Prosecution rests....

Prosecution rests in National Century case
Thursday, October 23, 2008 9:42 PM
By Jodi Andes

THE COLUMBUS DISPATCH

Federal prosecutors rested their case today against National Century Chief Executive Lance K. Poulsen, accused of masterminding the country 's largest case of private fraud.

But before resting their case, prosecutors dismissed a money-laundering charge that was one of 13 counts Poulsen faced.

Poulsen is being tried in U.S. District Court in Columbus on fraud charges tied to the company's 2002 collapse. Private investors, including pension funds, lost billions, with $2billion yet to be recovered.

In the first 12 days of the trial, federal prosecutors called nine witnesses: four former National Century employees, an FBI agent, a CEO of an investment company, and two health-care officials, before concluding yesterday with a financial analyst.

Prosecutor Leo Wise said the money-laundering charge was dropped after a review of the case.

Initially, prosecutors had planned to prosecute Poulsen with other National Century executives. But with Poulsen being prosecuted alone, Wise said that particular money-laundering charge might be confusing for jurors.

Poulsen's attorneys didn't object.

"If they want to dismiss other counts, they can feel free to do so as well," defense attorney Peter Anderson said.

Poulsen, 65, still faces charges of conspiracy to defraud, wire fraud, money laundering conspiracy, three other counts of money laundering, and six counts of securities fraud.

The government's prosecution team is handled by local Assistant U.S. Attorney Doug Squires; FBI special agent Ingrid Schmidt, who is a lawyer; and two U.S. Department of Justice trial attorneys, Kathleen McGovern and Wise, who prosecuted employee fraud at Enron.

Amy Boothe, an analyst for Alliance Capital, was the prosecution's last witness today. She testified that she began purchasing National Century notes for investors in May 2000, after believing the company bought only highly secure accounts receivable from health-care providers.

Poulsen's defense attorneys are expected to begin presenting their case Monday, calling FBI Special Agent Matt Daly, who was the case's primary investigator.

It should take about three days to present the defense, Poulsen's attorneys told federal Judge Algenon L. Marbley.

jandes@dispatch.com