HEALTHCARE, FINANCIAL INSTITUTES, FDIC BANKS, AUTO INDUSTRY & FRAUD

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!