsen didn't tell his own attorney everything he was offering to do for Gibson, Williams said.

"Only the three amigos know about the three amigos," Poulsen said on the tapes referring to himself, Demmler and Gibson.

Both Poulsen and Demmler were convicted in March of witness tampering and obstruction of justice in connection with their contacts with Gibson. Poulsen was sentenced to 10 years in prison; Demmler has yet to be sentenced.

The federal prosecution team of Wise, Doug Squires and Kathleen McGovern are expected to rest their case today after presenting one more witness.

jandes@dispatch.com