James K. Happ...Before joining National Century, Happ had worked at a health-care company that received millions of dollars in unmerited advances...

...Happ's motive couldn't be about money, Gillen said: He earned more at his employment before and after working at National Century...

Before joining National Century, Happ had worked at a health-care company that received millions of dollars in unmerited advances from National Century.

GUESS WHO OWNED THAT COMPANY? Columbia Homecare Group,Inc. Fort Worth Texas. But one needs to go look at the Largest Bankruptcy Filed July 1999 in Tennessee, just months prior to the FBI raid in Ohio !


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


Jury begins deliberating fate of last of 11 National Century execs
Monday, December 15, 2008 7:54 PM
By Jodi Andes

THE COLUMBUS DISPATCH
Closing arguments today in federal court were the beginning of the end for trials involving executives in the nation's largest case of fraud by a privately held company.

The criminal cases against officials of National Century Financial Enterprises started when the company collapsed into bankruptcy more than six years ago.

James K. Happ, 48, who oversaw the purchase of accounts receivable at the Dublin-based company, is charged with fraud tied to the company's 2002 collapse. He is the last of 11 executives charged with fraud to have his case go through the court.

The jury is expected to begin deliberations first thing Tuesday.

Before joining National Century, Happ had worked at a health-care company that received millions of dollars in unmerited advances from National Century."He knew about the problems at NCFE before he joined and did it anyway. This is a man who joined with eyes wide open," federal prosecutor N. Nathan Dimock said in closing arguments.

National Century bought accounts receivable from health-care providers and collected them for a fee. Cash to buy the accounts receivable was generated by the sale of bonds to investors. But investors were never told about money being given to health-care providers without getting the accounts receivable in return, prosecutors have alleged.

Investors should have known about the advances because it was disclosed in the company's financial documents, said Happ's defense attorney, Craig A. Gillen.

Gillen stood beside a large numeral "0" placed on an easel. He said the zero represented the amount of false statements Happ gave to investors, the number of financial reports he falsified and the number of times he lied to federal investigators.

"Jim Happ didn't commit any crime. Didn't join any conspiracy. He didn't have any motive to," Gillen said.

Federal prosecutors Dimock and Doug Squires have said Happ had the motive to further the conspiracy because his and others' quarterly bonuses grew with each advance to health-care providers.

But Happ's motive couldn't be about money, Gillen said: He earned more at his employment before and after working at National Century.

Happ's attorneys did not put any witnesses on the stand, nor did he testify in the 11-day trial.

Happ, 48, faces charges of conspiracy, money-laundering conspiracy and three counts of wire fraud in U.S. District Court in Columbus.

Ten executives of the defunct health-care lender have been convicted for their roles in a multibillion-dollar fraud that bankrupted health-care companies and hurt investors, including pension funds, across the country.
Six of those convicted 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