Where is the ex-CFO of Columbia Homecare Group? James K Happ?

Guilty on all 12 counts
Former chief executive could get life in prison for defrauding investors
Saturday, November 1, 2008 3:25 AM
By Jodi Andes

THE COLUMBUS DISPATCH
Lance K. Poulsen stood motionless to hear the verdict -- guilty on all 12 counts in a fraud that cost investors more than $2 billion and could cost Poulsen the rest of his life in prison.

When U.S. District Judge Algenon L. Marbley allowed him to be seated, the 65-year-old Poulsen paused, then grabbed both sides of his chair as if to steady himself.

Minutes later, he turned to his wife, Barbara, seated in the courtroom gallery, and mouthed the words, "I am so sorry."

Lance Poulsen was one of the founders and the chief executive officer of National Century Financial Enterprises, which began in 1991 to offer financing to small hospitals, clinics, nursing homes and other health-care providers. Using investors' funds, the Dublin company bought the providers' debt and gave them cash to cover expenses. It kept a fee or percentage of what was collected.

Prosecutors said National Century officials misused investors' money, often to enrich themselves, and made unsecured loans to providers, in some cases companies that the officials owned or had an interest in. Prosecutors referred to photographs of Poulsen on his 60-foot yacht.

When National Century went under in November 2002, at least 275 health-care companies collapsed in its wake.

Defense attorneys had argued that National Century had used acceptable business practices in its dealings with companies and investors. Some even invested millions of their own money in the company.

But even a consultant who said the company's business dealings were sound in August 2002 wrote Poulsen a few months later that the practices prompted "pause and concern," prosecutors countered.

Five former National Century executives were convicted on fraud charges in March. Four pleaded guilty. Authorities were still seeking the fifth, Rebecca S. Parrett, who failed to show for a court date in Arizona.

During their four hours of deliberations yesterday, jurors went through the counts one by one, reviewing evidence. They were surprised when they realized they had convicted Poulsen of all the charges, the jury foreman, who wanted to be identified only as Bill, said after the session in the federal courthouse in Columbus.

Defense attorneys William Terpening and Peter Anderson said they would appeal the verdict.

They had objected during the trial to jurors hearing details about the witness-tampering and obstruction-of-justice charges on which Poulsen was convicted earlier this year. Prosecutors said he had tried to get a government witness to fake amnesia; he was sentenced to 10 years in prison in August.

Terpening also said the defense was concerned about the complexity and volume of materials jurors were asked to digest. However, the foreman said prosecutors had broken down the evidence so it was concise and understandable, and had presented only nine witnesses.

A pre-sentence investigation must be conducted on Poulsen before he is sentenced.

Also, prosecutors said that a 13th count, in which they will try to recoup some of the losses from Poulsen, will be argued later. jandes@dispatch.com