James K. Happ, 48, formerly a vice president of Dublin-based National Century Financial Enterprises, faces charges of conspiracy, money-laundering con

Happ was in charge of overseeing which accounts receivables were bought by National Century in its final years of business...

Ten executives of the defunct health-care lender have been convicted...


"...federal prosecutors showed that the company advanced billions to health-care companies between 1995 and 2002"

One should ask : "Just prior to arriving at NCFE, where did James K Happ come from?" CFO at (HCA's) Columbia Homecare Group, Inc. (SEC Source) His difficult taks was the 'divestiture' of losing assets. Well , guess where he dumped these?

Go to the 1999 Bankruptcy Case of Medshares, Inc. in Memphis, Tennessee. (On the other side of Nashville--you know where HCA is.)

In 1999, this case was the largest bankruptcy case in the Western District in Tennessee Federal Bankruptcy Court. Low and behold, 2000 the FBI RAIDED NCFE's office in Dublin, Ohio. 2002 company filed bankruptcy.

Some of the largest unsecured loans were given to companies owned wholly or partly by National Century executives.

Happ was "one of the top advancers at NCFE," who approved unsecured loans worth more than $100 million, Assistant U.S. Attorney Doug Squires told jurors yesterday in opening statements.

The advances were no secret, defense attorney Craig A. Gillen countered. They were a common practice known to auditors and rating agencies before Happ started with the company in February 2000 and after he left in the spring of 2002.


His task was to divest the losing Oh and guess what...THE BILLIONAIRE Richard Rainwater is located at the same address as Columbia Homecare Group, Inc.
??? Well, you need to go to another state...TENNESSEE. The largest Bankruptcy case in the hiostory of the . The Medshares ponsi scheme that was ignored.




Fraud trial begins for final company leader
Former vice president accused of approving unsecured loans
Wednesday, December 3, 2008 3:17 AM
By Jodi Andes

THE COLUMBUS DISPATCH
The 11th -- and last -- executive charged in what was dubbed the nation's largest fraud involving a private company went on trial in federal court in Columbus yesterday.

James K. Happ, 48, formerly a vice president of Dublin-based National Century Financial Enterprises, faces charges of conspiracy, money-laundering conspiracy and three counts of wire fraud. He has pleaded not guilty.

The company bought accounts receivables from health-care providers and collected the bills for a fee. Bonds were sold to investors.

Happ was in charge of overseeing which accounts receivables were bought by National Century in its final years of business, which ended with its bankruptcy in 2002. Investors lost more than $2 billion.

Ten executives of the defunct health-care lender have been convicted for their roles in a multibillion-dollar fraud that resulted in the bankruptcies of numerous health-care companies and hurt investors, among them pension funds across the country.

In two previous trials of executives this year, federal prosecutors showed that the company advanced billions to health-care companies between 1995 and 2002 in loans that had no accounts receivable as collateral. The practice was unknown to investors, who were told the bonds were secure.

Some of the largest unsecured loans were given to companies owned wholly or partly by National Century executives.

Happ was "one of the top advancers at NCFE," who approved unsecured loans worth more than $100 million, Assistant U.S. Attorney Doug Squires told jurors yesterday in opening statements.
It was a "staggering misuse of investor money," Squires said.

The advances were no secret, defense attorney Craig A. Gillen countered. They were a common practice known to auditors and rating agencies before Happ started with the company in February 2000 and after he left in the spring of 2002.

Happ then went to work for Tender Loving Care, one of the lender's clients. At that time, National Century's overpaid advances to that company alone totaled about $99 million. After Happ became chief executive of Tender Loving Care, he saw that all the advances from National Century were repaid, Gillen said.

Happ's case is being tried before U.S. District Judge Algenon L. Marbley and is expected to last two to three weeks.

Of the 10 former National Century executives previously convicted, six have been sentenced to terms ranging from four to 15 years in prison.

One, Rebecca S. Parrett, remains at large, having taken off while awaiting sentencing. Former CEO Lance K. Poulsen and two others await sentencing.

jandes@dispatch.com