New Commercial for Richard Scott
Conservatives for Patients' Rights
Remember who Richard is:
The Epitome of Fraud- Waste-Abuse:
2009 - WSJ reported that Richard Scott, "the former CEO of HCA Inc," had formed the non-profit organization-
Conservatives for Patients' Rights
as part of a "lobbying campaign to derail or modify" health care reform.
non-profit? What a joke.
Not this thief: THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
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.
He features a doctor from England. I wonder why?
HCA International
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Showing posts with label Columbia Homecare Group. Show all posts
Showing posts with label Columbia Homecare Group. Show all posts
Tuesday, April 28, 2009
Tuesday, March 31, 2009
Fraud-Fraud-Fraud Not a word about prosecutor not doing his job with the ex-CFO of Columbia Homecare Group ....
Where was James K Happ?
Notice not one word- He wasa the last person to stand trial and the only acquittal.
Jurors said prosecutor did nto do his job.
NEWS RELEASE
GREGORY G. LOCKHART
UNITED STATES ATTORNEY
SOUTHERN DISTRICT OF OHIO
FOR IMMEDIATE RELEASE
TUESDAY, MARCH 27, 2009
http://www.usdoj.gov/usao/ohs
CONTACT: Fred Alverson
614 469-571
FORMER NATIONAL CENTURY FINANCIAL ENTERPRISES CEO SENTENCED TO 30 YEARS IN PRISON, CO-OWNER SENTENCED TO 25 YEARS IN PRISON FOR CONSPIRACY, FRAUD AND MONEY LAUNDERING
Defendants Ordered to Pay Restitution of $2.3 Billion and Forfeit $1.7 Billion
WASHINGTON—Two former National Century Financial Enterprises (NCFE) executives were sentenced today for their roles in a scheme to deceive investors about the financial health of NCFE, Acting Assistant Attorney General Rita M. Glavin and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced. NCFE, formerly based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
Lance K. Poulsen, 65, former president, owner and chief executive officer of NCFE was sentenced to 30 years in prison and three years of supervised release following the prison term. A federal jury convicted Poulsen on Oct. 31, 2008, of conspiracy, securities fraud, wire fraud and money laundering. Poulsen was also found guilty by a federal jury on March 26, 2008, of conspiring to interfere with a witness who was preparing to testify in the fraud trial against Poulsen and other NCFE executives. He is currently serving a 10-year prison sentence for that conviction. The court ordered Poulsen’s 30-year sentence to be served concurrently with the 10-year sentence for witness tampering.
Rebecca S. Parrett, 60, former vice chairman, secretary, treasurer, director and owner of NCFE was sentenced to 25 years in prison and three years of supervised release following the prison term. A federal jury convicted Parrett on March 13, 2008, of conspiracy, securities fraud, wire fraud and money laundering. Parrett fled after the conviction and remains at large.
U.S. District Court Judge Algenon Marbley also ordered Poulsen and Parrett to forfeit $1.7 billion of property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion, jointly and severally with other defendants.
“Corporate executives who violate the law, as well as investors’ trust, can and will be held accountable for their illegal actions,” said Acting Assistant Attorney General Rita M. Glavin. “The Department of Justice will continue to seek appropriate punishment, including jail time, for individuals who participate in financial frauds to the detriment of the investing public.”
“Evidence showed that Poulsen knew the business model NCFE presented to the investing public differed drastically from the way NCFE did business within its own walls,” U.S. Attorney Lockhart said. “Their actions were designed to hide a financial house of cards from investors, eventually costing investors $2 billion.”
“When corporate officers elect to betray the public’s trust for personal gain, the very core of how and why our corporate system operates is immediately and negatively impacted,” Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division Jose A. Gonzalez said. “As signified by today’s NCFE sentences, the IRS gives priority to investigations involving the alleged breach of the public trust by corporate officials at any level.”
FBI Cincinnati Special Agent in Charge Keith L. Bennett noted the significant sentences imposed on both Poulsen and Parrett. “This should serve as a warning to those who might be tempted to manipulate the complexities of our financial systems to defraud others. The FBI stands ready to root out those who would do so, bring them to the judicial system and ensure they lose both their ill-gotten wealth and their freedom.”
Witnesses testified at both trials that Poulsen, Parrett and other NCFE executives engaged in a scheme from 1995 until the collapse of the company to deceive investors and rating agencies about the financial health of NCFE and how investors’ money would be used. NCFE bought accounts receivable from healthcare providers using money NCFE obtained through the sale of asset-backed notes to institutional investors, including pension funds, insurance companies and churches.
Evidence at both trials showed that NCFE misused investors’ money and made unsecured loans to health care providers, including those owned in whole or in part by Poulsen, Parrett and another owner of NCFE, Donald H. Ayers. Former employees testified that Poulsen, Parrett and other NCFE executives covered up the fraud by lying to investors and rating agencies. The government presented evidence that Poulsen and others created investor reports containing fabricated data and moved money back and forth between programs in order to make it appear that NCFE was in compliance with its own governing documents. Evidence showed that Poulsen and Parrett knew the business model NCFE presented to the investing public differed significantly from the way NCFE actually conducted business.
Four other NCFE executives have been convicted in connection with the fraud. Donald H. Ayers, an NCFE vice chairman, chief operating officer, director and an owner of the company, was found guilty on charges of conspiracy, securities fraud and money laundering and was sentenced to 15 years in prison. Randolph H. Speer, NCFE’s chief financial officer, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering and was sentenced to 12 years in prison. Roger S. Faulkenberry, vice president for client development, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering and was sentenced to 10 years in prison. James E. Dierker, chief credit officer, was found guilty on charges of conspiracy and money laundering and was sentenced to five years in prison. In addition, four other former NCFE executives have pleaded guilty in connection with this fraud.
The cases were prosecuted by the U.S. Attorney’s Office for the Southern District of Ohio and the Criminal Division’s Fraud Section and investigated by FBI Special Agents Matt Daly, Ingrid Schmidt and Tad Morris; IRS Special Agents Greg Ruwe and Mark Bailey, U.S. Postal Inspector Dave Mooney; and Immigration and Customs Enforcement Agent Celeste Koszut. Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Assistant Chief Kathleen McGovern and Senior Trial Attorney Wes R. Porter of the Criminal Division’s Fraud Section prosecuted Parrett, Ayers, Speer, Faulkenberry and Dierker. Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Assistant Chief Kathleen McGovern, Trial Attorneys N. Nathan Dimock, and former Trial Attorney Leo Wise of the Criminal Division’s Fraud Section prosecuted Poulsen. Fraud Section Paralegal Specialists Crystal Curry and Sarah Marberg assisted with these cases.
Notice not one word- He wasa the last person to stand trial and the only acquittal.
Jurors said prosecutor did nto do his job.
NEWS RELEASE
GREGORY G. LOCKHART
UNITED STATES ATTORNEY
SOUTHERN DISTRICT OF OHIO
FOR IMMEDIATE RELEASE
TUESDAY, MARCH 27, 2009
http://www.usdoj.gov/usao/ohs
CONTACT: Fred Alverson
614 469-571
FORMER NATIONAL CENTURY FINANCIAL ENTERPRISES CEO SENTENCED TO 30 YEARS IN PRISON, CO-OWNER SENTENCED TO 25 YEARS IN PRISON FOR CONSPIRACY, FRAUD AND MONEY LAUNDERING
Defendants Ordered to Pay Restitution of $2.3 Billion and Forfeit $1.7 Billion
WASHINGTON—Two former National Century Financial Enterprises (NCFE) executives were sentenced today for their roles in a scheme to deceive investors about the financial health of NCFE, Acting Assistant Attorney General Rita M. Glavin and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced. NCFE, formerly based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
Lance K. Poulsen, 65, former president, owner and chief executive officer of NCFE was sentenced to 30 years in prison and three years of supervised release following the prison term. A federal jury convicted Poulsen on Oct. 31, 2008, of conspiracy, securities fraud, wire fraud and money laundering. Poulsen was also found guilty by a federal jury on March 26, 2008, of conspiring to interfere with a witness who was preparing to testify in the fraud trial against Poulsen and other NCFE executives. He is currently serving a 10-year prison sentence for that conviction. The court ordered Poulsen’s 30-year sentence to be served concurrently with the 10-year sentence for witness tampering.
Rebecca S. Parrett, 60, former vice chairman, secretary, treasurer, director and owner of NCFE was sentenced to 25 years in prison and three years of supervised release following the prison term. A federal jury convicted Parrett on March 13, 2008, of conspiracy, securities fraud, wire fraud and money laundering. Parrett fled after the conviction and remains at large.
U.S. District Court Judge Algenon Marbley also ordered Poulsen and Parrett to forfeit $1.7 billion of property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion, jointly and severally with other defendants.
“Corporate executives who violate the law, as well as investors’ trust, can and will be held accountable for their illegal actions,” said Acting Assistant Attorney General Rita M. Glavin. “The Department of Justice will continue to seek appropriate punishment, including jail time, for individuals who participate in financial frauds to the detriment of the investing public.”
“Evidence showed that Poulsen knew the business model NCFE presented to the investing public differed drastically from the way NCFE did business within its own walls,” U.S. Attorney Lockhart said. “Their actions were designed to hide a financial house of cards from investors, eventually costing investors $2 billion.”
“When corporate officers elect to betray the public’s trust for personal gain, the very core of how and why our corporate system operates is immediately and negatively impacted,” Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division Jose A. Gonzalez said. “As signified by today’s NCFE sentences, the IRS gives priority to investigations involving the alleged breach of the public trust by corporate officials at any level.”
FBI Cincinnati Special Agent in Charge Keith L. Bennett noted the significant sentences imposed on both Poulsen and Parrett. “This should serve as a warning to those who might be tempted to manipulate the complexities of our financial systems to defraud others. The FBI stands ready to root out those who would do so, bring them to the judicial system and ensure they lose both their ill-gotten wealth and their freedom.”
Witnesses testified at both trials that Poulsen, Parrett and other NCFE executives engaged in a scheme from 1995 until the collapse of the company to deceive investors and rating agencies about the financial health of NCFE and how investors’ money would be used. NCFE bought accounts receivable from healthcare providers using money NCFE obtained through the sale of asset-backed notes to institutional investors, including pension funds, insurance companies and churches.
Evidence at both trials showed that NCFE misused investors’ money and made unsecured loans to health care providers, including those owned in whole or in part by Poulsen, Parrett and another owner of NCFE, Donald H. Ayers. Former employees testified that Poulsen, Parrett and other NCFE executives covered up the fraud by lying to investors and rating agencies. The government presented evidence that Poulsen and others created investor reports containing fabricated data and moved money back and forth between programs in order to make it appear that NCFE was in compliance with its own governing documents. Evidence showed that Poulsen and Parrett knew the business model NCFE presented to the investing public differed significantly from the way NCFE actually conducted business.
Four other NCFE executives have been convicted in connection with the fraud. Donald H. Ayers, an NCFE vice chairman, chief operating officer, director and an owner of the company, was found guilty on charges of conspiracy, securities fraud and money laundering and was sentenced to 15 years in prison. Randolph H. Speer, NCFE’s chief financial officer, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering and was sentenced to 12 years in prison. Roger S. Faulkenberry, vice president for client development, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering and was sentenced to 10 years in prison. James E. Dierker, chief credit officer, was found guilty on charges of conspiracy and money laundering and was sentenced to five years in prison. In addition, four other former NCFE executives have pleaded guilty in connection with this fraud.
The cases were prosecuted by the U.S. Attorney’s Office for the Southern District of Ohio and the Criminal Division’s Fraud Section and investigated by FBI Special Agents Matt Daly, Ingrid Schmidt and Tad Morris; IRS Special Agents Greg Ruwe and Mark Bailey, U.S. Postal Inspector Dave Mooney; and Immigration and Customs Enforcement Agent Celeste Koszut. Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Assistant Chief Kathleen McGovern and Senior Trial Attorney Wes R. Porter of the Criminal Division’s Fraud Section prosecuted Parrett, Ayers, Speer, Faulkenberry and Dierker. Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Assistant Chief Kathleen McGovern, Trial Attorneys N. Nathan Dimock, and former Trial Attorney Leo Wise of the Criminal Division’s Fraud Section prosecuted Poulsen. Fraud Section Paralegal Specialists Crystal Curry and Sarah Marberg assisted with these cases.
Monday, March 30, 2009
Executive Gets 30 Years in $2.9 Billion Fraud - One acquittal, the ex-CFO of Columbia Homecare Group
Executive Gets 30 Years in $2.9 Billion Fraud
By ZACHERY KOUWE
Published: March 27, 2009
NYT
Nearly seven years after National Century Financial Enterprises collapsed in a $2.9 billion fraud, its founder, Lance K. Poulsen, was sentenced to 30 years in prison on Friday in one of the harshest white-collar punishments in history.
Mr. Poulsen was convicted in October of leading a vast fraud as chief executive of National Century, a company based in Dublin, Ohio, that provided financing for hundreds of clinics, hospitals and other health care providers.
The company’s fall in 2002 contributed to the bankruptcies of 275 health care facilities and cost Credit Suisse and the Pacific Investment Management Company, the nation’s biggest bond fund investor, more than $540 million.
“Mr. Poulsen is an architect of a fraud of such magnitude that it would make sophisticated financial analysts shudder,” Judge Algenon Marbley said in Federal District Court in Ohio. “It is considered the largest fraud at a private company in the United States. Mr. Poulsen perpetrated this fraud over a seven-year period and went to enormous lengths to conceal it.”
Mr. Poulsen, 65, is already serving a 10-year sentence for trying to bribe the main witness against him in the case. His sentence will run concurrently with the sentence for witness tampering.
Mr. Marbley’s decision signals that federal judges could begin imposing harsher sentences for white-collar crime in response to the rise in public outrage over corporate fraud after the discovery of Bernard L. Madoff’s multibillion-dollar Ponzi scheme. The sentence for Mr. Poulsen exceeds the 25 years given to Bernard J. Ebbers, the former chief executive of WorldCom, and the 24 years given to Jeffrey K. Skilling, the former Enron chief.
Mr. Marbley also handed out a 25-year sentence to Rebecca Parrett, a former National Century executive who became a fugitive after she was convicted last year.
Mr. Poulsen and Ms. Parrett were also ordered to pay $2.38 billion in restitution.
Before it filed for bankruptcy in 2002, National Century provided loans to a variety of health care companies that were backed by payments expected to be made by insurance companies and government programs like Medicaid and Medicare. Mr. Poulsen then packaged the loans into bonds and sold them to institutional investors and Wall Street firms.
In many cases, the company deliberately lent more to the facilities, many of which were owned by Mr. Poulsen, than their receivables were worth. The scheme finally came apart in the spring of 2002 when investors began to question the value of the loans, which forced National Century into a liquidity crisis.
By ZACHERY KOUWE
Published: March 27, 2009
NYT
Nearly seven years after National Century Financial Enterprises collapsed in a $2.9 billion fraud, its founder, Lance K. Poulsen, was sentenced to 30 years in prison on Friday in one of the harshest white-collar punishments in history.
Mr. Poulsen was convicted in October of leading a vast fraud as chief executive of National Century, a company based in Dublin, Ohio, that provided financing for hundreds of clinics, hospitals and other health care providers.
The company’s fall in 2002 contributed to the bankruptcies of 275 health care facilities and cost Credit Suisse and the Pacific Investment Management Company, the nation’s biggest bond fund investor, more than $540 million.
“Mr. Poulsen is an architect of a fraud of such magnitude that it would make sophisticated financial analysts shudder,” Judge Algenon Marbley said in Federal District Court in Ohio. “It is considered the largest fraud at a private company in the United States. Mr. Poulsen perpetrated this fraud over a seven-year period and went to enormous lengths to conceal it.”
Mr. Poulsen, 65, is already serving a 10-year sentence for trying to bribe the main witness against him in the case. His sentence will run concurrently with the sentence for witness tampering.
Mr. Marbley’s decision signals that federal judges could begin imposing harsher sentences for white-collar crime in response to the rise in public outrage over corporate fraud after the discovery of Bernard L. Madoff’s multibillion-dollar Ponzi scheme. The sentence for Mr. Poulsen exceeds the 25 years given to Bernard J. Ebbers, the former chief executive of WorldCom, and the 24 years given to Jeffrey K. Skilling, the former Enron chief.
Mr. Marbley also handed out a 25-year sentence to Rebecca Parrett, a former National Century executive who became a fugitive after she was convicted last year.
Mr. Poulsen and Ms. Parrett were also ordered to pay $2.38 billion in restitution.
Before it filed for bankruptcy in 2002, National Century provided loans to a variety of health care companies that were backed by payments expected to be made by insurance companies and government programs like Medicaid and Medicare. Mr. Poulsen then packaged the loans into bonds and sold them to institutional investors and Wall Street firms.
In many cases, the company deliberately lent more to the facilities, many of which were owned by Mr. Poulsen, than their receivables were worth. The scheme finally came apart in the spring of 2002 when investors began to question the value of the loans, which forced National Century into a liquidity crisis.
Friday, March 13, 2009
Net Worth:$1.7 bil
Fortune:self made
Source:HCA Healthcare
Age:70
Country Of Citizenship:United States
Residence:Nashville, Tennessee
Industry:Health Care
Education:Vanderbilt University, Bachelor of Arts / Science, Washington University, Medical Doctor
Marital Status:married, 3 children
Former Air Force flight surgeon took HCA, nation's largest hospital operator, private with Bain Capital, KKR and Merrill Lynch in 2006. At the time the $33 billion leveraged buyout was the largest in history; eclipsed by $45 billion purchase of power giant TXU four months later. "Being private in these times is a blessing. The timing couldn't have been better." Founded Hospital Corp. of America with father and Jack Massey 1968; took public following year. Led management buyout 1989; took public again 3 years later. Merged with Richard Rainwater's 1994, became chief exec again 3 years later. Nashville native left board in January, now focused on philanthropy through family foundation.
Are you aware of the largest private financial fraud in our country's history that ended December 2008? I will give you a hint: It was not 'low income housing' mortgages, it was publicly traded HEALTHCARE Companies including Columbia dumping their losing asset, home healthcare into a private company.
The one and only executive acquitted in this case out of more than 12 convicted was James K Happ; jurors said prosecutor did not do his job! Guess where James K Happ came from? Columbia Homecare Group, he was the CFO!
Fortune:self made
Source:HCA Healthcare
Age:70
Country Of Citizenship:United States
Residence:Nashville, Tennessee
Industry:Health Care
Education:Vanderbilt University, Bachelor of Arts / Science, Washington University, Medical Doctor
Marital Status:married, 3 children
Former Air Force flight surgeon took HCA, nation's largest hospital operator, private with Bain Capital, KKR and Merrill Lynch in 2006. At the time the $33 billion leveraged buyout was the largest in history; eclipsed by $45 billion purchase of power giant TXU four months later. "Being private in these times is a blessing. The timing couldn't have been better." Founded Hospital Corp. of America with father and Jack Massey 1968; took public following year. Led management buyout 1989; took public again 3 years later. Merged with Richard Rainwater's 1994, became chief exec again 3 years later. Nashville native left board in January, now focused on philanthropy through family foundation.
Are you aware of the largest private financial fraud in our country's history that ended December 2008? I will give you a hint: It was not 'low income housing' mortgages, it was publicly traded HEALTHCARE Companies including Columbia dumping their losing asset, home healthcare into a private company.
The one and only executive acquitted in this case out of more than 12 convicted was James K Happ; jurors said prosecutor did not do his job! Guess where James K Happ came from? Columbia Homecare Group, he was the CFO!
Friday, March 6, 2009
wrath of Richard Scott’s fraud just ended in December 2008
Why does this matter? Because the wrath of Richard Scott’s fraud just ended in December 2008 in the largest private financial fraud case in our country's history in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio, headquarters.
Guess where Columbia and many of the other publicly traded healthcare companies DUMPED their losing asset, Home healthcare? National Century Financial Enterprises
National Century Financial Enterprises:
“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.
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
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.
Only Poulsen and executive James Happ still await trial?
December 9, 2008. James K. Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud; the 11th National Century executive to be tried or admit guilt. , Also today, a former friend of Happ's testified that, while working at National Century, Happ boasted that he never could be charged with any fraud because he didn't sign anything.
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 who wouldn't give his name. "But if he was, you gotta have the evidence."
Who is James K Happ? Where was James K Happ when Richard Scott was at Columbia in 1997?
Guess where Columbia and many of the other publicly traded healthcare companies DUMPED their losing asset, Home healthcare? National Century Financial Enterprises
National Century Financial Enterprises:
“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.
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
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.
Only Poulsen and executive James Happ still await trial?
December 9, 2008. James K. Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud; the 11th National Century executive to be tried or admit guilt. , Also today, a former friend of Happ's testified that, while working at National Century, Happ boasted that he never could be charged with any fraud because he didn't sign anything.
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 who wouldn't give his name. "But if he was, you gotta have the evidence."
Who is James K Happ? Where was James K Happ when Richard Scott was at Columbia in 1997?
Thursday, March 5, 2009
The epitome of Fraud Waste and Abuse
The epitome of Fraud Waste and AbuseSummary: 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.
Who is Richard Scott? Who is Richard Rainwater? Who is Darla Moore?
Before GW Bush was affiliated with Richard Rainwater may I remind you-Richard Scott was the ex-partner of Richard Rainwater with Columbia Homecare Group.
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
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.
Why does this matter? Because the wrath of Richard Scott’s fraud just ended in December 2008 in the largest private financial fraud case in our country's history in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio, headquarters.
Guess where Columbia and many of the other publicly traded healthcare companies DUMPED their losing asset, Home healthcare? National Century Financial Enterprises
National Century Financial Enterprises:
“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.
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
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.
Only Poulsen and executive James Happ still await trial?
December 9, 2008. James K. Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud; the 11th National Century executive to be tried or admit guilt. , Also today, a former friend of Happ's testified that, while working at National Century, Happ boasted that he never could be charged with any fraud because he didn't sign anything.
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 who wouldn't give his name. "But if he was, you gotta have the evidence."
July 26, 1997- Where was 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.,
… 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
Columbia-Richard Rainwater-GW Bush-and the PROSECUTOR did not do his JOB!
Who is Richard Scott? Who is Richard Rainwater? Who is Darla Moore?
Before GW Bush was affiliated with Richard Rainwater may I remind you-Richard Scott was the ex-partner of Richard Rainwater with Columbia Homecare Group.
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
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.
Why does this matter? Because the wrath of Richard Scott’s fraud just ended in December 2008 in the largest private financial fraud case in our country's history in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio, headquarters.
Guess where Columbia and many of the other publicly traded healthcare companies DUMPED their losing asset, Home healthcare? National Century Financial Enterprises
National Century Financial Enterprises:
“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.
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
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.
Only Poulsen and executive James Happ still await trial?
December 9, 2008. James K. Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud; the 11th National Century executive to be tried or admit guilt. , Also today, a former friend of Happ's testified that, while working at National Century, Happ boasted that he never could be charged with any fraud because he didn't sign anything.
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 who wouldn't give his name. "But if he was, you gotta have the evidence."
July 26, 1997- Where was 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.,
… 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
Columbia-Richard Rainwater-GW Bush-and the PROSECUTOR did not do his JOB!
Wednesday, March 4, 2009
Who is Richard Scott? Columbia Homecare Group, Inc. and National Century Financial Enterprises
Who is Richard Scott? Before GW Bush was affiliated with Richard Rainwater may I remind you-Richard Scott was the ex-partner of Richard Rainwater with Columbia Homecare Group.
From the July 26, 1997, Los Angeles Times article:
A controversial deal maker whose hard-nosed business tactics have reshaped the medical industry resigned Friday as scandal engulfed the vast hospital empire he had assembled over the last decade.
Richard Scott -- sometimes called "the Bill Gates of health care" -- quit as chairman of Columbia/HCA Healthcare Corp. amid a massive federal investigation into the Medicare billing, physician recruiting and home-care practices of the nation's largest for-profit health care company.
Though the federal probe focuses on other states, Columbia's aggressive expansion has included California, where the company operates 15 hospitals, 13 surgery centers and 10 home-health-care agencies, employing more than 11,000.
Why does this matter? Because the wrath of Richard Scott’s fraud just ended in December 2008 in the largest private financial fraud case in our country's history in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio, headquarters.
Just a reminder relating to the need for a financial service institute as NCFE: home health - which is struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.
“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.
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
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.December 18, 2008 - The ONE AND ONLY acquittal; 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 who wouldn't give his name. "But if he was, you gotta have the evidence."
July 26, 1997- Where was 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.,
… 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
Who purchased the majority of this divestiture in late ’98 & early ’99? Medshares, Inc. of Memphis, Tennessee. Who financed this divestiture? National Century Financial Enterprises, Inc.
From the July 26, 1997, Los Angeles Times article:
A controversial deal maker whose hard-nosed business tactics have reshaped the medical industry resigned Friday as scandal engulfed the vast hospital empire he had assembled over the last decade.
Richard Scott -- sometimes called "the Bill Gates of health care" -- quit as chairman of Columbia/HCA Healthcare Corp. amid a massive federal investigation into the Medicare billing, physician recruiting and home-care practices of the nation's largest for-profit health care company.
Though the federal probe focuses on other states, Columbia's aggressive expansion has included California, where the company operates 15 hospitals, 13 surgery centers and 10 home-health-care agencies, employing more than 11,000.
Why does this matter? Because the wrath of Richard Scott’s fraud just ended in December 2008 in the largest private financial fraud case in our country's history in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio, headquarters.
Just a reminder relating to the need for a financial service institute as NCFE: home health - which is struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.
“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.
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
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.December 18, 2008 - The ONE AND ONLY acquittal; 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 who wouldn't give his name. "But if he was, you gotta have the evidence."
July 26, 1997- Where was 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.,
… 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
Who purchased the majority of this divestiture in late ’98 & early ’99? Medshares, Inc. of Memphis, Tennessee. Who financed this divestiture? National Century Financial Enterprises, Inc.
Who is Richard Scott? What the Wall Street Journal won't reveal
Group launches health care offensive
By JONATHAN MARTIN | 3/3/09 4:18 AM EST
Firing some of the first shots in the coming showdown over health care, a conservative group led by the former owner of the Hospital Corporation of America is beginning a multimillion-dollar campaign Tuesday in opposition to government-run coverage.
Conservatives for Patients Rights is going on TV, radio and the Web in the same week President Barack Obama hosts a health care summit at the White House. The group’s leader, Richard Scott, is hoping a pro-free-market message will rally the right to join the fray on what may be the most hard-fought policy battle in the first year of the new administration.
“If we have more government involvement we’re going to have dramatically worse health care,” said Scott, the wealthy health care executive who is overseeing the effort and seeding it with $5 million of his own cash.
Scott, a major GOP donor, is pushing for four principles to any health care reform package: individual choice, competition between carriers, giving patients’ ownership over their own coverage and rewarding those who make healthy lifestyle choices.
“I want health care reform to happen but I want it the right way,” Scott said.
Toward that goal, Scott’s group is enlisting a group of veteran Republican consultants to fashion a multi-media battle, warning against the move toward more government involvement. The new group starts a three-week TV and radio campaign featuring Scott Tuesday and will plaster the Internet with ads while also launching its homepage.
The goal is to provide conservatives with a central organization to resist any move by Obama and congressional Democrats toward universal coverage. Scott said the group would spend up to $20 million on the campaign, and volunteered that he would consider reaching further into his pocket.
Scott shied away from comparing his effort to the famous industry-led “Harry and Louise” ad campaign that helped torpedo universal coverage in the Clinton administration, saying that while they may receive some aid from health care stakeholders, the “goal is to get support from individuals.”
Scott’s first salvo is being fired Tuesday largely on conservative talk radio shows and on cable news.
“Imagine waking up one day and all your medical decisions are made by a central national board,” Scott says in the radio ad. “Bureaucrats decide the treatments you receive, the drugs you take, even the doctors you see.”
He goes on to raise the prospect of “national boards” and “waiting lists” as in the nationalized systems of Great Britain and Canada. “That’s what some in Washington mean by reform,” Scott says in the spot.
Page 2
Some on the left have already formed their own group, Health Care for America Now, a coalition to push for guaranteed health care for all Americans. The group has a $35 million budget this year and is planning on spending half of that on advertising in addition to holding grass-roots events in Washington, and in the districts of key members of Congress.
“We are fully operational, organized, and mobilized to make sure Congress supports the president’s plan to win quality, affordable health care for all this year,” said Jacki Schechner, the group’s communications director
Pro-health reform activists also have begun circulating information in an effort to discredit Scott, a move that underscores the huge stakes involved in the issue.
According to a 2000 article in Forbes, Scott was forced to resign as head of what became known as Columbia/HCA after fraud charges against the massive health care company in 1997. He was replaced by Thomas Frist Jr., the original founder of HCA and brother of future Senate Majority Leader Bill Frist (R-Tenn.)
The company eventually paid over $880 million to reach a settlement with the Justice Department in 2002 on the charges.
Obama already has sought to rebut criticism that he wants a government takeover of health care by outlining eight principles of any overhaul, including letting patients stick with their own doctors and health care plans, reducing insurance premiums and guaranteeing that Americans will have a choice of health plans and physicians.
Beyond that, the Obama administration has signaled that it will push back hard on conservatives who try to label Obama’s efforts as “socialized medicine” or a massive government takeover of day-to-day health decisions. In his radio address Saturday, Obama said he’s ready for a fight against anyone who tries to block his efforts to remake health care and other programs.
But that’s exactly one of Scott’s key arguments. He said he’ll try to draw a comparison between Obama’s plan and nationalized health care systems in Great Britain and Canada, during the second round of its campaign, Scott said in an interview.
“We’ll give people information about how single-payer systems…impact the average person that needs expensive care,” he said.
To do so, Scott has enlisted former CNN reporter Gene Randall and another former producer from the cable network to travel to the two countries to gather footage.
Scott is now primarily an investor, but he does own an urgent care company with over 20 facilities across the country. He said he draws a “very insignificant amount of money from Medicare and Medicaid” and that his primary interest is not his own bottom line.
“What I care about is the free-market system,” he said.
Editor’s Note: Conservatives for Patients’ Rights purchased advertising space on POLITICO.com for this campaign.
By JONATHAN MARTIN | 3/3/09 4:18 AM EST
Firing some of the first shots in the coming showdown over health care, a conservative group led by the former owner of the Hospital Corporation of America is beginning a multimillion-dollar campaign Tuesday in opposition to government-run coverage.
Conservatives for Patients Rights is going on TV, radio and the Web in the same week President Barack Obama hosts a health care summit at the White House. The group’s leader, Richard Scott, is hoping a pro-free-market message will rally the right to join the fray on what may be the most hard-fought policy battle in the first year of the new administration.
“If we have more government involvement we’re going to have dramatically worse health care,” said Scott, the wealthy health care executive who is overseeing the effort and seeding it with $5 million of his own cash.
Scott, a major GOP donor, is pushing for four principles to any health care reform package: individual choice, competition between carriers, giving patients’ ownership over their own coverage and rewarding those who make healthy lifestyle choices.
“I want health care reform to happen but I want it the right way,” Scott said.
Toward that goal, Scott’s group is enlisting a group of veteran Republican consultants to fashion a multi-media battle, warning against the move toward more government involvement. The new group starts a three-week TV and radio campaign featuring Scott Tuesday and will plaster the Internet with ads while also launching its homepage.
The goal is to provide conservatives with a central organization to resist any move by Obama and congressional Democrats toward universal coverage. Scott said the group would spend up to $20 million on the campaign, and volunteered that he would consider reaching further into his pocket.
Scott shied away from comparing his effort to the famous industry-led “Harry and Louise” ad campaign that helped torpedo universal coverage in the Clinton administration, saying that while they may receive some aid from health care stakeholders, the “goal is to get support from individuals.”
Scott’s first salvo is being fired Tuesday largely on conservative talk radio shows and on cable news.
“Imagine waking up one day and all your medical decisions are made by a central national board,” Scott says in the radio ad. “Bureaucrats decide the treatments you receive, the drugs you take, even the doctors you see.”
He goes on to raise the prospect of “national boards” and “waiting lists” as in the nationalized systems of Great Britain and Canada. “That’s what some in Washington mean by reform,” Scott says in the spot.
Page 2
Some on the left have already formed their own group, Health Care for America Now, a coalition to push for guaranteed health care for all Americans. The group has a $35 million budget this year and is planning on spending half of that on advertising in addition to holding grass-roots events in Washington, and in the districts of key members of Congress.
“We are fully operational, organized, and mobilized to make sure Congress supports the president’s plan to win quality, affordable health care for all this year,” said Jacki Schechner, the group’s communications director
Pro-health reform activists also have begun circulating information in an effort to discredit Scott, a move that underscores the huge stakes involved in the issue.
According to a 2000 article in Forbes, Scott was forced to resign as head of what became known as Columbia/HCA after fraud charges against the massive health care company in 1997. He was replaced by Thomas Frist Jr., the original founder of HCA and brother of future Senate Majority Leader Bill Frist (R-Tenn.)
The company eventually paid over $880 million to reach a settlement with the Justice Department in 2002 on the charges.
Obama already has sought to rebut criticism that he wants a government takeover of health care by outlining eight principles of any overhaul, including letting patients stick with their own doctors and health care plans, reducing insurance premiums and guaranteeing that Americans will have a choice of health plans and physicians.
Beyond that, the Obama administration has signaled that it will push back hard on conservatives who try to label Obama’s efforts as “socialized medicine” or a massive government takeover of day-to-day health decisions. In his radio address Saturday, Obama said he’s ready for a fight against anyone who tries to block his efforts to remake health care and other programs.
But that’s exactly one of Scott’s key arguments. He said he’ll try to draw a comparison between Obama’s plan and nationalized health care systems in Great Britain and Canada, during the second round of its campaign, Scott said in an interview.
“We’ll give people information about how single-payer systems…impact the average person that needs expensive care,” he said.
To do so, Scott has enlisted former CNN reporter Gene Randall and another former producer from the cable network to travel to the two countries to gather footage.
Scott is now primarily an investor, but he does own an urgent care company with over 20 facilities across the country. He said he draws a “very insignificant amount of money from Medicare and Medicaid” and that his primary interest is not his own bottom line.
“What I care about is the free-market system,” he said.
Editor’s Note: Conservatives for Patients’ Rights purchased advertising space on POLITICO.com for this campaign.
Thursday, February 26, 2009
Federal prosecutors had not done their job
James Happ will not share his former work colleagues’ fate.
Happ, an accountant and former vice president of servicer operations for Dublin-based National Century Financial Enterprises Inc., has been found not guilty of a count each of conspiracy and money laundering conspiracy and three counts of wire fraud.
A 12-member jury at the U.S. District Court in Columbus returned the verdict Wednesday afternoon after a day-and-a-half of deliberations.
Happ was the seventh former executive from National Century to go to trial and the only one to be acquitted. Six former executives were convicted of fraud and four pleaded guilty. Happ was the eleventh and final National Century employee to face criminal charges.
Happ’s trial began Dec. 1 and ended just two weeks later after his defense attorneys declined to put any witnesses on the stand.
In opening arguments, attorney Craig Gillen told jurors that Happ never had a hand in any wrongdoing at the company.
“Jim Happ never told a lie to any investors. Period,” Gillen said.
Happ stood trial on accusations he was part of an executive-level cabal at the medical financing company that defrauded investors for years. A financier for health-care providers like doctors’ offices and hospitals, National Century’s bread and butter was buying accounts receivable from care providers at a discount, then securitizing the receivables into AAA-rated bonds for sale to investors. At its peak, the company employed more than 350 at its office campus in Dublin while recording annual revenue of more than $250 million.
The government has alleged National Century collapsed after running a sophisticated pyramid scheme that fell apart. In addition to purchasing legitimate accounts receivable, the government alleged National Century funded companies owned by its founders without getting receivables in return, effectively making risky unsecured loans with investor cash. The company charged its clients for those advances, the government has said, which inflated National Century’s revenue and generated bonuses for senior executives.
Government attorneys argued that Happ, as the firm’s chief accountant and head of servicer operations, was responsible for making sure that purchased accounts receivable were eligible. In a July 2007 indictment, the government alleged that Happ improperly advanced as much as $5.4 million to a company owned by NCFE founder Lance Poulsen.
The government also accused Happ of ordering a National Century subordinate to remove safeguards on the company’s computer system relative to a health-care provider he planned to join after leaving National Century.
******************************************************************************
Before ENRON, before the Mortgage Fraud, what about the Healthcare Finance Fraud?
JULY 10, 2007
FOR IMMEDIATE RELEASE
http://www.usdoj.gov/usao/ohsn
SUPERSEDING INDICTMENT CHARGES FORMER EXECUTIVES OF HEALTH CARE FINANCING COMPANY WITH CONSPIRACY, FRAUD, MONEY LAUNDERING
"...superseding indictment charging eight former executives of National Century Financial Enterprises (NCFE) with conspiring to defraud investors by diverting millions of dollars in investors' funds, fabricating data in investor reports, and moving money back and forth between accounts in order to conceal investor fund shortfalls. NCFE, based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States ..." before FBI raided the office in Dublin, Oh.
“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.
JPMORGAN CHASE and CITI PAID GOVERNMENT SETTLED AGREEMENTS FOR FRAUD in National Century Financial Enterprises, Inc. (NCFE), the “LARGEST ‘PRIVATE’ FINANACIAL FRAUD CASE “in our nation's history
February 3, 2008- THE COLUMBUS DISPATCH
By the numbers
All defendants, except for James K Happ, were initially indicted in May, 2006. United States District Judge Algenon L. Marbley will preside over the case which is scheduled for trial on November 5, 2007. National Century Financial Enterprises (NCFE)
Friday, February 8, 2008- Business First of Columbus - Business First
Poulsen isn't the only National Century executive scheduled for a trial apart from the five now in court. James Happ is scheduled for trial in October because "he wasn't charged in connection with the company's failure until last May."
"All defendants, except for Happ...?"
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.
Note: May 1998 James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. and used NCFE to finance his divestiture of Columbia Homecare Group’s losing assets, homecare. . , "All defendants, except for Happ...?"
Mr. Happ, 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 directed the company through the challenging reimbursement climate, … and participated in the divestiture of all of Columbia/HCA's home care operations.
1998-1999 Who financed this divestiture? NCFE- National Century Financial Enterprises.
Where did James K Happ divest the losing assets of Columbia Homecare Group, Inc? One man owned company, Medshares, Inc. in Memphis, TN. A ‘private’ company financed by a ‘private’ financial institution, NCFE.
In July 1999, Medshares, Inc. filed the LARGEST Bankruptcy case in the history of Western Tennessee's bankruptcy court held all of the Dallas-based Columbia Homecare Group, Inc.’s home care units . All entities filed with the court were financed by NCFE. In this courtroom, documents reveal the uproar from scores of lawyers crying fraud in the bankruptcy court and the BANKRUPTCY JUDGE scolded the attorneys and forbade the ‘F’ word in her court. (NO FRAUD)
February 21, 2008 - Associated Press
COLUMBUS, Ohio (AP) - A guilty executive told jurors she told investors "absolutely nothing" about National Century's practices of advancing cash to Memphis, Tenn.-based Medshares, a home-health care provider.
Thursday, December 18, 2008 - National Century fraud case produces 1st acquittal
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."
James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. prior to arriving at NCFE and the ONLY executive of NCFE ACQUITTED.
Happ, an accountant and former vice president of servicer operations for Dublin-based National Century Financial Enterprises Inc., has been found not guilty of a count each of conspiracy and money laundering conspiracy and three counts of wire fraud.
A 12-member jury at the U.S. District Court in Columbus returned the verdict Wednesday afternoon after a day-and-a-half of deliberations.
Happ was the seventh former executive from National Century to go to trial and the only one to be acquitted. Six former executives were convicted of fraud and four pleaded guilty. Happ was the eleventh and final National Century employee to face criminal charges.
Happ’s trial began Dec. 1 and ended just two weeks later after his defense attorneys declined to put any witnesses on the stand.
In opening arguments, attorney Craig Gillen told jurors that Happ never had a hand in any wrongdoing at the company.
“Jim Happ never told a lie to any investors. Period,” Gillen said.
Happ stood trial on accusations he was part of an executive-level cabal at the medical financing company that defrauded investors for years. A financier for health-care providers like doctors’ offices and hospitals, National Century’s bread and butter was buying accounts receivable from care providers at a discount, then securitizing the receivables into AAA-rated bonds for sale to investors. At its peak, the company employed more than 350 at its office campus in Dublin while recording annual revenue of more than $250 million.
The government has alleged National Century collapsed after running a sophisticated pyramid scheme that fell apart. In addition to purchasing legitimate accounts receivable, the government alleged National Century funded companies owned by its founders without getting receivables in return, effectively making risky unsecured loans with investor cash. The company charged its clients for those advances, the government has said, which inflated National Century’s revenue and generated bonuses for senior executives.
Government attorneys argued that Happ, as the firm’s chief accountant and head of servicer operations, was responsible for making sure that purchased accounts receivable were eligible. In a July 2007 indictment, the government alleged that Happ improperly advanced as much as $5.4 million to a company owned by NCFE founder Lance Poulsen.
The government also accused Happ of ordering a National Century subordinate to remove safeguards on the company’s computer system relative to a health-care provider he planned to join after leaving National Century.
******************************************************************************
Before ENRON, before the Mortgage Fraud, what about the Healthcare Finance Fraud?
JULY 10, 2007
FOR IMMEDIATE RELEASE
http://www.usdoj.gov/usao/ohsn
SUPERSEDING INDICTMENT CHARGES FORMER EXECUTIVES OF HEALTH CARE FINANCING COMPANY WITH CONSPIRACY, FRAUD, MONEY LAUNDERING
"...superseding indictment charging eight former executives of National Century Financial Enterprises (NCFE) with conspiring to defraud investors by diverting millions of dollars in investors' funds, fabricating data in investor reports, and moving money back and forth between accounts in order to conceal investor fund shortfalls. NCFE, based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States ..." before FBI raided the office in Dublin, Oh.
“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.
JPMORGAN CHASE and CITI PAID GOVERNMENT SETTLED AGREEMENTS FOR FRAUD in National Century Financial Enterprises, Inc. (NCFE), the “LARGEST ‘PRIVATE’ FINANACIAL FRAUD CASE “in our nation's history
February 3, 2008- THE COLUMBUS DISPATCH
By the numbers
All defendants, except for James K Happ, were initially indicted in May, 2006. United States District Judge Algenon L. Marbley will preside over the case which is scheduled for trial on November 5, 2007. National Century Financial Enterprises (NCFE)
Friday, February 8, 2008- Business First of Columbus - Business First
Poulsen isn't the only National Century executive scheduled for a trial apart from the five now in court. James Happ is scheduled for trial in October because "he wasn't charged in connection with the company's failure until last May."
"All defendants, except for Happ...?"
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.
Note: May 1998 James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. and used NCFE to finance his divestiture of Columbia Homecare Group’s losing assets, homecare. . , "All defendants, except for Happ...?"
Mr. Happ, 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 directed the company through the challenging reimbursement climate, … and participated in the divestiture of all of Columbia/HCA's home care operations.
1998-1999 Who financed this divestiture? NCFE- National Century Financial Enterprises.
Where did James K Happ divest the losing assets of Columbia Homecare Group, Inc? One man owned company, Medshares, Inc. in Memphis, TN. A ‘private’ company financed by a ‘private’ financial institution, NCFE.
In July 1999, Medshares, Inc. filed the LARGEST Bankruptcy case in the history of Western Tennessee's bankruptcy court held all of the Dallas-based Columbia Homecare Group, Inc.’s home care units . All entities filed with the court were financed by NCFE. In this courtroom, documents reveal the uproar from scores of lawyers crying fraud in the bankruptcy court and the BANKRUPTCY JUDGE scolded the attorneys and forbade the ‘F’ word in her court. (NO FRAUD)
February 21, 2008 - Associated Press
COLUMBUS, Ohio (AP) - A guilty executive told jurors she told investors "absolutely nothing" about National Century's practices of advancing cash to Memphis, Tenn.-based Medshares, a home-health care provider.
Thursday, December 18, 2008 - National Century fraud case produces 1st acquittal
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."
James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. prior to arriving at NCFE and the ONLY executive of NCFE ACQUITTED.
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
Thursday, December 18, 2008
WOW! What a surprise! I knew there was a reason he went last...
HAPP DUMPED ALL OF COLUMBIA HOMECARE into NCFE for finanacing a BOGUS DIVESTITURE of RICHARD RAINWATER's COMPANY....FT WORTH TEXAS!!!! COLUMBIA HOMECARE GROUP, INC.
James Happ will not share his former work colleagues’ fate.
Happ, an accountant and former vice president of servicer operations for Dublin-based National Century Financial Enterprises Inc., has been found not guilty of a count each of conspiracy and money laundering conspiracy and three counts of wire fraud.
A 12-member jury at the U.S. District Court in Columbus returned the verdict Wednesday afternoon after a day-and-a-half of deliberations.
Happ was the seventh former executive from National Century to go to trial and the only one to be acquitted. Six former executives were convicted of fraud and four pleaded guilty. Happ was the eleventh and final National Century employee to face criminal charges.
Happ’s trial began Dec. 1 and ended just two weeks later after his defense attorneys declined to put any witnesses on the stand.
In opening arguments, attorney Craig Gillen told jurors that Happ never had a hand in any wrongdoing at the company.
“Jim Happ never told a lie to any investors. Period,” Gillen said.
Happ stood trial on accusations he was part of an executive-level cabal at the medical financing company that defrauded investors for years. A financier for health-care providers like doctors’ offices and hospitals, National Century’s bread and butter was buying accounts receivable from care providers at a discount, then securitizing the receivables into AAA-rated bonds for sale to investors. At its peak, the company employed more than 350 at its office campus in Dublin while recording annual revenue of more than $250 million.
The government has alleged National Century collapsed after running a sophisticated pyramid scheme that fell apart. In addition to purchasing legitimate accounts receivable, the government alleged National Century funded companies owned by its founders without getting receivables in return, effectively making risky unsecured loans with investor cash. The company charged its clients for those advances, the government has said, which inflated National Century’s revenue and generated bonuses for senior executives.
Government attorneys argued that Happ, as the firm’s chief accountant and head of servicer operations, was responsible for making sure that purchased accounts receivable were eligible. In a July 2007 indictment, the government alleged that Happ improperly advanced as much as $5.4 million to a company owned by NCFE founder Lance Poulsen.
The government also accused Happ of ordering a National Century subordinate to remove safeguards on the company’s computer system relative to a health-care provider he planned to join after leaving National Century.
James Happ will not share his former work colleagues’ fate.
Happ, an accountant and former vice president of servicer operations for Dublin-based National Century Financial Enterprises Inc., has been found not guilty of a count each of conspiracy and money laundering conspiracy and three counts of wire fraud.
A 12-member jury at the U.S. District Court in Columbus returned the verdict Wednesday afternoon after a day-and-a-half of deliberations.
Happ was the seventh former executive from National Century to go to trial and the only one to be acquitted. Six former executives were convicted of fraud and four pleaded guilty. Happ was the eleventh and final National Century employee to face criminal charges.
Happ’s trial began Dec. 1 and ended just two weeks later after his defense attorneys declined to put any witnesses on the stand.
In opening arguments, attorney Craig Gillen told jurors that Happ never had a hand in any wrongdoing at the company.
“Jim Happ never told a lie to any investors. Period,” Gillen said.
Happ stood trial on accusations he was part of an executive-level cabal at the medical financing company that defrauded investors for years. A financier for health-care providers like doctors’ offices and hospitals, National Century’s bread and butter was buying accounts receivable from care providers at a discount, then securitizing the receivables into AAA-rated bonds for sale to investors. At its peak, the company employed more than 350 at its office campus in Dublin while recording annual revenue of more than $250 million.
The government has alleged National Century collapsed after running a sophisticated pyramid scheme that fell apart. In addition to purchasing legitimate accounts receivable, the government alleged National Century funded companies owned by its founders without getting receivables in return, effectively making risky unsecured loans with investor cash. The company charged its clients for those advances, the government has said, which inflated National Century’s revenue and generated bonuses for senior executives.
Government attorneys argued that Happ, as the firm’s chief accountant and head of servicer operations, was responsible for making sure that purchased accounts receivable were eligible. In a July 2007 indictment, the government alleged that Happ improperly advanced as much as $5.4 million to a company owned by NCFE founder Lance Poulsen.
The government also accused Happ of ordering a National Century subordinate to remove safeguards on the company’s computer system relative to a health-care provider he planned to join after leaving National Century.
Thursday, December 11, 2008
Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud.
James K. Happ, the 11th National Century executive to be tried or admit guilt
Shaky loans no secret, official says
Ex-executive: Auditors knew of loan woes at National Century
Tuesday, December 9, 2008 10:34 PM
By Jodi Andes
THE COLUMBUS DISPATCH
Outside auditors knew about unsecured loans that National Century Financial Enterprises approved for some health-care providers, a former company official testified today.
Lori McGuire said that reports about the advances typically were given to auditors at an end-of-the-year audit during her nearly 10 years with the company.
McGuire's testimony bolstered claims by former National Century executives that outsiders - including auditors and bank officials - knew the Dublin-based company was making loans that likely never would be repaid.
Her testimony came during the trial of James K. Happ, the 11th National Century executive to be tried or admit guilt in the collapse of the company that cost investors billions of dollars.
Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud.
Also today, a former friend of Happ's testified that, while working at National Century, Happ boasted that he never could be charged with any fraud because he didn't sign anything.
Much of the day's testimony came from McGuire, who was an associate vice president when the company collapsed in November 2002. On further questioning by Assistant U.S. Attorney Doug Squires, McGuire said she never actually had talked to auditors about the fraud.
Craig A. Gillen, Happ's attorney, used McGuire's statements to point out that the advances were not hidden from investors but disclosed in company documents - if outsiders only had looked.
McGuire said she became suspicious about Happ's business practices in October 2002 when he ordered eight changes be made in National Century's computer system that would benefit Med-Diversified, a health-care provider that Happ was leaving to work for.
Med-Diversified and its subsidiaries, Chartwell and Tender Loving Care, all were advanced millions of dollars in unsecured loans by National Century, prosecutors proved in previous trials of National Century executives.
However, under cross-examination, McGuire conceded that the changes Happ ordered had been talked about for up to two years.
"It's what they were supposed to get and deserved," Gillen said.
National Century bought accounts-receivable from health-care providers and collected the bills for a fee. Bonds were sold to investors so National Century could give providers cash to pay their bills upfront.
McGuire, however, said National Century was advancing millions of dollars without buying the accounts receivable, an amount she referred to as "the black hole."
Happ was in charge of overseeing which accounts receivable were bought by National Century in its final years of business.
His former friend, Frank Magliochetti, former president of Med-Diversified, testified about Happ's boasting.
Magliochetti is expected to continue on the stand Wednesday morning.
jandes@dispatch.com
Shaky loans no secret, official says
Ex-executive: Auditors knew of loan woes at National Century
Tuesday, December 9, 2008 10:34 PM
By Jodi Andes
THE COLUMBUS DISPATCH
Outside auditors knew about unsecured loans that National Century Financial Enterprises approved for some health-care providers, a former company official testified today.
Lori McGuire said that reports about the advances typically were given to auditors at an end-of-the-year audit during her nearly 10 years with the company.
McGuire's testimony bolstered claims by former National Century executives that outsiders - including auditors and bank officials - knew the Dublin-based company was making loans that likely never would be repaid.
Her testimony came during the trial of James K. Happ, the 11th National Century executive to be tried or admit guilt in the collapse of the company that cost investors billions of dollars.
Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud.
Also today, a former friend of Happ's testified that, while working at National Century, Happ boasted that he never could be charged with any fraud because he didn't sign anything.
Much of the day's testimony came from McGuire, who was an associate vice president when the company collapsed in November 2002. On further questioning by Assistant U.S. Attorney Doug Squires, McGuire said she never actually had talked to auditors about the fraud.
Craig A. Gillen, Happ's attorney, used McGuire's statements to point out that the advances were not hidden from investors but disclosed in company documents - if outsiders only had looked.
McGuire said she became suspicious about Happ's business practices in October 2002 when he ordered eight changes be made in National Century's computer system that would benefit Med-Diversified, a health-care provider that Happ was leaving to work for.
Med-Diversified and its subsidiaries, Chartwell and Tender Loving Care, all were advanced millions of dollars in unsecured loans by National Century, prosecutors proved in previous trials of National Century executives.
However, under cross-examination, McGuire conceded that the changes Happ ordered had been talked about for up to two years.
"It's what they were supposed to get and deserved," Gillen said.
National Century bought accounts-receivable from health-care providers and collected the bills for a fee. Bonds were sold to investors so National Century could give providers cash to pay their bills upfront.
McGuire, however, said National Century was advancing millions of dollars without buying the accounts receivable, an amount she referred to as "the black hole."
Happ was in charge of overseeing which accounts receivable were bought by National Century in its final years of business.
His former friend, Frank Magliochetti, former president of Med-Diversified, testified about Happ's boasting.
Magliochetti is expected to continue on the stand Wednesday morning.
jandes@dispatch.com
Friday, October 31, 2008
Once again, JPMorgan, and all the BIG BANKS get a walk!
This is questionable: "...hastened the bankruptcies of 275 hospitals, clinics, nursing homes and other health-care providers, ..."
Fraud Case Against National Century's Poulsen Goes to Ohio Jury
By Denise Trowbridge and David Voreacos
Oct. 31 (Bloomberg) -- Jurors began deliberating fraud charges against Lance Poulsen, the National Century Financial Enterprises Inc. founder accused of leading a $2.9 billion fraud before the company's bankruptcy in 2002.
Poulsen, 65, is accused of cheating investors who bought National Century bonds and believed they backed the purchase of unpaid insurance bills from medical providers that needed cash. Prosecutors said Dublin, Ohio-based National Century advanced $2.2 billion to six companies in which Poulsen owned a stake.
Federal jurors in Columbus, Ohio, began weighing fraud, conspiracy, and money-laundering charges this morning after U.S. District Judge Algenon Marbley instructed them on the law last night. Poulsen faces between 30 years and life in prison if convicted. He is already serving 10 years in prison for tampering with a witness against him.
Poulsen testified in his own defense at the trial, which began Oct. 2. He said he never intended to defraud investors, and that all of his actions were permitted by indentures, private-placement memos and other legal documents.
National Century's collapse hastened the bankruptcies of 275 hospitals, clinics, nursing homes and other health-care providers, according to prosecutors and regulators. Victims included investment firms and pension funds such as Pacific Investment Management Co., the world's largest bond fund.
Pimco lost $283 million and Credit Suisse Group AG lost $257 million, Justice Department Trial Attorney Leo Wise told jurors yesterday in closing arguments.
JPMorgan Chase & Co., the largest U.S. bank by market value, agreed to pay $425 million in 2006 to settle claims by Arizona noteholders. The noteholders said JPMorgan and other banks underwrote or were trustees of the notes used to defraud investors.
The case is U.S. v. Poulsen, 06-129, U.S. District Court, Southern District of Ohio (Columbus).
To contact the reporters on this story: David Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net; Denise Trowbridge in Columbus, Ohiot .
Last Updated: October 31, 2008 10:00 EDT
Fraud Case Against National Century's Poulsen Goes to Ohio Jury
By Denise Trowbridge and David Voreacos
Oct. 31 (Bloomberg) -- Jurors began deliberating fraud charges against Lance Poulsen, the National Century Financial Enterprises Inc. founder accused of leading a $2.9 billion fraud before the company's bankruptcy in 2002.
Poulsen, 65, is accused of cheating investors who bought National Century bonds and believed they backed the purchase of unpaid insurance bills from medical providers that needed cash. Prosecutors said Dublin, Ohio-based National Century advanced $2.2 billion to six companies in which Poulsen owned a stake.
Federal jurors in Columbus, Ohio, began weighing fraud, conspiracy, and money-laundering charges this morning after U.S. District Judge Algenon Marbley instructed them on the law last night. Poulsen faces between 30 years and life in prison if convicted. He is already serving 10 years in prison for tampering with a witness against him.
Poulsen testified in his own defense at the trial, which began Oct. 2. He said he never intended to defraud investors, and that all of his actions were permitted by indentures, private-placement memos and other legal documents.
National Century's collapse hastened the bankruptcies of 275 hospitals, clinics, nursing homes and other health-care providers, according to prosecutors and regulators. Victims included investment firms and pension funds such as Pacific Investment Management Co., the world's largest bond fund.
Pimco lost $283 million and Credit Suisse Group AG lost $257 million, Justice Department Trial Attorney Leo Wise told jurors yesterday in closing arguments.
JPMorgan Chase & Co., the largest U.S. bank by market value, agreed to pay $425 million in 2006 to settle claims by Arizona noteholders. The noteholders said JPMorgan and other banks underwrote or were trustees of the notes used to defraud investors.
The case is U.S. v. Poulsen, 06-129, U.S. District Court, Southern District of Ohio (Columbus).
To contact the reporters on this story: David Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net; Denise Trowbridge in Columbus, Ohiot .
Last Updated: October 31, 2008 10:00 EDT
Monday, October 20, 2008
Instead of focusing on Freddie and Fannie. why don’t you go further?
Take a look at the trial, that has resumed TODAY, 10-20-08, inCOlumbus Ohio? National Century Financial Enterprises , Inc. dubbed by Federal Prosecutors as ‘larger than Enron’ !
Do you have a clue what this is all about? Do you know who the last executive in this trial, James K Happ, is? Or where he came from?
More importantly, who he worked for prior to his employment at NCFE?
Take a look at the trial, that has resumed TODAY, 10-20-08, inCOlumbus Ohio? National Century Financial Enterprises , Inc. dubbed by Federal Prosecutors as ‘larger than Enron’ !
Do you have a clue what this is all about? Do you know who the last executive in this trial, James K Happ, is? Or where he came from?
More importantly, who he worked for prior to his employment at NCFE?
Thursday, October 9, 2008
"It is one of the largest frauds the FBI has ever investigated in the history of the U.S.," Williams said.
"...one case, the money paid the legal settlement that National Century owed to companies that National Century executives wholly owned..."
One case? How did they own these companies? Company Stock Issued? Who operated these companies? Where were these companies?
So many questions...so few answers.
And this case goes well beyond 2.9 BILLION in fraud? Well beyond!!
ONE MILLION Transfers?
FBI agent: National Century faked receivables
Wednesday, October 8, 2008 10:15 PM
By Jodi Andes
THE COLUMBUS DISPATCH
By Jodi Andes
THE COLUMBUS DISPATCH
Funds invested with National Century Financial Enterprises were supposed to go toward buying the debts owed to health-care companies.
But in at least one case, the money paid the legal settlement that National Century owed to companies that National Century executives wholly owned, an FBI witness testified today during the fraud trial of Lance K. Poulsen, former National Century chief executive.
Special Agent Jeffrey Williams said a court had ordered National Century in 2001 to pay $7.75 million to three companies: Chartwell, Lifecare and Home Medical of America.
The suit was not detailed in court today, but Williams said National Century executives Poulsen, Donald H. Ayers and Rebecca S. Parrett owned "100 percent" of the three companies and their entities.
National Century executives used investor funds that had been guaranteed for the purchase of accounts receivables. Fake accounts receivable then were added to National Century's computer records, Williams said.
Williams said he analyzed company paper records from before the company filed for bankruptcy in 2002. The failure cost investors $1.9 billion.
The records also showed that Poulsen earned about $12 million during the company's last five years of business.
"It is one of the largest frauds the FBI has ever investigated in the history of the U.S.," Williams said.
John E. Haller, Poulsen's defense attorney, questioned the amount of paperwork and whether Williams put enough time into his analysis.
"Your goal was to make Mr. Poulsen look as bad as possible, wasn't it?" he asked Williams.
"No," the agent replied.
Haller noted that National Century's earnings analysis did not include personal money that Poulsen, and his wife, Barbara, put into the company. The couple paid in $5 million to National Century in 2002, he said.
jandes@dispatch.com
"...one case, the money paid the legal settlement that National Century owed to companies that National Century executives wholly owned..."
One case? How did they own these companies? Company Stock Issued? Who operated these companies? Where were these companies?
So many questions...so few answers.
And this case goes well beyond 2.9 BILLION in fraud? Well beyond!!
ONE MILLION Transfers?
FBI agent: National Century faked receivables
Wednesday, October 8, 2008 10:15 PM
By Jodi Andes
THE COLUMBUS DISPATCH
By Jodi Andes
THE COLUMBUS DISPATCH
Funds invested with National Century Financial Enterprises were supposed to go toward buying the debts owed to health-care companies.
But in at least one case, the money paid the legal settlement that National Century owed to companies that National Century executives wholly owned, an FBI witness testified today during the fraud trial of Lance K. Poulsen, former National Century chief executive.
Special Agent Jeffrey Williams said a court had ordered National Century in 2001 to pay $7.75 million to three companies: Chartwell, Lifecare and Home Medical of America.
The suit was not detailed in court today, but Williams said National Century executives Poulsen, Donald H. Ayers and Rebecca S. Parrett owned "100 percent" of the three companies and their entities.
National Century executives used investor funds that had been guaranteed for the purchase of accounts receivables. Fake accounts receivable then were added to National Century's computer records, Williams said.
Williams said he analyzed company paper records from before the company filed for bankruptcy in 2002. The failure cost investors $1.9 billion.
The records also showed that Poulsen earned about $12 million during the company's last five years of business.
"It is one of the largest frauds the FBI has ever investigated in the history of the U.S.," Williams said.
John E. Haller, Poulsen's defense attorney, questioned the amount of paperwork and whether Williams put enough time into his analysis.
"Your goal was to make Mr. Poulsen look as bad as possible, wasn't it?" he asked Williams.
"No," the agent replied.
Haller noted that National Century's earnings analysis did not include personal money that Poulsen, and his wife, Barbara, put into the company. The couple paid in $5 million to National Century in 2002, he said.
jandes@dispatch.com
"...who the true owners of National Century were..."
"...National Century was a financier of last resort for health-care providers ..."
This is not the only function this FINANCE Company was involved with.
Is the government disclosing all of the FACTS?
"...an attorney for Lance Poulsen sparred with a government witness Wednesday over who the true owners of National Century were..."
This is very telling....REPORTERS....PAY ATTENTION!!!!
Wednesday, October 8, 2008 - 5:30 PM EDT
Poulsen’s attorney questions FBI's National Century probeBusiness First of Columbus - by Kevin Kemper
Attempting to show the government’s investigation of National Century Financial Enterprises Inc. was incomplete, an attorney for Lance Poulsen sparred with a government witness Wednesday over who the true owners of National Century were.
John Haller, Poulsen’s attorney, confronted an FBI agent who earlier told a jury that Poulsen was a primary owner of Dublin-based National Century.
Poulsen, National Century’s former president and CEO, is standing trial in U.S. District Court in Columbus on charges of conspiracy, securities fraud and wire fraud, among others.
The government has accused Poulsen of running a fraud at National Century that resulted in $2.84 billion in investor funds going missing after the company collapsed into bankruptcy in 2002.
Poulsen has pleaded not guilty to all charges.
Jeffrey Williams, an FBI agent specializing in white-collar crime, told a jury Tuesday and Wednesday about his analysis of National Century documents in which he found the company illegally advanced millions of dollars to companies owned by Poulsen and other executives at the firm during National Century’s last four years.
On Wednesday afternoon, Haller attempted to pick apart Williams’ analysis and methods.
“Your goal was to make Mr. Poulsen look as bad as possible, wasn’t it?” Haller asked.
“No,” Williams said.
“You wanted to look for improper transactions only, right?” Haller asked.
“No,” Williams said.
Haller took Williams and the jury through documents that showed seven different owners of National Century, five of which were holding companies.
Williams told Haller that he had not been aware of all the companies with ownership, but noted that some of those holding companies were owned by Poulsen and others.
Under questioning by U.S. Department of Justice Trial Attorney Leo Wise, Williams read from transcript statements made by Poulsen during his August sentencing hearing on witness tampering charges
“There is no question that NCFE was my company. No question your honor,” Poulsen is quoted as saying.
Marbley sentenced Poulsen to 10 years imprisonment on Aug. 8 after a separate jury found Poulsen guilty in March of attempting to bribe a government witness.
Haller and Williams also sparred over a transaction Williams disclosed to the jury earlier in the day. That transaction, Williams said, showed that National Century had diverted investor funds to pay for a lawsuit settlement.
National Century was a financier of last resort for health-care providers such as hospitals and urgent care centers. It purchased accounts receivable from the providers at a discount in exchange for quick cash the providers could use to pay bills. National Century then packaged the receivables as bonds which it sold to investors.
The government has alleged the investor funds were only allowed to be used to purchase accounts receivable. Defense attorneys, however, contend the government is simply misinterpreting National Century’s governing documents.
This is not the only function this FINANCE Company was involved with.
Is the government disclosing all of the FACTS?
"...an attorney for Lance Poulsen sparred with a government witness Wednesday over who the true owners of National Century were..."
This is very telling....REPORTERS....PAY ATTENTION!!!!
Wednesday, October 8, 2008 - 5:30 PM EDT
Poulsen’s attorney questions FBI's National Century probeBusiness First of Columbus - by Kevin Kemper
Attempting to show the government’s investigation of National Century Financial Enterprises Inc. was incomplete, an attorney for Lance Poulsen sparred with a government witness Wednesday over who the true owners of National Century were.
John Haller, Poulsen’s attorney, confronted an FBI agent who earlier told a jury that Poulsen was a primary owner of Dublin-based National Century.
Poulsen, National Century’s former president and CEO, is standing trial in U.S. District Court in Columbus on charges of conspiracy, securities fraud and wire fraud, among others.
The government has accused Poulsen of running a fraud at National Century that resulted in $2.84 billion in investor funds going missing after the company collapsed into bankruptcy in 2002.
Poulsen has pleaded not guilty to all charges.
Jeffrey Williams, an FBI agent specializing in white-collar crime, told a jury Tuesday and Wednesday about his analysis of National Century documents in which he found the company illegally advanced millions of dollars to companies owned by Poulsen and other executives at the firm during National Century’s last four years.
On Wednesday afternoon, Haller attempted to pick apart Williams’ analysis and methods.
“Your goal was to make Mr. Poulsen look as bad as possible, wasn’t it?” Haller asked.
“No,” Williams said.
“You wanted to look for improper transactions only, right?” Haller asked.
“No,” Williams said.
Haller took Williams and the jury through documents that showed seven different owners of National Century, five of which were holding companies.
Williams told Haller that he had not been aware of all the companies with ownership, but noted that some of those holding companies were owned by Poulsen and others.
Under questioning by U.S. Department of Justice Trial Attorney Leo Wise, Williams read from transcript statements made by Poulsen during his August sentencing hearing on witness tampering charges
“There is no question that NCFE was my company. No question your honor,” Poulsen is quoted as saying.
Marbley sentenced Poulsen to 10 years imprisonment on Aug. 8 after a separate jury found Poulsen guilty in March of attempting to bribe a government witness.
Haller and Williams also sparred over a transaction Williams disclosed to the jury earlier in the day. That transaction, Williams said, showed that National Century had diverted investor funds to pay for a lawsuit settlement.
National Century was a financier of last resort for health-care providers such as hospitals and urgent care centers. It purchased accounts receivable from the providers at a discount in exchange for quick cash the providers could use to pay bills. National Century then packaged the receivables as bonds which it sold to investors.
The government has alleged the investor funds were only allowed to be used to purchase accounts receivable. Defense attorneys, however, contend the government is simply misinterpreting National Century’s governing documents.
Sunday, October 5, 2008
Where is James K Happ? The ex-employee of Richard Rainwater?
Letters support ex-CEO, his attorneys say
Saturday, October 4, 2008 8:01 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Anonymous letters alleging corruption at National Century Financial Enterprises didn't sound any alarms with a credit-rating agency, banks or auditors, so the fraud charges against the company's founder are bogus, the defense argued in court yesterday.
Attorneys for former Chief Executive Lance K. Poulsen said the letters bolster their theory that there was no fraud in National Century's business practices if respected banks, auditors and rating agencies knew of and approved the business practices.
Poulsen, 65, is on trial in U.S. District Court in Columbus, accused of money laundering, conspiracy and securities and wire-fraud charges.
The first letter was sent in April 1999, more than three years before National Century collapsed, costing investors more than $1.9 billion. It went to a credit-rating agency, which became part of Fitch Ratings, and suggested that it have a third party go over National Century's books.
A second letter followed four months later. It questioned whether the rating agency didn't take the first letter seriously, or if its personnel "are in on it" or "just not that bright."
The letter said that National Century was "a fraudulent organization" that compiled "misleading and fraudulent documents to fool you fools."
"It is estimated that approximately 50% or more of the $2 billion portfolio is either worthless or nonexistent. And, you continue to place investment-grade ratings on this crap."
A third letter gave more-specific tips, adding, "follow the money dummy."
Jon Beacham, the former National Century director of securitizations, testified that the rating agency did inquire but determined that "no actions were warranted."
The Securities and Exchange Commission has since found Bank One and JPMorgan Chase, which now owns Bank One, culpable for negligent conduct while serving as National Century's bank trustees.
The commission has made similar findings with accounting firms PricewaterhouseCoopers and Deloitte &
Touche that audited National Century.
Also yesterday, Poulsen attorney Pete Anderson asked U.S. District Judge Algenon L. Marbley to give Poulsen new jail accommodations.
Housed in a pod of the Franklin County jail with young criminals who are not as concerned about sleep, Poulsen has been getting little more than an hour of rest a night, Anderson said.
"Soon, he will be useless to participate in his own defense," Anderson said.
Marbley suggested isolation, but Poulsen declined, saying through his attorney that there is no heat or air conditioning in isolation and that it still is noisy. Marbley replied that he will see what, if anything, can be done.
jandes@dispatch.com
Saturday, October 4, 2008 8:01 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Anonymous letters alleging corruption at National Century Financial Enterprises didn't sound any alarms with a credit-rating agency, banks or auditors, so the fraud charges against the company's founder are bogus, the defense argued in court yesterday.
Attorneys for former Chief Executive Lance K. Poulsen said the letters bolster their theory that there was no fraud in National Century's business practices if respected banks, auditors and rating agencies knew of and approved the business practices.
Poulsen, 65, is on trial in U.S. District Court in Columbus, accused of money laundering, conspiracy and securities and wire-fraud charges.
The first letter was sent in April 1999, more than three years before National Century collapsed, costing investors more than $1.9 billion. It went to a credit-rating agency, which became part of Fitch Ratings, and suggested that it have a third party go over National Century's books.
A second letter followed four months later. It questioned whether the rating agency didn't take the first letter seriously, or if its personnel "are in on it" or "just not that bright."
The letter said that National Century was "a fraudulent organization" that compiled "misleading and fraudulent documents to fool you fools."
"It is estimated that approximately 50% or more of the $2 billion portfolio is either worthless or nonexistent. And, you continue to place investment-grade ratings on this crap."
A third letter gave more-specific tips, adding, "follow the money dummy."
Jon Beacham, the former National Century director of securitizations, testified that the rating agency did inquire but determined that "no actions were warranted."
The Securities and Exchange Commission has since found Bank One and JPMorgan Chase, which now owns Bank One, culpable for negligent conduct while serving as National Century's bank trustees.
The commission has made similar findings with accounting firms PricewaterhouseCoopers and Deloitte &
Touche that audited National Century.
Also yesterday, Poulsen attorney Pete Anderson asked U.S. District Judge Algenon L. Marbley to give Poulsen new jail accommodations.
Housed in a pod of the Franklin County jail with young criminals who are not as concerned about sleep, Poulsen has been getting little more than an hour of rest a night, Anderson said.
"Soon, he will be useless to participate in his own defense," Anderson said.
Marbley suggested isolation, but Poulsen declined, saying through his attorney that there is no heat or air conditioning in isolation and that it still is noisy. Marbley replied that he will see what, if anything, can be done.
jandes@dispatch.com
Tuesday, August 19, 2008
"...much about NCFE remains shrouded in secrecy"
Do you wonder why the"SECRECY" ?
Lets look at Friends of GW BUSH..& Mr McCAIN for that matter......
NCFE: Death-Dealing Side of the Bubble
by John Hoefle
Lyndon LaRouche has long maintained that it is not just the collapse of the world's largest financial bubble that is deadly. Attempting to maintain that bubble is measured in lives wasted, destroyed, and lost. The bankruptcy of, and mushrooming scandal around, National Century Financial Enterprises (NCFE), provides an insight into how this destructive process works, and illustrates the consequences of failing to re-regulate industry and infrastructure, to stop such abuses.
In the aftermath of the near-meltdown of the global financial system in September 1998, the world's major central banks, led by the Federal Reserve, printed and unleashed what speculator/drug-pusher George Soros blithely called a "wall of money," in a desperate attempt to stave off a total blowout. Part of these "walls of money" pumped into the banking systems was used to carve out wider channels for existing income streams to flow into the banks' pockets. Some of these measures were legal; others were allowed only because Congress had legalized them by systematically dismantling existing protections; and some were illegal even in a fraud-friendly environment. The post-1998 policy was, in effect, to beg, borrow, or steal anything that could be stolen, and throw it into the bubble.
It is this combination of monetary policy, deregulation and financial asset-grabbing which created the dot.com bubble, the related telecom bubble, and the Enron/energy pirates' Wall Street bubble; all of which have subsequently exploded and are now revealed to be what LaRouche had said they were—scams. Now, with the bankruptcy of NCFE, another aspect of this post-1998 looting comes out of the shadows and into the light.
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.
When Federal Reserve Chairman Sir Alan Greenspan talks about how the derivatives market has saved the financial system by spreading the risk, one of the elements he has in mind, no doubt, is the asset-backed securities market, which has doubled in size since 1998. As of the second quarter of 2002, there were $1.4 trillion in asset-backed securities outstanding, according to the Bond Market Association. Of this amount, $394 billion—28% of the total—were securities backed by credit-card payments; $234 billion—17%—were backed by home equity payments; and $205 billion—14%—were backed by auto-loan payments.
Asset-backed securities account for only 7% of the $20 trillion U.S. bond market, falling well short of the $4.5 trillion in mortgage-related bonds, or the $4 trillion in corporate bonds, but they play an important role in what is politely called "risk management." Commercial banks have been quite active in recent years, converting their credit-card and other loans into asset-backed securities, which are then sold primarily to institutional investors. The effect is to take the loans off the banks' books, shifting the risk of non-payment of the loans from the banks, to the owners of the securities. In these days of soaring debts and a shrinking economy, such a method for shifting losses from banks to pension, mutual, and other publicly owned funds is no small consideration for a financier.
The Squeeze
NCFE was basically in the business of loaning hospitals, nursing homes, and other medical facilities money to get them through the period between when they provide a service and when they get reimbursed for that service by the relevant insurance company or government agency. The more slowly they received their payments, the weaker their financial condition; since the health maintenance organizations were notorious for delaying reimbursements, the HMOs created the opening for NCFE (and others, though NCFE was the largest player in the field) to step in and fill the gap. For a fee, of course. Caught in this squeeze, more than 100 clients signed up for NCFE's services, with the company buying $15 billion in receivables and issuing $6 billion in asset-backed securities since its founding in 1991.
As a private company not required to make public filings with the Securities and Exchange Commission, much about NCFE remains shrouded in secrecy. But one can tell a lot by looking at its board, which consisted of four of the company's founders and two executives of J.P. Morgan Chase, which controls 16% of the company through its Beacon Group III private equity fund. In addition, Morgan Chase and Bank One are trustees for NCFE's bond trusts. The bonds themselves were underwritten by Crédit Suisse First Boston, the investment banking arm of Switzerland's Crédit Suisse banking/insurance giant. The top purchasers of the bonds included PIMCO, the world's largest bond fund and a subsidiary of insurer Allianz, the world's third-largest financial institution; Alliance Capital Management, an arm of French insurance giant Axa; and ING, the Dutch insurance/banking conglomerate.
All in all, NCFE appears to fit the profile of a looting operation, whose existence served mainly to divert a portion of the health-care income stream into the pockets of some of the biggest financial institutions in the world. Now it has collapsed, leaving a bankruptcy wave which is now spreading among medical providers, with disastrous consequences for the health-care system and its patients.
Lets look at Friends of GW BUSH..& Mr McCAIN for that matter......
NCFE: Death-Dealing Side of the Bubble
by John Hoefle
Lyndon LaRouche has long maintained that it is not just the collapse of the world's largest financial bubble that is deadly. Attempting to maintain that bubble is measured in lives wasted, destroyed, and lost. The bankruptcy of, and mushrooming scandal around, National Century Financial Enterprises (NCFE), provides an insight into how this destructive process works, and illustrates the consequences of failing to re-regulate industry and infrastructure, to stop such abuses.
In the aftermath of the near-meltdown of the global financial system in September 1998, the world's major central banks, led by the Federal Reserve, printed and unleashed what speculator/drug-pusher George Soros blithely called a "wall of money," in a desperate attempt to stave off a total blowout. Part of these "walls of money" pumped into the banking systems was used to carve out wider channels for existing income streams to flow into the banks' pockets. Some of these measures were legal; others were allowed only because Congress had legalized them by systematically dismantling existing protections; and some were illegal even in a fraud-friendly environment. The post-1998 policy was, in effect, to beg, borrow, or steal anything that could be stolen, and throw it into the bubble.
It is this combination of monetary policy, deregulation and financial asset-grabbing which created the dot.com bubble, the related telecom bubble, and the Enron/energy pirates' Wall Street bubble; all of which have subsequently exploded and are now revealed to be what LaRouche had said they were—scams. Now, with the bankruptcy of NCFE, another aspect of this post-1998 looting comes out of the shadows and into the light.
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.
When Federal Reserve Chairman Sir Alan Greenspan talks about how the derivatives market has saved the financial system by spreading the risk, one of the elements he has in mind, no doubt, is the asset-backed securities market, which has doubled in size since 1998. As of the second quarter of 2002, there were $1.4 trillion in asset-backed securities outstanding, according to the Bond Market Association. Of this amount, $394 billion—28% of the total—were securities backed by credit-card payments; $234 billion—17%—were backed by home equity payments; and $205 billion—14%—were backed by auto-loan payments.
Asset-backed securities account for only 7% of the $20 trillion U.S. bond market, falling well short of the $4.5 trillion in mortgage-related bonds, or the $4 trillion in corporate bonds, but they play an important role in what is politely called "risk management." Commercial banks have been quite active in recent years, converting their credit-card and other loans into asset-backed securities, which are then sold primarily to institutional investors. The effect is to take the loans off the banks' books, shifting the risk of non-payment of the loans from the banks, to the owners of the securities. In these days of soaring debts and a shrinking economy, such a method for shifting losses from banks to pension, mutual, and other publicly owned funds is no small consideration for a financier.
The Squeeze
NCFE was basically in the business of loaning hospitals, nursing homes, and other medical facilities money to get them through the period between when they provide a service and when they get reimbursed for that service by the relevant insurance company or government agency. The more slowly they received their payments, the weaker their financial condition; since the health maintenance organizations were notorious for delaying reimbursements, the HMOs created the opening for NCFE (and others, though NCFE was the largest player in the field) to step in and fill the gap. For a fee, of course. Caught in this squeeze, more than 100 clients signed up for NCFE's services, with the company buying $15 billion in receivables and issuing $6 billion in asset-backed securities since its founding in 1991.
As a private company not required to make public filings with the Securities and Exchange Commission, much about NCFE remains shrouded in secrecy. But one can tell a lot by looking at its board, which consisted of four of the company's founders and two executives of J.P. Morgan Chase, which controls 16% of the company through its Beacon Group III private equity fund. In addition, Morgan Chase and Bank One are trustees for NCFE's bond trusts. The bonds themselves were underwritten by Crédit Suisse First Boston, the investment banking arm of Switzerland's Crédit Suisse banking/insurance giant. The top purchasers of the bonds included PIMCO, the world's largest bond fund and a subsidiary of insurer Allianz, the world's third-largest financial institution; Alliance Capital Management, an arm of French insurance giant Axa; and ING, the Dutch insurance/banking conglomerate.
All in all, NCFE appears to fit the profile of a looting operation, whose existence served mainly to divert a portion of the health-care income stream into the pockets of some of the biggest financial institutions in the world. Now it has collapsed, leaving a bankruptcy wave which is now spreading among medical providers, with disastrous consequences for the health-care system and its patients.
Small hospitals, nursing homes and other health care providers .....Really?
I thought HCA was the largest Healthcare Provider in the country?
National Century Financial Enterprises Executives - GUILTY - in $3 Billion Securities Fraud Scheme!
March 16, 2008
It is true - every choice has a consequence! That statement holds true in every choice you make in life. Just like gravity, you can’t avoid the consequences of choices that you make. Now, don’t misread that statement - consequences don’t alway mean “bad” - they are just consequences. Your choices can create - Negative Consequences or Positive Results. By your choices you decide.
The Columbus Dispatch reported that 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.
In the case of Donald H. Ayers, age 71, of Fort Meyers, Florida - Rebecca S. Parrett, age 59, of Carefree, Arizona - Randolph H. Speer, age 58, of Peachtree City, Georgia - Roger S. Faulkenberry, age 46, of Dublin, Ohio - and James E. Dierker, age 40, or Powell, Ohio - the choices they made as officers of National Century Financial Enterprises have yielded what will be a certain unpleasant consequence - likely time in federal prison.
Based on charges of conspiracy, fraud and money laundering, the jury returned the guilty verdict on all charges contained in a 27-count superseding indictment stemming from a scheme to deceive investors about the financial health of NCFE. The company, which was based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
“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. “The FBI continues to leverage its corporate fraud expertise gained through large-scale investigations such as Enron and WorldCom, to ensure that corporations represent their true health. From Dublin, Ohio, to Houston, Texas to New York, New York, the message is clear that the FBI will not stand by as corporate executives manipulate their financial statements and conceal illegal activities from criminal and regulatory authorities.”
According the the news release from the US Attorney’s office:
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.
NCFE presented a business model to investors and rating agencies that called for NCFE to purchase high-quality accounts receivable from healthcare providers using money NCFE obtained through the sale of asset-backed notes to institutional investors. The evidence at trial showed that NCFE advanced money to health care providers without receipt of the requisite accounts receivable, oftentimes to healthcare providers that were owned in whole or in part by the defendants. The evidence further showed that the defendants lied to investors and rating agencies in order to cover up this fraud.
Small hospitals, nursing homes and other health care providers sold their accounts receivable to the company, usually getting 80 or 90 cents on the dollar, rather than waiting for insurance payments. National Century then collected the full amount of the payments.
The evidence at trial showed that NCFE concealed from investors the shortfalls produced by this fraud by moving money back and forth between accounts, fabricating data in investor reports, incorporating false information into the accounting system, and making other false statements to investors and rating agencies. Moreover, the defendants’ compensation was tied to the amount of money they advanced to healthcare providers and those providers’ outstanding balance owed to NCFE. The government presented evidence at trial that showed that the defendants knew that the business model NCFE presented to the investing public differed drastically from the way NCFE did business within its own walls and that NCFE was making up the information contained in monthly investor reports to make it appear as though NCFE was in compliance with its own governing documents.
“These convictions send a clear message to corporate America that executives will be brought to justice for lying to investors and misrepresenting the actions taken in their normal course of business,” said Deputy Attorney General Mark Filip, chairman of the President’s Corporate Fraud Task Force. “These are the latest successes in our efforts to improve the integrity of our financial markets.”
“By holding accountable those who break the law, today’s convictions help restore some of the faith and trust the public loses every time corporate executives defraud their investors. The jury’s verdict demonstrates that the public will not stand by while company executives commit billion dollar frauds, leaving the honest investors to bear the losses they create,” said Assistant Attorney General Alice S. Fisher.
Facing millions of dollars in fines and up to 140 years in prison, the corporate officers found guilty here will have time to reflect on the choices they made and the consequences that follow.
White Collar Crime and Business Ethics Speaker - Today, I speak to groups nationwide about Choices and Consequences. Do your employees make the best choices for your company—or for themselves? Are you ready for some straight talk about success, choices, and ethics from a business executive who lost it all…and gained more than he could ever imagine?
In an unusually vulnerable style, I explore the decisions we make through the veil of honesty, integrity, and ethics. Your audience will be touched by this personal story and poignant lessons. Having been where the guilty executives above are going, I know first hand the pain caused by poor choices and practical ways to avoid making poor choices.
For information about my presentations, visit my website - www.chuckgallagher.com
Your comments on this blog are
National Century Financial Enterprises Executives - GUILTY - in $3 Billion Securities Fraud Scheme!
March 16, 2008
It is true - every choice has a consequence! That statement holds true in every choice you make in life. Just like gravity, you can’t avoid the consequences of choices that you make. Now, don’t misread that statement - consequences don’t alway mean “bad” - they are just consequences. Your choices can create - Negative Consequences or Positive Results. By your choices you decide.
The Columbus Dispatch reported that 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.
In the case of Donald H. Ayers, age 71, of Fort Meyers, Florida - Rebecca S. Parrett, age 59, of Carefree, Arizona - Randolph H. Speer, age 58, of Peachtree City, Georgia - Roger S. Faulkenberry, age 46, of Dublin, Ohio - and James E. Dierker, age 40, or Powell, Ohio - the choices they made as officers of National Century Financial Enterprises have yielded what will be a certain unpleasant consequence - likely time in federal prison.
Based on charges of conspiracy, fraud and money laundering, the jury returned the guilty verdict on all charges contained in a 27-count superseding indictment stemming from a scheme to deceive investors about the financial health of NCFE. The company, which was based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
“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. “The FBI continues to leverage its corporate fraud expertise gained through large-scale investigations such as Enron and WorldCom, to ensure that corporations represent their true health. From Dublin, Ohio, to Houston, Texas to New York, New York, the message is clear that the FBI will not stand by as corporate executives manipulate their financial statements and conceal illegal activities from criminal and regulatory authorities.”
According the the news release from the US Attorney’s office:
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.
NCFE presented a business model to investors and rating agencies that called for NCFE to purchase high-quality accounts receivable from healthcare providers using money NCFE obtained through the sale of asset-backed notes to institutional investors. The evidence at trial showed that NCFE advanced money to health care providers without receipt of the requisite accounts receivable, oftentimes to healthcare providers that were owned in whole or in part by the defendants. The evidence further showed that the defendants lied to investors and rating agencies in order to cover up this fraud.
Small hospitals, nursing homes and other health care providers sold their accounts receivable to the company, usually getting 80 or 90 cents on the dollar, rather than waiting for insurance payments. National Century then collected the full amount of the payments.
The evidence at trial showed that NCFE concealed from investors the shortfalls produced by this fraud by moving money back and forth between accounts, fabricating data in investor reports, incorporating false information into the accounting system, and making other false statements to investors and rating agencies. Moreover, the defendants’ compensation was tied to the amount of money they advanced to healthcare providers and those providers’ outstanding balance owed to NCFE. The government presented evidence at trial that showed that the defendants knew that the business model NCFE presented to the investing public differed drastically from the way NCFE did business within its own walls and that NCFE was making up the information contained in monthly investor reports to make it appear as though NCFE was in compliance with its own governing documents.
“These convictions send a clear message to corporate America that executives will be brought to justice for lying to investors and misrepresenting the actions taken in their normal course of business,” said Deputy Attorney General Mark Filip, chairman of the President’s Corporate Fraud Task Force. “These are the latest successes in our efforts to improve the integrity of our financial markets.”
“By holding accountable those who break the law, today’s convictions help restore some of the faith and trust the public loses every time corporate executives defraud their investors. The jury’s verdict demonstrates that the public will not stand by while company executives commit billion dollar frauds, leaving the honest investors to bear the losses they create,” said Assistant Attorney General Alice S. Fisher.
Facing millions of dollars in fines and up to 140 years in prison, the corporate officers found guilty here will have time to reflect on the choices they made and the consequences that follow.
White Collar Crime and Business Ethics Speaker - Today, I speak to groups nationwide about Choices and Consequences. Do your employees make the best choices for your company—or for themselves? Are you ready for some straight talk about success, choices, and ethics from a business executive who lost it all…and gained more than he could ever imagine?
In an unusually vulnerable style, I explore the decisions we make through the veil of honesty, integrity, and ethics. Your audience will be touched by this personal story and poignant lessons. Having been where the guilty executives above are going, I know first hand the pain caused by poor choices and practical ways to avoid making poor choices.
For information about my presentations, visit my website - www.chuckgallagher.com
Your comments on this blog are
Thursday, August 14, 2008
Can't make a connection with NCFE?
The Wall Street Journal: What prompted this book?
T. Boone Pickens: I felt like a lot had happened to me. I left Mesa [Petroleum] in 1996 and the 12 years that followed were the most productive years of my life. Also, I came from a small town in eastern Oklahoma, and I think that I can still reach a young audience who want to know that average intelligence and a good work ethic is all you need.
WSJ: You were in effect fired as CEO of Mesa Petroleum by Richard Rainwater and his wife Darla Moore in 1996. In this book, you settle scores with them, adding the occasional shot to the ribs. What about forgetting and forgiving?
Mr. Pickens: If somebody I don't like gets in the crosshairs, I pull the trigger. But I don't hunt for them. The reason for paying them back is that they couldn't make a professional transition. You want your departure after 40 years to be pleasant, not unpleasant. They did things that were totally unnecessary, so that's why I said what I said.
I wonder what else T. Boone Pickens knows regarding these two and their Financial Investment Firms and our HEALTHCARE SYSTEM. Hmmm......
T. Boone Pickens: I felt like a lot had happened to me. I left Mesa [Petroleum] in 1996 and the 12 years that followed were the most productive years of my life. Also, I came from a small town in eastern Oklahoma, and I think that I can still reach a young audience who want to know that average intelligence and a good work ethic is all you need.
WSJ: You were in effect fired as CEO of Mesa Petroleum by Richard Rainwater and his wife Darla Moore in 1996. In this book, you settle scores with them, adding the occasional shot to the ribs. What about forgetting and forgiving?
Mr. Pickens: If somebody I don't like gets in the crosshairs, I pull the trigger. But I don't hunt for them. The reason for paying them back is that they couldn't make a professional transition. You want your departure after 40 years to be pleasant, not unpleasant. They did things that were totally unnecessary, so that's why I said what I said.
I wonder what else T. Boone Pickens knows regarding these two and their Financial Investment Firms and our HEALTHCARE SYSTEM. Hmmm......
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