I once had a brilliant Economics Professor that stressed the value of one’s country’s currency. My currency, the US Dollar, is only as good as my government. We of course had the STRONGEST, MOST TRUSTED currency in the WORLD.
I listened to Rep Kanjorski from PA on C-Span. I understand he is searching for information on behaviors that occurred over the past twenty years that has crippled our financial system and all that follows. By the way, I am one US citizen that truly understands how we were once the most trusted system in the WORLD. I am on my third passport. It is my understanding that Rep Kanjorski and I assume others, are searching for information on HOW our country is in this crisis. The WORLD’s trust in OUR financial system is GONE!
I would appreciate it very much if you would direct this to Rep Kanjorski or Rep Kucinich.
Please, do not allow the American people to believe “the low-income housing” was the cause of this. Rep Kanjorski stated it very well. Lack of communication to the American people can or will not be acceptable in this time of crisis. As complicated and complex as this crisis is, to allow the American people to inform themselves through the ‘mainstream’ media venues vs. the ‘state of the art’ tools that could be used is a BIG MISTAKE. There are better ways in 2009. Mainstream media is not the tool to use to gather the support of the American people.
I believe this mentality and mantra TOO BIG TO FAIL is all the proof we need to get to the root of the systemic tolerance and refusal to adapt in our democracy and the rule of law. The refusal to change or confront the failed methods that continue to be so detrimental to our country’s once greatness is why we are here now, in a crisis. We must remember that the failing healthcare industry was TOO BIG TO FAIL. The Financial Institutes that financed these fraudulent corporations were TOO BIG TO FAIL. Were exceptions made to Healthcare Corporations and Financial Institutions fraudulent behaviors because they were TOO BIG TO FAIL?
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
WASHINGTON, D.C.
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994. Columbia/HCA will pay $71 million to settle a tax dispute with the IRS. The agency had originally sought $276 million in back taxes and interest, in the dispute involving $525 million in stock options deducted by Hospital Corporation of America (HCA). Under the settlement, the IRS will drop charges that HCA, which was acquired by Columbia in 1994, paid unreasonable compensation or golden parachute payments in the form of stock options to more than 100 executives and managers as part of a management-led buyout of HCA in 1989.
10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006:
Jul 28, 2003; 2003-87; SEC Settles Enforcement Proceedings against J.P. Morgan Chase and Citigroup
FOR IMMEDIATE RELEASE;
J.P. Morgan Chase Agrees to Pay $135 Million to Settle SEC Allegations that It Helped Enron Commit Fraud;
Citigroup Agrees to Pay $120 Million to Settle SEC Allegations that It Helped Enron and Dynegy Commit Fraud;
The following is an excerpt from a 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors.
National Century Financial Enterprises litigation.
JPMorgan Chase, JPMorgan Chase Bank, JPMorgan Partners, Beacon Group, LLC and three current or former Firm employees have been named as defendants in more than a dozen actions filed in or transferred to the United States District Court for the Southern District of Ohio (the "MDL Litigation"). In the majority of these actions, Bank One, Bank One, N.A., and Banc One Capital Markets, Inc. are also named as defendants.
JPMorgan Chase Bank and Bank One, N.A. are also defendants in an action brought by The Unencumbered Assets Trust ("UAT"), a trust created for the benefit of the creditors of National Century Financial Enterprises, Inc. ("NCFE") as a result of NCFE's Plan of Liquidation in bankruptcy.
"...the Order finds that JPMorgan Chase was a cause of NCFE's violations of Section 17(a)(3) of the Securities Act, requires JPMorgan Chase to cease and desist from committing or causing any violations and any future violations of Section 17(a)(3) of the Securities Act, and orders JPMorgan Chase to pay disgorgement of $1,286,808.82 and prejudgment interest of $711,335.76. JPMorgan Chase consented to the issuance of the Order without admitting or denying any of the findings therein."
JP Morgan Settles SEC Proceeding Relating to Activities as Trustee to National Century Financial Enterprises
The SEC settled administrative proceedings against JPMorgan Chase & Co relating to its activities as an asset-backed indenture trustee for certain special-purpose subsidiary programs (programs) of National Century Financial Enterprises, Inc. (NCFE), formerly a Dublin, Ohio healthcare financing company, during the approximate period 1999-2002. According to the SEC's Order, JPMorgan Chase and Bank One Corporation, which merged into JPMorgan Chase in 2004, at the instruction of NCFE, made transfers between reserve accounts in the programs that contradicted NCFE's representations to investors about how the reserve accounts would be used and contravened the requirements of the indentures governing the programs. In addition, the Order finds that pursuant to NCFE's instructions, JPMorgan Chase and Bank One made month-end transfers of huge amounts of reserve account funds and that these transfers helped NCFE mask substantial and growing reserve account shortfalls. Based on the above, the Order finds that JPMorgan Chase was a cause of NCFE's violations of Section 17(a)(3) of the Securities Act, requires JPMorgan Chase to cease and desist from committing or causing any violations and any future violations of Section 17(a)(3) of the Securities Act, and orders JPMorgan Chase to pay disgorgement of $1,286,808.82 and prejudgment interest of $711,335.76. JPMorgan Chase consented to the issuance of the Order without admitting or denying any of the findings therein. In the Matter of JPMorgan Chase & Co.
The Asset-Backed Securities Danger
NCFE was basically a financial "factor," advancing cash to hospitals, physicians, and other health-care facilities in exchange for their receivables—the delayed payments made by insurance companies and government agencies for patients' treatment. NCFE would place these receivables into pools, then issue derivative securities—known as asset-backed securities—backed by the expected insurance payments
All of the Debtors' outstanding bonds at this time consist of:
Amount Issuer Indenture Trustee
------ ------ -----------------
$924,995,000 NPF VI, Inc. JP Morgan Chase & Co.
$2,047,500,000 NPF XII, Inc. Bank One, N.A.
In papers filed with the Bankruptcy Court this week, the Company reports that, as of September 30, 2002, its books and records reflected approximately $3.8 billion in assets and approximately $3.6 billion in liabilities.
An Investor Report dated October 23, 2002, and delivered to Bank One reports that:
(a) NCFE held $851,993 in a Seller Credit Reserve Account as
of October 1, 2002, when there was supposed to be around
$145 million in that account on Oct. 1;
(b) NCFE held $498,321 in an Offset Reserve Account on
Oct. 1, when $44 million should have been on deposit; and
A little history of National Century Financial Enterprises (NCFE):
Prior to bankruptcy, NCFE provided financing to various healthcare providers through wholly-owned special-purpose vehicles, including NPF VI and NPF XII, which purchased discounted accounts receivable to be paid under third-party insurance programs. NPF VI and NPF XII financed the purchases of such receivables, primarily through private placements of notes.
HEALTHCARE, FINANCIAL INSTITUTES, FDIC BANKS, AUTO INDUSTRY & FRAUD
CORPORATE BANKRUPTCY and its finance tool, Debtor in Possession (DIP)
The LARGEST ‘PRIVATE FINANCIAL INSTITUTION’ fraud case in our history
The LARGEST ‘PRIVATE HEALTHCARE’ Bankruptcy /Fraud case in our history
The LARGEST ‘PRIVATE FINANCIAL INSTITUTION’ fraud case in our history: National Century Financial Enterprises Inc. National Century Financial Enterprises, Inc. role in FINANCING PUBLICLY TRADED HEALTHCARE COMPANIES with their ‘divestitures’ of their home healthcare and skilled nursing facilities into a PRIVATE healthcare company, Medshares and affiliates. We must recall the stock prices of the publicly traded companies were falling rapidly especially after the healthcare reform bill passed.
The federal prosecutor noted in the NCFE case: 'Ladies and gentlemen, this is a case of staggering fraud,' Wise said. 'It is one of the largest frauds the FBI has ever investigated. The total is over $2 billion.' It's a game that ended only after greed consumed company reserves and investor money dried up. That's the history of National Century Financial Enterprises, federal prosecutor Leo Wise told jurors in closing arguments yesterday in the trial of Lance K. Poulsen, 65, the company's founder and chief executive.
A very interesting part of the NCFE case is what was not disclosed: the Medshares connection. Medshares and its affiliates filed the largest Bankruptcy Case in the Western District in Memphis, Tennessee on July 29, 1999. The majority of dockets in this Bankruptcy Case were those that James K Happ divested six months earlier while he was CFO at Columbia Homecare Group, Inc. prior to arriving at NCFE, the financier of the divestiture.
Per the SEC Form: prior to joining NCFE, Mr. James K Happ one and only executive acquitted , served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997. In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations.
Declining share price for the LARGEST PUBLICLY TRADED Healthcare companies were attributed to the assets held in home health agencies. With Healthcare Reform in 1997, reduced payments for Medicare/Medicaid payments for home health agencies would not be a profitable entity to retain. How would they be able to sell? Who would purchase these losing not profitable assets?
Note: The divestiture of all of Columbia/HCA's home care operations was financed by National Century Financial Enterprises, Inc. ; all of Columbia/HCA's home care operations were filed in the largest Bankruptcy Case in the Western District in Memphis, Tennessee on July 29, 1999. Corporate Bankruptcy’s financial tool, Debtor in Possession (DIP) FINANCE was utilized In the LARGEST PRIVATE BANKRUPTCY case in the history of Western Tennessee’s Bankruptcy Court. A majority of dockets in this case were the losing entities of Columbia Homecare Group, Inc.
The divestiture of Columbia/HCA's home care operations were a part of the PUBLICLY traded company’s strategy to improve their share price that was on a steep decline. The Street did not favor the Healthcare Reform Bill which was passed 1997.
National Century Financial Enterprises, Inc.
2006 JPMorgan Chase & Co., the largest U.S. bank by market value, agreed to pay $425 million to settle claims by Arizona noteholders. The noteholders said JPMorgan and other banks underwrote or were trustees of the notes used to defraud investors.
At trial, the government presented evidence that the defendants engaged in a scheme to deceive investors and rating agencies about the financial health of NCFE and how investor monies would be used. Between May 1998 and May 2001, NCFE sold notes to investors with an aggregate value of $4.4 billion, which evidence presented at trial showed were worth approximately six cents on the dollar at the time of NCFE’s bankruptcy in November 2002.
Note: between May 1998 and May 2001, James K Happ, the LAST National Century Financial Enterprises executive to stand trial and the only one ACQUITTED was at NCFE.
Mr. James K Happ National Century fraud case produced one and only acquittal, James K Happ.
National Century fraud case produces 1st acquittal
DECEMBER 2008
Prosecutors' case fell short, juror says
National Century fraud case produces 1st acquittal
Thursday, December 18, 2008 3:29 AM Prosecutors' case fell short, juror says
By Jodi Andes THE COLUMBUS DISPATCH
The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he
and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
A very interesting part of the NCFE case is what was not disclosed: the Medshares connection. Medshares and its affiliates was the largest Bankruptcy Case in the Western District in Memphis, Tennessee on July 29, 1999. This case held all of the Columbia entities that James K Happ divested prior to his arrival at NCFE. The majority of the dockets in the Medshares case were James K Happ’s ‘divested assets financed by NCFE.
Prior to joining Med Diversified, James Happ served as executive vice president of National Century Financial Enterprises ("NCFE"), a health care financing company and the primary lender of Med Diversified. In his three years in this role, he restructured the Servicer department to improve operational performance and accelerated the utilization of technology to increase operations.
Business First of Columbus - by Kevin Kemper
National Century computer system unreliable
MARCH 5, 2008: Important information on a National Century Financial Enterprises Inc. computer system was either lost or tampered with, a computer expert testified for the defense, however the government did its best to call the witness's testimony into question.
Jon Bryant, an information technology computer consultant that used to work at National Century, told jury members on Tuesday and Wednesday that the AS/400 mainframe computer used by National Century to track accounts receivable was missing information after a crash that left nine of its hard drives inoperable.
Summer of 1998
National Century Financial Enterprises: Medshares Consolidated, Inc., entered into an agreement to purchase certain home health agencies from Columbia/HCA, now known as HCA, Inc. As part of the Asset Purchase Agreement, Medshares agreed to purchase assets of certain home healthcare agencies owned by HCA and certain subsidiaries and joint ventures, which assets included accounts receivable outstanding at the time of closing. (James K Happ was the CFO at Columbia (HCA) responsible for the ‘divestiture’. Once again, James K Happ was the one and only executive acquitted from National Century Financial Enterprises, Inc.)
At the time of the sale transaction between Medshares and HCA, the valuation of the purchase accounts receivable was uncertain. Under the Medshares Purchase Agreement, Medshares agreed to
purchase the "Threshold Amount" of the accounts receivable. If more than the Threshold Amount was collected, the excess funds would be returned to HCA. "...After the sale transaction between HCA and Medshares, Medshares continued to receive periodic interim payments from Medicare under HCA's provider number."
HCA sued NCFE in Tennessee state court in a case styled Columbia Healthcare Corp. v. Medshares Consolidated, Inc., et al.
Corporate Bankruptcy’s financial tool, Debtor in Possession (DIP) FINANCE was utilized In the LARGEST PRIVATE BANKRUPTCY case in the history of Western Tennessee’s Bankruptcy Court. A majority of dockets in this case were the losing entities of Columbia Healthcare Corp.
On May 4, 1999, NCFE made a demand on HCA for the return of the $1,305,137. HCA has never returned the money. NCFE filed counterclaims in the Tennessee Litigation to recover the $1,305,137 amount.
Of course there is so much more……to be continued!
Wednesday, January 28, 2009
Office of Public Liaison & Intergovernmental Affairs...My comment
OPL-IGA
Office of Public Liaison & Intergovernmental Affairs (OPL-IGA) is the front door to the White House through which everyone can participate and inform the work of the President
Comment sent:
Please, do not allow the American people to believe “the low-income housing” was the cause of this. Rep Kanjorski stated it very well. Lack of communication to the American people can or will not be acceptable in this time of crisis. As complicated and complex as this crisis is, to allow the American people to inform themselves through the ‘mainstream’ media venues vs. the ‘state of the art’ tools that could be used is a BIG MISTAKE. There are better ways in 2009. Mainstream media is not the tool to use to gather the support of the American people.
We must remember that the failing healthcare industry was TOO BIG TO FAIL. The Banks that financed these fraudulent corporations were TOO BIG TO FAIL. Were exceptions made to Healthcare Corporations and Financial Institutions fraudulent behaviors because they were TOO BIG TO FAIL?
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
WASHINGTON, D.C.
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994. Columbia/HCA will pay $71 million to settle a tax dispute with the IRS. The agency had originally sought $276 million in back taxes and interest, in the dispute involving $525 million in stock options deducted by Hospital Corporation of America (HCA). Under the settlement, the IRS will drop charges that HCA, which was acquired by Columbia in 1994, paid unreasonable compensation or golden parachute payments in the form of stock options to more than 100 executives and managers as part of a management-led buyout of HCA in 1989.
10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006:
Jul 28, 2003; 2003-87; SEC Settles Enforcement Proceedings against J.P. Morgan Chase and Citigroup
FOR IMMEDIATE RELEASE;
J.P. Morgan Chase Agrees to Pay $135 Million to Settle SEC Allegations that It Helped Enron Commit Fraud;
Citigroup Agrees to Pay $120 Million to Settle SEC Allegations that It Helped Enron and Dynegy Commit Fraud;
Office of Public Liaison & Intergovernmental Affairs (OPL-IGA) is the front door to the White House through which everyone can participate and inform the work of the President
Comment sent:
Please, do not allow the American people to believe “the low-income housing” was the cause of this. Rep Kanjorski stated it very well. Lack of communication to the American people can or will not be acceptable in this time of crisis. As complicated and complex as this crisis is, to allow the American people to inform themselves through the ‘mainstream’ media venues vs. the ‘state of the art’ tools that could be used is a BIG MISTAKE. There are better ways in 2009. Mainstream media is not the tool to use to gather the support of the American people.
We must remember that the failing healthcare industry was TOO BIG TO FAIL. The Banks that financed these fraudulent corporations were TOO BIG TO FAIL. Were exceptions made to Healthcare Corporations and Financial Institutions fraudulent behaviors because they were TOO BIG TO FAIL?
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
WASHINGTON, D.C.
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994. Columbia/HCA will pay $71 million to settle a tax dispute with the IRS. The agency had originally sought $276 million in back taxes and interest, in the dispute involving $525 million in stock options deducted by Hospital Corporation of America (HCA). Under the settlement, the IRS will drop charges that HCA, which was acquired by Columbia in 1994, paid unreasonable compensation or golden parachute payments in the form of stock options to more than 100 executives and managers as part of a management-led buyout of HCA in 1989.
10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006:
Jul 28, 2003; 2003-87; SEC Settles Enforcement Proceedings against J.P. Morgan Chase and Citigroup
FOR IMMEDIATE RELEASE;
J.P. Morgan Chase Agrees to Pay $135 Million to Settle SEC Allegations that It Helped Enron Commit Fraud;
Citigroup Agrees to Pay $120 Million to Settle SEC Allegations that It Helped Enron and Dynegy Commit Fraud;
Thursday, January 8, 2009
Six years and four criminal trials ...only the HAPP trial was missing computer files and he was acquitted
“This was the most document-intensive case this office has ever undertaken.”
except for the missing COMPUTER FILES .....
Funny , that is what James K Happ, the only executive to be acquitted, was in charge of divestiture at at Columbia Homecare Group prior to arriving at NCFE...
Friday, December 26, 2008
Newsmakers
National Century saga closes with 10 convictions
Business First of Columbus - by Kevin Kemper
Six years and four criminal trials after a Central Ohio company’s $2.8 billion collapse, the resulting legal saga wrapped up in 2008 with seven former executives convicted – including one who remains on the run – and one who was acquitted on charges stemming from the scam.
The collapse of Dublin-based National Century Financial Enterprises Inc. kept courtrooms inside the Joseph P. Kinneary U.S. District Courthouse in Columbus busy for most of the year with criminal trials and hearings involving former executives and their associates.
Once the largest health-care financing company in the nation, National Century fell into bankruptcy in 2002 after what the government alleged was a massive fraud unraveled. In the six years since, 10 of 11 executives the government targeted for prosecution either pleaded guilty or were convicted on criminal charges for their actions.
“This case set a standard for prosecuting white-collar criminal cases,” said Fred Alverson, spokesman for the U.S. Attorney’s office in Columbus. “This was the most document-intensive case this office has ever undertaken.”
except for the missing COMPUTER FILES .....
Funny , that is what James K Happ, the only executive to be acquitted, was in charge of divestiture at at Columbia Homecare Group prior to arriving at NCFE...
Friday, December 26, 2008
Newsmakers
National Century saga closes with 10 convictions
Business First of Columbus - by Kevin Kemper
Six years and four criminal trials after a Central Ohio company’s $2.8 billion collapse, the resulting legal saga wrapped up in 2008 with seven former executives convicted – including one who remains on the run – and one who was acquitted on charges stemming from the scam.
The collapse of Dublin-based National Century Financial Enterprises Inc. kept courtrooms inside the Joseph P. Kinneary U.S. District Courthouse in Columbus busy for most of the year with criminal trials and hearings involving former executives and their associates.
Once the largest health-care financing company in the nation, National Century fell into bankruptcy in 2002 after what the government alleged was a massive fraud unraveled. In the six years since, 10 of 11 executives the government targeted for prosecution either pleaded guilty or were convicted on criminal charges for their actions.
“This case set a standard for prosecuting white-collar criminal cases,” said Fred Alverson, spokesman for the U.S. Attorney’s office in Columbus. “This was the most document-intensive case this office has ever undertaken.”
Wednesday, January 7, 2009
$5.89 MILLION IN CIVIL FRAUD SETTLEMENTS...home healthcare agency
MEDIA RELEASE
Attention: News Director U.S. DEPARTMENT OF JUSTICE
For Immediate Release DAVID L. HUBER
March 23, 2007 UNITED STATES ATTORNEY
Western District of Kentucky
Contact: Sandy Focken
(502) 582-5911
******************************************************************************
FEDERAL FALSE CLAIMS ACT CASE RESULT IN
$5.89 MILLION IN CIVIL FRAUD SETTLEMENTS
- Former owner of Louisville, Kentucky, based home healthcare agency, and his wife, both
now residing in Dallas, Texas, pay $2.3 million
- Medshares Diversified, Inc., a former Memphis, Tennessee, home healthcare agency, pays
$2,242,470
- National Century Financial Enterprises, Inc. pays $1.35 million.
*** *** ***
David L. Huber, United States Attorney for the Western District of Kentucky, along with the
Department of Justice, Commercial Litigation Branch, Civil Frauds Division, and the Office of the
Inspector General for the Department of Health and Human Services, announces that after a multiyear
investigation, the United States has reached civil fraud settlements totaling over $5.89 million
with several defendants for their role in alleged violations of the federal False Claims Act. In
particular, William Riddle and Robin Riddle, both of Dallas, Texas, have paid the United States
$2.3 million to settle certain civil fraud claims; Medshares Diversified, Inc., a former Memphis,
Tennessee, home healthcare agency, through its bankruptcy proceedings, paid $2,242,470; and
National Century Financial Enterprises, Inc., through its bankruptcy proceedings, recently paid
$1.35 million..
Background
In May, 1999, 86 former employees of a Louisville based home healthcare entity known as
Homecare and Hospital Management, Inc. (“HHM”), filed a federal whistle blower lawsuit in
Louisville, Kentucky. United States ex rel. Employees of HHM 1-86 v. Homecare and Hospital
Management, Inc., William Riddle, Jr., National Century Financial Enterprises, Inc., et al., Civil
Action No. 3:99CV-340-H (W.D. Ky). The complaint asserted a barrage of claims, including
violations of the federal False Claims Act. The complaint levied these claims against numerous
defendants, including William Riddle, the former CEO of HHM, and Lance Poulsen, the former
CEO of National Century Financial Enterprises, Inc. (“NCFE”). Mr. Poulsen has since been
indicted for his involvement in an alleged multi-billion dollar criminal fraud case being prosecuted
by the United States Attorney’s Office for the Southern District of Ohio.
HHM was a national home health agency headquartered in Prospect, Kentucky between 1993
through 1998. From its inception, HHM’s business plan was focused on growth accomplished
through the aggressive acquisition of existing home health care businesses. Between fiscal year
(“FY”)1993 and FY 1996 HHM purchased 24 health care businesses, increasing its revenue from
$23.7 million in FY 1994 to $166.8 million in FY 1996. To finance these acquisitions, HHM
utilized NCFE proceeds to supply the funds needed to purchase these agencies. HHM, in turn,
passed through to Medicare all of the financing costs associated with these NCFE funds, thereby
having the Medicare program “underwrite” HHM’s acquisition schedule. It did so by claiming that
these financing costs were reasonably related to patient care and, therefore, reimbursable by
Medicare. In fact, costs associated with these acquisitions were not reimbursable, and their
submission to Medicare for reimbursement was fraudulent.
NCFE was HHM’s primary lender. NCFE’s method of providing funding to HHM was
through a mechanism known as accounts receivable financing. Through this process, HHM would
pledge essentially all of its Medicare receivables to receive advance funding from NCFE. Accounts
receivable financing essentially permitted HHM to immediately gain access to funds using HHM’s
receivables as collateral, thereby permitting HHM to have immediate use of its receivables before
they were actually paid by Medicare.
By 1998, HHM was in dire financial straits, and sold many of its subsidiaries to Medshares.
Nevertheless, in August 1998, HHM was forced into bankruptcy. Many employees were not paid
certain employee benefits, such as paid days off, bonuses, or final paychecks. Mr. Riddle was
named as a defendant in several lawsuits initiated by former employees as well as NCFE (which was
owed millions of dollars from HHM).
Investigation
As part of its investigation, the United States developed certain facts indicating that William
Riddle and Lance Poulsen conspired to defraud the Medicare system by using Medicare to finance
HHM’s growth without the need for investors to pay for HHM’s acquisitions. Funding by NCFE
was timed by William Riddle and Lance Poulsen to create the illusion that NCFE was offering
financing for patient care when, in fact, financing was being used to buy new HHM subsidiaries.
Forensic accounting demonstrated that HHM then passed through its financing costs associated with
NCFE funds used to purchase these subsidiaries to Medicare for reimbursement, despite the fact that
these funds were not used for patient care. The United States estimated that Medicare paid HHM
$2,837,628.00 as a result of this fraudulent conduct.
Medshares, for its part, was investigated by the United States for (1) submitting false claims
to the United States in the form of fraudulent cost reports; (2) submitting for Medicare
reimbursement expenses related to patient care which were not qualified expenses related to actual
patient care; and, (3) engaging in practices that included improperly charging Medicare for NCFE
fees, improperly allocating amounts between HHM’s corporate and regional costs, seeking
reimbursement for “ghost employees” and improperly charging management fees to the Medicare
program. In 1999 Medshares filed a chapter 11 bankruptcy petition in the Western District of
Tennessee, case number 99-29024-L.
William Riddle subsequently moved to Dallas, Texas with his new wife, Robin Riddle, and
entered into a marital partition agreement that effectively severed any rights William Riddle would
have to certain community property realized by his marriage to Robin Riddle. The United States
alleged that this marital partition agreement was a sham, entered into by the Riddles to shield their
assets from William Riddle’s liability as a result of HHM’s debacle.
Settlements
In March, 2006, William Riddle and Robin Riddle, denying all liability, entered into a
settlement with the United States, agreeing to pay $2.3 million. In July 2006, NCFE agreed to settle
the United States’ claims against it for $1.35 million, as directed through its bankruptcy proceedings.
In July 2003, Medshares entered into a consent judgment with the United States settling its liability
for $2,807,924. The net amount realized from this bankruptcy settlement was $2,242,470. The
federal whistle blowers will receive 15% of the total settlement amounts received by the United
States in accordance with their rights under the federal False Claims Act.
This case was prosecuted by Assistant United States Attorneys William F. Campbell and
Benjamin S. Schecter, and Vanessa Reed, Trial Attorney, with the Department of Justice
Commercial Litigation Branch Civil Frauds Division, with assistance from the Office of the
Inspector General for the Department of Health and Human Services.
- END
Attention: News Director U.S. DEPARTMENT OF JUSTICE
For Immediate Release DAVID L. HUBER
March 23, 2007 UNITED STATES ATTORNEY
Western District of Kentucky
Contact: Sandy Focken
(502) 582-5911
******************************************************************************
FEDERAL FALSE CLAIMS ACT CASE RESULT IN
$5.89 MILLION IN CIVIL FRAUD SETTLEMENTS
- Former owner of Louisville, Kentucky, based home healthcare agency, and his wife, both
now residing in Dallas, Texas, pay $2.3 million
- Medshares Diversified, Inc., a former Memphis, Tennessee, home healthcare agency, pays
$2,242,470
- National Century Financial Enterprises, Inc. pays $1.35 million.
*** *** ***
David L. Huber, United States Attorney for the Western District of Kentucky, along with the
Department of Justice, Commercial Litigation Branch, Civil Frauds Division, and the Office of the
Inspector General for the Department of Health and Human Services, announces that after a multiyear
investigation, the United States has reached civil fraud settlements totaling over $5.89 million
with several defendants for their role in alleged violations of the federal False Claims Act. In
particular, William Riddle and Robin Riddle, both of Dallas, Texas, have paid the United States
$2.3 million to settle certain civil fraud claims; Medshares Diversified, Inc., a former Memphis,
Tennessee, home healthcare agency, through its bankruptcy proceedings, paid $2,242,470; and
National Century Financial Enterprises, Inc., through its bankruptcy proceedings, recently paid
$1.35 million..
Background
In May, 1999, 86 former employees of a Louisville based home healthcare entity known as
Homecare and Hospital Management, Inc. (“HHM”), filed a federal whistle blower lawsuit in
Louisville, Kentucky. United States ex rel. Employees of HHM 1-86 v. Homecare and Hospital
Management, Inc., William Riddle, Jr., National Century Financial Enterprises, Inc., et al., Civil
Action No. 3:99CV-340-H (W.D. Ky). The complaint asserted a barrage of claims, including
violations of the federal False Claims Act. The complaint levied these claims against numerous
defendants, including William Riddle, the former CEO of HHM, and Lance Poulsen, the former
CEO of National Century Financial Enterprises, Inc. (“NCFE”). Mr. Poulsen has since been
indicted for his involvement in an alleged multi-billion dollar criminal fraud case being prosecuted
by the United States Attorney’s Office for the Southern District of Ohio.
HHM was a national home health agency headquartered in Prospect, Kentucky between 1993
through 1998. From its inception, HHM’s business plan was focused on growth accomplished
through the aggressive acquisition of existing home health care businesses. Between fiscal year
(“FY”)1993 and FY 1996 HHM purchased 24 health care businesses, increasing its revenue from
$23.7 million in FY 1994 to $166.8 million in FY 1996. To finance these acquisitions, HHM
utilized NCFE proceeds to supply the funds needed to purchase these agencies. HHM, in turn,
passed through to Medicare all of the financing costs associated with these NCFE funds, thereby
having the Medicare program “underwrite” HHM’s acquisition schedule. It did so by claiming that
these financing costs were reasonably related to patient care and, therefore, reimbursable by
Medicare. In fact, costs associated with these acquisitions were not reimbursable, and their
submission to Medicare for reimbursement was fraudulent.
NCFE was HHM’s primary lender. NCFE’s method of providing funding to HHM was
through a mechanism known as accounts receivable financing. Through this process, HHM would
pledge essentially all of its Medicare receivables to receive advance funding from NCFE. Accounts
receivable financing essentially permitted HHM to immediately gain access to funds using HHM’s
receivables as collateral, thereby permitting HHM to have immediate use of its receivables before
they were actually paid by Medicare.
By 1998, HHM was in dire financial straits, and sold many of its subsidiaries to Medshares.
Nevertheless, in August 1998, HHM was forced into bankruptcy. Many employees were not paid
certain employee benefits, such as paid days off, bonuses, or final paychecks. Mr. Riddle was
named as a defendant in several lawsuits initiated by former employees as well as NCFE (which was
owed millions of dollars from HHM).
Investigation
As part of its investigation, the United States developed certain facts indicating that William
Riddle and Lance Poulsen conspired to defraud the Medicare system by using Medicare to finance
HHM’s growth without the need for investors to pay for HHM’s acquisitions. Funding by NCFE
was timed by William Riddle and Lance Poulsen to create the illusion that NCFE was offering
financing for patient care when, in fact, financing was being used to buy new HHM subsidiaries.
Forensic accounting demonstrated that HHM then passed through its financing costs associated with
NCFE funds used to purchase these subsidiaries to Medicare for reimbursement, despite the fact that
these funds were not used for patient care. The United States estimated that Medicare paid HHM
$2,837,628.00 as a result of this fraudulent conduct.
Medshares, for its part, was investigated by the United States for (1) submitting false claims
to the United States in the form of fraudulent cost reports; (2) submitting for Medicare
reimbursement expenses related to patient care which were not qualified expenses related to actual
patient care; and, (3) engaging in practices that included improperly charging Medicare for NCFE
fees, improperly allocating amounts between HHM’s corporate and regional costs, seeking
reimbursement for “ghost employees” and improperly charging management fees to the Medicare
program. In 1999 Medshares filed a chapter 11 bankruptcy petition in the Western District of
Tennessee, case number 99-29024-L.
William Riddle subsequently moved to Dallas, Texas with his new wife, Robin Riddle, and
entered into a marital partition agreement that effectively severed any rights William Riddle would
have to certain community property realized by his marriage to Robin Riddle. The United States
alleged that this marital partition agreement was a sham, entered into by the Riddles to shield their
assets from William Riddle’s liability as a result of HHM’s debacle.
Settlements
In March, 2006, William Riddle and Robin Riddle, denying all liability, entered into a
settlement with the United States, agreeing to pay $2.3 million. In July 2006, NCFE agreed to settle
the United States’ claims against it for $1.35 million, as directed through its bankruptcy proceedings.
In July 2003, Medshares entered into a consent judgment with the United States settling its liability
for $2,807,924. The net amount realized from this bankruptcy settlement was $2,242,470. The
federal whistle blowers will receive 15% of the total settlement amounts received by the United
States in accordance with their rights under the federal False Claims Act.
This case was prosecuted by Assistant United States Attorneys William F. Campbell and
Benjamin S. Schecter, and Vanessa Reed, Trial Attorney, with the Department of Justice
Commercial Litigation Branch Civil Frauds Division, with assistance from the Office of the
Inspector General for the Department of Health and Human Services.
- END
Important information on a National Century Financial Enterprises Inc. computer system was either lost or tampered with
Wednesday, March 5, 2008
IT expert: National Century computer system unreliable
Business First of Columbus - by Kevin Kemper Business First
Important information on a National Century Financial Enterprises Inc. computer system was either lost or tampered with, a computer expert testified for the defense, however the government did its best to call the witness's testimony into question.
Jon Bryant, an information technology computer consultant that used to work at National Century, told jury members on Tuesday and Wednesday that the AS/400 mainframe computer used by National Century to track accounts receivable was missing information after a crash that left nine of its hard drives inoperable.
The crash occurred, Bryant said, sometime after he stopped working for National Century in 2001, possibly when the government gained control of the system during its investigation.
Defense attorneys hired Bryant as an expert witness in 2007 to conduct an analysis of the information contained on National Century's AS/400 system. When Bryant conducted his analysis, he found that there was $300 million in accounts receivable missing from the system due to the crash.
The government has used information from the AS/400 to allege to the jury that millions of dollars went missing from the National Century's accounts.
Dublin-based National Century was a financier of last resort for health-care providers. The firm specialized in buying receivables from medical businesses at a discount, giving them cash up front so they could pay their bills. It then packaged the receivables as asset-backed bonds and sold them to investors.
Five of the company's former executives - Rebecca Parrett, Donald Ayers, Roger Faulkenberry, Randolph Speer and James Dierker - are facing charges of fraud, conspiracy and money laundering for their alleged involvement in National Century's nearly $3 billion collapse and bankruptcy in 2002.
They have all pleaded not guilty to the charges.
When the government got its chance to cross-examine Bryant, Assistant U.S. Attorney Douglas Squires did his best to call Bryant's word into question.
Squires first attempted to show that Bryant was not an information technology expert.
Squires asked Bryant about memos that circulated among National Century executives that suggested computer programs Bryant wrote did not work properly.
Bryant said he was not familiar with those memos.
Squires then asked Bryant about his relationship with Parrett. When Bryant admitted the two are friends, Squires suggested Bryant might lie for her. Bryant said he would not.
Squires also asked Bryant about statements Bryant made to the FBI in 2002. Bryant admitted he told the FBI that the company tried to deceive auditors and that funds were moved among accounts to hide shortfalls.
Squires also suggested that Bryant was disgruntled when he worked for National Century and that he volunteered to be a government witness in the case.
Bryant said neither was true.
Defense attorneys called their third witness after Bryant, a securitizations expert named Gregory Gac.
Gac, owner of Shorewood, Minn.-based Quadrant Financial Group LLC, was hired by the defense at a rate of $450 an hour to analyze the documents that governed National Century's bond funds.
The government has alleged that because the defendants allowed reserve funds for National Century bonds to be depleted, they had committed securities fraud. But Gac said National Century's bond reserve funds were allowed to fluctuate.
Under cross-examination, he admitted that he had sat in on earlier testimony in the trial when the government's star witness said she was behind a massive and ongoing fraud at the company. Gac said he found her testimony, "appalling," and that her behavior gives everyone in the finance industry a black eye.
The defense also called two character witnesses on behalf of Dierker, in advance of his expected testimony on Thursday. Barry Salmons, a friend and vice president of marketing at Huntington National Bank, testified that Dierker was a man of character, integrity and honesty. Susan Horn, a former executive vice president of marketing at Victoria's Secret, said that when Dierker worked for her, he was an outstanding employee with great morals and if she heard him testify she would believe what he said.
IT expert: National Century computer system unreliable
Business First of Columbus - by Kevin Kemper Business First
Important information on a National Century Financial Enterprises Inc. computer system was either lost or tampered with, a computer expert testified for the defense, however the government did its best to call the witness's testimony into question.
Jon Bryant, an information technology computer consultant that used to work at National Century, told jury members on Tuesday and Wednesday that the AS/400 mainframe computer used by National Century to track accounts receivable was missing information after a crash that left nine of its hard drives inoperable.
The crash occurred, Bryant said, sometime after he stopped working for National Century in 2001, possibly when the government gained control of the system during its investigation.
Defense attorneys hired Bryant as an expert witness in 2007 to conduct an analysis of the information contained on National Century's AS/400 system. When Bryant conducted his analysis, he found that there was $300 million in accounts receivable missing from the system due to the crash.
The government has used information from the AS/400 to allege to the jury that millions of dollars went missing from the National Century's accounts.
Dublin-based National Century was a financier of last resort for health-care providers. The firm specialized in buying receivables from medical businesses at a discount, giving them cash up front so they could pay their bills. It then packaged the receivables as asset-backed bonds and sold them to investors.
Five of the company's former executives - Rebecca Parrett, Donald Ayers, Roger Faulkenberry, Randolph Speer and James Dierker - are facing charges of fraud, conspiracy and money laundering for their alleged involvement in National Century's nearly $3 billion collapse and bankruptcy in 2002.
They have all pleaded not guilty to the charges.
When the government got its chance to cross-examine Bryant, Assistant U.S. Attorney Douglas Squires did his best to call Bryant's word into question.
Squires first attempted to show that Bryant was not an information technology expert.
Squires asked Bryant about memos that circulated among National Century executives that suggested computer programs Bryant wrote did not work properly.
Bryant said he was not familiar with those memos.
Squires then asked Bryant about his relationship with Parrett. When Bryant admitted the two are friends, Squires suggested Bryant might lie for her. Bryant said he would not.
Squires also asked Bryant about statements Bryant made to the FBI in 2002. Bryant admitted he told the FBI that the company tried to deceive auditors and that funds were moved among accounts to hide shortfalls.
Squires also suggested that Bryant was disgruntled when he worked for National Century and that he volunteered to be a government witness in the case.
Bryant said neither was true.
Defense attorneys called their third witness after Bryant, a securitizations expert named Gregory Gac.
Gac, owner of Shorewood, Minn.-based Quadrant Financial Group LLC, was hired by the defense at a rate of $450 an hour to analyze the documents that governed National Century's bond funds.
The government has alleged that because the defendants allowed reserve funds for National Century bonds to be depleted, they had committed securities fraud. But Gac said National Century's bond reserve funds were allowed to fluctuate.
Under cross-examination, he admitted that he had sat in on earlier testimony in the trial when the government's star witness said she was behind a massive and ongoing fraud at the company. Gac said he found her testimony, "appalling," and that her behavior gives everyone in the finance industry a black eye.
The defense also called two character witnesses on behalf of Dierker, in advance of his expected testimony on Thursday. Barry Salmons, a friend and vice president of marketing at Huntington National Bank, testified that Dierker was a man of character, integrity and honesty. Susan Horn, a former executive vice president of marketing at Victoria's Secret, said that when Dierker worked for her, he was an outstanding employee with great morals and if she heard him testify she would believe what he said.
Saturday, January 3, 2009
Ask, "What Healthcare companies"? Maybe HCA & IHS ?
"National Century had overfunded certain health-care providers by $50 million to $200 million."
Ask, "What Healthcare companies"? Maybe HCA & IHS ? The two largest healthcare companies in our nation in 1996.
Ooops...1997 HealthCare Reform passed! Had to get rid of the industry known losing entities of thesse giants, Homehealth care.
Take a look at DIP Financing Tool that was used in the largest case in the history of Western Tennessee Bankruptcy Court. In that case, one would view the "Queen of Bankruptcy", Darla Moore and her bankruptcy tool, DIP FInance at its best.
This case would ultimatley benefit her husband's losing assets Columbia Homecare Group financed by NCFE.
Rainwater's aka HCA/TN aka Columbia Homecare Group was dumped into a private company financed by the largest private finance company.
Both of which aer no longer in existence.
But once again, the case in Tennessee was also 'unheard of' just like NCFE.
of HCA/TN,,Columbia Homecare Group---(Ricard Rainwater's Baby)
National Century was once the nation’s largest financier of physician practices and other health-care firms. It specialized in buying doctors’ receivables at discounts so the physicians could quickly secure they cash they needed for their businesses
Thursday, October 2, 2008
NCFE money exec put little stock in Poulsen, company claimsBusiness First of Columbus - by Kevin Kemper
After less than three months on the job, a former National Century Financial Enterprises Inc. executive wrote in his notes that he couldn’t trust statements made by his boss, CEO Lance Poulsen.
William Parizek, once the Dublin company’s director of corporate finance, testified Thursday as the government’s first witness in the fraud trial of Poulsen that he began to question financial decisions of National Century just weeks into his job at the business.
An accountant by training, Parizek started at National Century on Oct. 31, 1996 and left Jan. 16, 1997. Parizek testified Poulsen, who co-founded National Century, hired him to raise capital from investors who were interested in becoming part-owners of the company.
The government has accused Poulsen, 65, on conspiracy, wire fraud, money laundering and securities fraud charges for which he is standing trial in Columbus. Poulsen has pleaded not guilty to all the charges.
Parizek said he moved his family from Wichita, Kan., to join National Century because he had a chance to eventually make nearly $1 million a year if he met all of his job goals.
In order to pitch National Century to investors, Parizek testified he needed a full understanding of the company. A few weeks into his financial education, Parizek told jurors he discovered National Century had overfunded certain health-care providers by $50 million to $200 million.
National Century was once the nation’s largest financier of physician practices and other health-care firms. It specialized in buying doctors’ receivables at discounts so the physicians could quickly secure they cash they needed for their businesses. National Century then packaged the receivables as asset-backed bonds and sold them to investors.
The company collapsed into bankruptcy in 2002, allegedly forcing other medical businesses to fail and prompting the Justice Department to begin looking into the company’s failure. The government has alleged Poulsen and other executives at the company overfunded health-care companies owned by Poulsen and National Century’s other principles in a ploy to enrich themselves.
As Parizek asked more executives about the company, he became convinced the company was not operating legally, he told the jury. It was around that time that Parizek wrote in his notes: “Attribute no value to LKP (Lance K. Poulsen) statements.”
Parizek also wrote: “Attribute little value to internally generated documentation and data.”
On the day he resigned, more than two months after he joined the business, Parizek said Poulsen called him on his office phone. Poulsen started off friendly, Parizek told the jury, and then became angry and vulgar.
In his notes, Parizek wrote that Poulsen said: “I don’t know what your agenda is, but the only ... agenda in this company is mine.” Parizek also wrote in his notes that Poulsen said he didn’t need Parizek’s morality.
Under questioning by William Terpening, Poulsen’s attorney, Parizek sparred over whether he was fired or resigned from his job. Parizek maintained he resigned.
“You were fired by Mr. Poulsen,” Terpening said.
“That was not the case,” Parizek replied.
When Terpening asked Parizek about many of National Century’s financial inner workings, the witness said he couldn’t recall details. Terpening asked why Parizek’s detailed notes should then be considered accurate.
Terpening also asked why Parizek didn’t go to the government if he was concerned about National Century. Parizek answered he wanted to move on and didn’t think about National Century until the government contacted him in 2002 after the company went bankrupt.
Ask, "What Healthcare companies"? Maybe HCA & IHS ? The two largest healthcare companies in our nation in 1996.
Ooops...1997 HealthCare Reform passed! Had to get rid of the industry known losing entities of thesse giants, Homehealth care.
Take a look at DIP Financing Tool that was used in the largest case in the history of Western Tennessee Bankruptcy Court. In that case, one would view the "Queen of Bankruptcy", Darla Moore and her bankruptcy tool, DIP FInance at its best.
This case would ultimatley benefit her husband's losing assets Columbia Homecare Group financed by NCFE.
Rainwater's aka HCA/TN aka Columbia Homecare Group was dumped into a private company financed by the largest private finance company.
Both of which aer no longer in existence.
But once again, the case in Tennessee was also 'unheard of' just like NCFE.
of HCA/TN,,Columbia Homecare Group---(Ricard Rainwater's Baby)
National Century was once the nation’s largest financier of physician practices and other health-care firms. It specialized in buying doctors’ receivables at discounts so the physicians could quickly secure they cash they needed for their businesses
Thursday, October 2, 2008
NCFE money exec put little stock in Poulsen, company claimsBusiness First of Columbus - by Kevin Kemper
After less than three months on the job, a former National Century Financial Enterprises Inc. executive wrote in his notes that he couldn’t trust statements made by his boss, CEO Lance Poulsen.
William Parizek, once the Dublin company’s director of corporate finance, testified Thursday as the government’s first witness in the fraud trial of Poulsen that he began to question financial decisions of National Century just weeks into his job at the business.
An accountant by training, Parizek started at National Century on Oct. 31, 1996 and left Jan. 16, 1997. Parizek testified Poulsen, who co-founded National Century, hired him to raise capital from investors who were interested in becoming part-owners of the company.
The government has accused Poulsen, 65, on conspiracy, wire fraud, money laundering and securities fraud charges for which he is standing trial in Columbus. Poulsen has pleaded not guilty to all the charges.
Parizek said he moved his family from Wichita, Kan., to join National Century because he had a chance to eventually make nearly $1 million a year if he met all of his job goals.
In order to pitch National Century to investors, Parizek testified he needed a full understanding of the company. A few weeks into his financial education, Parizek told jurors he discovered National Century had overfunded certain health-care providers by $50 million to $200 million.
National Century was once the nation’s largest financier of physician practices and other health-care firms. It specialized in buying doctors’ receivables at discounts so the physicians could quickly secure they cash they needed for their businesses. National Century then packaged the receivables as asset-backed bonds and sold them to investors.
The company collapsed into bankruptcy in 2002, allegedly forcing other medical businesses to fail and prompting the Justice Department to begin looking into the company’s failure. The government has alleged Poulsen and other executives at the company overfunded health-care companies owned by Poulsen and National Century’s other principles in a ploy to enrich themselves.
As Parizek asked more executives about the company, he became convinced the company was not operating legally, he told the jury. It was around that time that Parizek wrote in his notes: “Attribute no value to LKP (Lance K. Poulsen) statements.”
Parizek also wrote: “Attribute little value to internally generated documentation and data.”
On the day he resigned, more than two months after he joined the business, Parizek said Poulsen called him on his office phone. Poulsen started off friendly, Parizek told the jury, and then became angry and vulgar.
In his notes, Parizek wrote that Poulsen said: “I don’t know what your agenda is, but the only ... agenda in this company is mine.” Parizek also wrote in his notes that Poulsen said he didn’t need Parizek’s morality.
Under questioning by William Terpening, Poulsen’s attorney, Parizek sparred over whether he was fired or resigned from his job. Parizek maintained he resigned.
“You were fired by Mr. Poulsen,” Terpening said.
“That was not the case,” Parizek replied.
When Terpening asked Parizek about many of National Century’s financial inner workings, the witness said he couldn’t recall details. Terpening asked why Parizek’s detailed notes should then be considered accurate.
Terpening also asked why Parizek didn’t go to the government if he was concerned about National Century. Parizek answered he wanted to move on and didn’t think about National Century until the government contacted him in 2002 after the company went bankrupt.
Oh! Did I mention? James K. Happ, arrived at NCFE after dumping Columbia's losing assets into the largest Bankruptcy case in Tennessee only to be ,,,
...financed by National Centruy Finanacial Enterprises, Inc. (NCFE)
Funny, he was the one to divest the losing assets dragging HCA's stock price to its lowest in years. Shall I continue?
If I could only reach Bob Woodward!
Jury acquits last National Century exec
Wednesday, December 17, 2008 1:54 PM
By Jodi Andes
THE COLUMBUS DISPATCH
James K. Happ, the last National Century Financial Enterprises executive charged in the multibillion-dollar fraud that damaged pensions across the country, has been found not guilty on all charges by a jury in U.S. District Court in Columbus.
The verdicts came shortly before 2:30 p.m. after about 12 hours of deliberation.
Happ, 48, had been charged with conspiracy, money-laundering conspiracy and three counts of wire fraud in connection with advances he authorized while he was in charge of purchasing National Century's accounts receivable.
He was a vice president of the Dublin-based company, which collapsed in 2002. Close to $2 billion in investors' money was lost, and 275 health-care businesses went bankrupt.
Using cash generated by the sale of bonds to investors, National Century bought accounts receivable from health-care providers and collected them for a fee. But investors were never told about money being given to providers without National Century getting the accounts receivable in return, prosecutors said.
Ten former executives were convicted or pleaded guilty on fraud charges tied to the company's collapse.
Funny, he was the one to divest the losing assets dragging HCA's stock price to its lowest in years. Shall I continue?
If I could only reach Bob Woodward!
Jury acquits last National Century exec
Wednesday, December 17, 2008 1:54 PM
By Jodi Andes
THE COLUMBUS DISPATCH
James K. Happ, the last National Century Financial Enterprises executive charged in the multibillion-dollar fraud that damaged pensions across the country, has been found not guilty on all charges by a jury in U.S. District Court in Columbus.
The verdicts came shortly before 2:30 p.m. after about 12 hours of deliberation.
Happ, 48, had been charged with conspiracy, money-laundering conspiracy and three counts of wire fraud in connection with advances he authorized while he was in charge of purchasing National Century's accounts receivable.
He was a vice president of the Dublin-based company, which collapsed in 2002. Close to $2 billion in investors' money was lost, and 275 health-care businesses went bankrupt.
Using cash generated by the sale of bonds to investors, National Century bought accounts receivable from health-care providers and collected them for a fee. But investors were never told about money being given to providers without National Century getting the accounts receivable in return, prosecutors said.
Ten former executives were convicted or pleaded guilty on fraud charges tied to the company's collapse.
Federal Prosecutors did not do their job....Really? No surprise...
Why would Federal Prosecutors open a can opf worms that is directly connected to GW Bush's ex-partner, Richard Rainwater of Columbia Homecare Group, (Dallas Ft Worth Homecare) and an exctension of HCA. The crooks in Nashville!
Just look at what they dumped into Medshares, Inc in TN financed by NCFE...
ALL THE LOSERS from the PUBLICLY TRADED companies y of HCA and IHS!!!
National Century fraud case produces 1st acquittal
Prosecutors' case fell short, juror says
Thursday, December 18, 2008 3:29 AM
By Jodi Andes
THE COLUMBUS DISPATCH
The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation.
"He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
Happ, 48, of Dublin, was tried on conspiracy, money-laundering conspiracy and three counts of wire fraud in connection with money advances that he authorized while in charge of purchasing National Century's accounts receivable.
He was the only one of 11 former National Century executives charged in the scam who walked out of the courtroom with a not-guilty verdict.
For Happ, the acquittal was vindication.
"Praise God. He answers prayers," Happ said. "I never believed I had any intent to defraud anyone."
But there was no doubt that fraud had occurred at National Century, the juror said.
The Dublin-based company bought accounts receivable from health-care providers and collected the money owed on them for a fee. Money generated from the sale of bonds to investors provided the funding.
However, investors didn't know that National Century also gave providers millions of dollars without purchasing accounts receivable to back up the loans. That's because a separate set of books hid that and the company's shrinking reserve accounts.
Investors lost $1.9 billion when National Century collapsed in 2002. It's considered to be the largest fraud case by a private company in U.S. history.
Witnesses testified that Happ was part of that deceit. But the witnesses were "tainted," the juror said.
The key witness, Sherry Gibson, had falsified National Century's books herself. Frank Magliochetti, who testified that Happ boasted he could never be prosecuted because he didn't sign anything, bragged about his own ties to organized crime.
Prosecutors should have brought in more witnesses and greater proof to show that Happ had personally been deceitful, the juror said.
Happ's attorneys admitted that he advanced money to health-care companies. But that's simply how National Century did business, his attorneys said, and auditors and banks oversaw company accounts.
They also argued that the advances had been made for eight years before Happ joined the company in 2000.
After leaving National Century, Happ went to work for Tender Loving Care, a client of National Century's that had received close to $100 million in unmerited advances.
TLC later filed for bankruptcy. But Happ, TLC's chief executive officer, oversaw the sale of company assets to repay National Century, the defense noted.
That did not make things right, Assistant U.S. Attorney Doug Squires told the jury.
"If someone takes your wallet and it later is recovered, does that mean that no crime is committed? No, it doesn't," Squires said.
After the verdict, the prosecutorial team of Squires, N. Nathan Dimock and Nicole Sprinzen declined to comment through the office spokesman, Fred Alverson.
"We appreciate the effort of all the (FBI and Internal Revenue Service) agents in preparation of the evidence," Alverson said. "And we respect the jury's decision."
The case was tried in U.S. District Court in Columbus before Judge Algenon L. Marbley.
jandes@dispatch.com
Just look at what they dumped into Medshares, Inc in TN financed by NCFE...
ALL THE LOSERS from the PUBLICLY TRADED companies y of HCA and IHS!!!
National Century fraud case produces 1st acquittal
Prosecutors' case fell short, juror says
Thursday, December 18, 2008 3:29 AM
By Jodi Andes
THE COLUMBUS DISPATCH
The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation.
"He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
Happ, 48, of Dublin, was tried on conspiracy, money-laundering conspiracy and three counts of wire fraud in connection with money advances that he authorized while in charge of purchasing National Century's accounts receivable.
He was the only one of 11 former National Century executives charged in the scam who walked out of the courtroom with a not-guilty verdict.
For Happ, the acquittal was vindication.
"Praise God. He answers prayers," Happ said. "I never believed I had any intent to defraud anyone."
But there was no doubt that fraud had occurred at National Century, the juror said.
The Dublin-based company bought accounts receivable from health-care providers and collected the money owed on them for a fee. Money generated from the sale of bonds to investors provided the funding.
However, investors didn't know that National Century also gave providers millions of dollars without purchasing accounts receivable to back up the loans. That's because a separate set of books hid that and the company's shrinking reserve accounts.
Investors lost $1.9 billion when National Century collapsed in 2002. It's considered to be the largest fraud case by a private company in U.S. history.
Witnesses testified that Happ was part of that deceit. But the witnesses were "tainted," the juror said.
The key witness, Sherry Gibson, had falsified National Century's books herself. Frank Magliochetti, who testified that Happ boasted he could never be prosecuted because he didn't sign anything, bragged about his own ties to organized crime.
Prosecutors should have brought in more witnesses and greater proof to show that Happ had personally been deceitful, the juror said.
Happ's attorneys admitted that he advanced money to health-care companies. But that's simply how National Century did business, his attorneys said, and auditors and banks oversaw company accounts.
They also argued that the advances had been made for eight years before Happ joined the company in 2000.
After leaving National Century, Happ went to work for Tender Loving Care, a client of National Century's that had received close to $100 million in unmerited advances.
TLC later filed for bankruptcy. But Happ, TLC's chief executive officer, oversaw the sale of company assets to repay National Century, the defense noted.
That did not make things right, Assistant U.S. Attorney Doug Squires told the jury.
"If someone takes your wallet and it later is recovered, does that mean that no crime is committed? No, it doesn't," Squires said.
After the verdict, the prosecutorial team of Squires, N. Nathan Dimock and Nicole Sprinzen declined to comment through the office spokesman, Fred Alverson.
"We appreciate the effort of all the (FBI and Internal Revenue Service) agents in preparation of the evidence," Alverson said. "And we respect the jury's decision."
The case was tried in U.S. District Court in Columbus before Judge Algenon L. Marbley.
jandes@dispatch.com
Bush, Rainwater, Moore, Poulsen, Happ, Fraud, Healthcare Fraud, Bankruptcy Fraud, Financial Fraud
Columbia Homecare Group was also involved with the largest Bankruptcy in Western Tennessee . Medshares, Inc. which was also connected to the largest ‘private’ fraud case in Columbus Ohio, National Cantury Finanacial Enterprises, Inc. (NCFE).
Funny, the only executive to be acquitted was the ex-CFO of Columbia Homecare Group out of Dallas Ft Worth, Mr. Richard Rainwater’s losing assets of HCA/TN.
James K Happ, the ex-CFO, dumped all the homecares into Medshares, financed by, you guessed it, NCFE!!
Guess it pays to be the ex-partner of the worst President in our modern history.
Rainwater & Bush----go TEXAS RANGERS!!!!
I woncder if BUSH & RAINWATER will have dinner at the White House or maybe at the "WESTERN" White HOUSE. Oh and don't forget, Rainwater's wife, the Queen of Bankruptcy,Darla Moore. Remember, she was the inventor of 'DIP FINANCE' while at CHASE BANK for CORPORATE BANKRUPTCY.
Funny, the only executive to be acquitted was the ex-CFO of Columbia Homecare Group out of Dallas Ft Worth, Mr. Richard Rainwater’s losing assets of HCA/TN.
James K Happ, the ex-CFO, dumped all the homecares into Medshares, financed by, you guessed it, NCFE!!
Guess it pays to be the ex-partner of the worst President in our modern history.
Rainwater & Bush----go TEXAS RANGERS!!!!
I woncder if BUSH & RAINWATER will have dinner at the White House or maybe at the "WESTERN" White HOUSE. Oh and don't forget, Rainwater's wife, the Queen of Bankruptcy,Darla Moore. Remember, she was the inventor of 'DIP FINANCE' while at CHASE BANK for CORPORATE BANKRUPTCY.
Columbia Hospital Corporation & National Century Finanacial Enterprises & James K Happ
The one and only executive from NCFE who by the way came from Columbia to NCFE before the FBI raided their offices, was acquitted.
Funny, he was the last person to go on trial.
How convenient!
Undercover: How I Went from Company Man to FBI Spy -- and Exposed the Worst Healthcare Fraud in US History (Hardcover)
Review
“…[an] exciting story of an ordinary man who finds himself in extraordinary circumstances. You could say it’s a rags-to-riches morality tale, with good emerging victorious (up to a point) over bad.” Milwaukee Journal Sentinel
When John Schilling, an unassuming mid-level accountant, went to work for the Columbia Hospital Corporation, he never expected to become the catalyst for the series of “whistleblower” cases that ripped through the healthcare industry in the late 1990s. But when he unwittingly discovered that the company was siphoning billions of dollars away from Medicare and stealing from American taxpayers, he was faced with a choice: Speak up for what he believed to be right, or remain silent. Undercover tells the story of Schilling’s harrowing journey from ordinary citizen to federal informant. The book recounts how Schilling allied himself with the FBI and the Justice Department and–unable to confide in friends or family–journeyed into an undercover world in which he carried a wire and mapped out offices for secret government raids. Suspenseful and provocative, Undercover chronicles Schilling’s nine-year ordeal that eventually led to the resignation of high-level executives and forced Columbia to return $1.7 billion dollars to the federal government. A compelling account of one man’s decision to risk everything for the greater good, this book reveals the personal side of a thankless role that resulted, ultimately, in justice.
See all Editorial Reviews
order Undercover: How I Went from Company Man to FBI Spy — and Exposed the Worst Healthcare Fraud in US History: John W. Schilling form Amazon.
Funny, he was the last person to go on trial.
How convenient!
Undercover: How I Went from Company Man to FBI Spy -- and Exposed the Worst Healthcare Fraud in US History (Hardcover)
Review
“…[an] exciting story of an ordinary man who finds himself in extraordinary circumstances. You could say it’s a rags-to-riches morality tale, with good emerging victorious (up to a point) over bad.” Milwaukee Journal Sentinel
When John Schilling, an unassuming mid-level accountant, went to work for the Columbia Hospital Corporation, he never expected to become the catalyst for the series of “whistleblower” cases that ripped through the healthcare industry in the late 1990s. But when he unwittingly discovered that the company was siphoning billions of dollars away from Medicare and stealing from American taxpayers, he was faced with a choice: Speak up for what he believed to be right, or remain silent. Undercover tells the story of Schilling’s harrowing journey from ordinary citizen to federal informant. The book recounts how Schilling allied himself with the FBI and the Justice Department and–unable to confide in friends or family–journeyed into an undercover world in which he carried a wire and mapped out offices for secret government raids. Suspenseful and provocative, Undercover chronicles Schilling’s nine-year ordeal that eventually led to the resignation of high-level executives and forced Columbia to return $1.7 billion dollars to the federal government. A compelling account of one man’s decision to risk everything for the greater good, this book reveals the personal side of a thankless role that resulted, ultimately, in justice.
See all Editorial Reviews
order Undercover: How I Went from Company Man to FBI Spy — and Exposed the Worst Healthcare Fraud in US History: John W. Schilling form Amazon.
By Dennis Jay
Jan 2, 2009, 4:18 PM EST
Let’s make 2009 the year we finally turn the corner on insurance fraud and truly make a difference in curbing this crime — and in the process, helping to keep insurance affordable and making the insurance system fairer for everyone.
To that end, here are a few New Year’s resolutions for the fraud-fighting community:
Insurers: Resolve to adopt a zero-tolerance attitude towards fraud. Provide adequate resources to your SIUs and recognize that a down economy is exactly the wrong time to cut back on anti-fraud activities;
Fraud bureaus: Resolve to become more efficient and adopt more strategies to deter fraud, including publicizing arrests and convictions;
Regulators: Resolve to seek greater uniformity in anti-fraud regulations from state to state, and ensure all insurers comply with anti-fraud requirements;
Prosecutors: Resolve to find creative ways to accept more fraud cases, especially the difficult ones.
State legislators: Resolve to give fraud-fighters more tools by enacting needed fraud legislation, and that goes double for lawmakers in Oregon, Virginia and Alabama, the last states that lack even a basic insurance fraud statutue;
President-elect Obama and Congress: Resolve to include strong anti-fraud provisions in any new healthcare initiatives;
Consumers: Resolve to resist the temptation to inflate insurance claims; encourage your friends, family and co-workers to stay honest.
And lastly, the coalition: Resolve to strengthen partnerships with all constituents groups, including other anti-fraud organizations, and to have a measurable impact on reducing insurance fraud.
May you stick to all of your resolutions and have a successful 2009!
Jan 2, 2009, 4:18 PM EST
Let’s make 2009 the year we finally turn the corner on insurance fraud and truly make a difference in curbing this crime — and in the process, helping to keep insurance affordable and making the insurance system fairer for everyone.
To that end, here are a few New Year’s resolutions for the fraud-fighting community:
Insurers: Resolve to adopt a zero-tolerance attitude towards fraud. Provide adequate resources to your SIUs and recognize that a down economy is exactly the wrong time to cut back on anti-fraud activities;
Fraud bureaus: Resolve to become more efficient and adopt more strategies to deter fraud, including publicizing arrests and convictions;
Regulators: Resolve to seek greater uniformity in anti-fraud regulations from state to state, and ensure all insurers comply with anti-fraud requirements;
Prosecutors: Resolve to find creative ways to accept more fraud cases, especially the difficult ones.
State legislators: Resolve to give fraud-fighters more tools by enacting needed fraud legislation, and that goes double for lawmakers in Oregon, Virginia and Alabama, the last states that lack even a basic insurance fraud statutue;
President-elect Obama and Congress: Resolve to include strong anti-fraud provisions in any new healthcare initiatives;
Consumers: Resolve to resist the temptation to inflate insurance claims; encourage your friends, family and co-workers to stay honest.
And lastly, the coalition: Resolve to strengthen partnerships with all constituents groups, including other anti-fraud organizations, and to have a measurable impact on reducing insurance fraud.
May you stick to all of your resolutions and have a successful 2009!
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