Leo J. Wise, Staff Director & Chief Counsel

OFFICE OF CONGRESSIONAL ETHICS
UNITED STATES HOUSE OF REPRESENTATIVES
WASHINGTON, D. C. 20515
FOR IMMEDIATE RELEASE Contact: Leo Wise
April 15, 2009 oce@mail.house.gov

PRESS ADVISORY:
OFFICE OF CONGRESSIONAL ETHICS RELEASES FIRST QUARTER REPORT
The Office of Congressional Ethics, established by the House of Representatives, is an independent, non-partisan entity charged with receiving and reviewing allegations of misconduct concerning House Members and staff and, when appropriate, referring matters to the Committee on Standards of Official Conduct (commonly referred to as the Ethics Committee).
Consistent with the desire of the House for more transparency in these matters, the OCE released today a report of its activities for the first quarter, January to March, of 2009.

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Leo J. Wise, Staff Director & Chief Counsel
1017 Longworth House Office Building
(202) 225-9739
(202) 226-0997 fax

David Skaggs, Chair Porter Goss, Co-Chair
Yvonne Burke Jay Eagen
Karan English William Frenzel
Allison Hayward Abner Mikva

In 1997, as part of Richard Scott's severance package from Columbia he was paid $5.13 million and given a five year consulting contract at $950,000 per year

1997 + 5 = 2002

Remember- 1997 Columbia just decided to sell its home health-care business.

In 2002 FBI raided the offices of National Century Financial Enterprises in Dublin, Ohio

“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.

Guess where those home health care units were found?

Yes- "...largest corporate fraud investigations involving a privately held company headquartered in small town America,”

Why the need for ‘healthcare financial service’ i.e. (NCFE) National Century Financial Enterprises?

Home health - which was struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.


On Sept 8, 1998 Standard and Poors downgraded the bonds of Charter/HCA to negative bases on
poor earnings. Looks like Rainwater and his Crescent Cos' have finally stumbled. One source within the company said it would be a long while before any new high-ticket acquisitions would take place. A previous deal with Prudential is in danger of being jettisoned.


Part Four- Richard (aka Rick) Scott/Conservatives for Patients' Rights

A 2009 article from - The Wall Street Journal reported that Richard Scott, "the former chief executive of HCA Inc," had formed the non-profit organization Conservatives for Patients' Rights as part of a "lobbying campaign to derail or modify" President Obama's health care proposals, but failed to note that Scott resigned from HCA in 1997 amid a federal investigation into the company's Medicare billing, physician recruiting, and home-care practices. HCA eventually pleaded guilty to fraud charges and paid approximately $1.7 billion in fines and penalties.


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.

Enron and National Century Financial Enterprises, one of the largest corporate fraud investigations involving a privately held company headquartered in small town America.

On 3-9-2006 10-K SEC Filing, filed by J P MORGAN CHASE & CO: 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

Friday, March 14, 2008 3:16 AM
Guilty, guilty, guilty, guilty...

5 National Century executives face prison time for fraud

BY JODI ANDES AND KEVIN MAYHOOD
THE COLUMBUS DISPATCH

It seemed the jury had little doubt about the guilt of the former National Century executives accused of the nation's biggest private fraud.

After a day and a half of deliberation, the jury of eight women and four men came back with a determination of "guilty" for every one of the 40 charges against two of the Dublin company's founders and three of its former executives.

March 26, 2008; By Jodi Andes; THE COLUMBUS DISPATCH

Nine other executives have been convicted or pleaded guilty in National Century's collapse.

Only Poulsen and executive James Happ still await trial.

FOR IMMEDIATE RELEASE--Friday, October 31, 2008--WWW.USDOJ.GOV

Former National Century Financial Enterprises CEO Convicted of Conspiracy, Fraud and Money Laundering

Fraud Cost Investors More Than $2 Billion

November 2008 - Only executive James Happ still await trial.

December 18, 2008 - The ONE AND ONLY acquittal; James K Happ!

By Jodi Andes THE COLUMBUS DISPATCH

Prosecutors' case fell short; juror says National Century fraud case produces 1st acquittal

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

December 18, 2008 - the ONE AND ONLY acquittal- James K Happ

Who is James K Happ?

SEC Form September 9, 2003 Annual Meeting of Stockholders, Med Diversified Inc.:

Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency.

Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc.,

CFO of Dallas-based Columbia Homecare Group, Inc.?

James K Happ … 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

Richard Rainwater and Darla Moore in 1997, as part of Richard Scott's severance package from Columbia was paid $5.13 million and given a five year consulting contract at $950,000 per year