Bigger than Enron...what about the Tennessee Largest Bankruptcy

Tennessee's Largest Bankruptcy in 1999 held most of NCFE so called purchases.

What about the bankruptcy fraud for the case filed July 29, 1999 in Memphis Bankruptcy Court? All the NCFE Debtor in Posession finance tool used to hide Columbia Homecare Group?

The court room full of lawyers cried FRAUD- the judge forbade the 'F' word in her court.



National Century victims awaiting repayment
Sunday, May 3, 2009 3:22 AM
By John Futty

THE COLUMBUS DISPATCH
When National Century Financial Enterprises collapsed into fraud-fueled bankruptcy, few investors were hit as hard as those in Arizona.

More than 100 of the state's agencies and communities were in an investment pool that held notes worth $131 million in the Dublin-based health-care finance company. Chandler, Ariz., a suburb of Phoenix, took the largest individual hit, losing $13 million.

"There was shock, there was disbelief," said Nachie Marquez, a spokeswoman for the city. "It's taxpayer funds. You put your trust in an investment pool and you think it's safe."

The Arizona investors were among hundreds of institutional victims across the U.S. whose losses totaled $2.38 billion -- the largest known fraud case in the country involving a private company.

The government is "aggressively working" to recover the money from the founders and executives of National Century. They were ordered to pay restitution after they were convicted in federal court in Columbus of conspiracy, securities fraud, mail fraud and money laundering, said Assistant U.S. Attorney Doug Squires.

Last week, U.S. District Judge Algenon L. Marbley issued an order requiring National Century co-founder Lance K. Poulsen, considered the architect of the scheme, and his co-conspirators to forfeit $1.7 billion in assets, the amount prosecutors say represents the proceeds of the conspiracy.

But attorneys for the victims say they are more likely to recover the most significant amounts through lawsuits filed against financial institutions that allegedly are liable for the fraud.

"While we appreciate the government's efforts to squeeze money out of the individual criminal defendants," the financial institutions named in the civil litigation "are able to pay much more than any of these folks have," said Scott Humphries of Houston-based Gibbs & Bruns. The law firm represents investors who lost a total of $1.6 billion.

Investors filed a flurry of lawsuits against National Century, its executives and its financial advisers after the company filed for bankruptcy in 2002. The suits, involving hundreds of plaintiffs in five states, were combined in 2003 and assigned to one federal judge in Columbus.

JPMorgan Chase, a trustee for National Century funds, agreed to pay $425 million to settle its portion of the lawsuit in February 2006, according to an annual report it filed with the Securities and Exchange Commission.

The plaintiffs said JPMorgan Chase was negligent in allowing National Century to make fraudulent transfers among its accounts and for not detecting or revealing the illegal activity to investors.

Settlement money and insurance coverage helped the city of Chandler recoup some of its losses, Marquez said.

"We've recovered about 40 cents on the dollar for our clients," Humphries said.

Civil litigation continues against Credit Suisse, the investment bank that issued National Century's bonds.

Meanwhile, the U.S. attorney's office has collected $2.3 million so far from the criminal defendants, said Fred Alverson, an office spokesman.

The total includes $396,178 that federal agents seized in March from the bank account of Rebecca S. Parrett, a National Century executive who has been a fugitive since shortly after her conviction in March 2008.

The money recovered from the defendants was delivered to the federal clerk's office but has not been distributed to any victims, Alverson said.

National Century purchased the accounts receivable from hospitals, clinics and nursing homes using money obtained by selling asset-backed notes to institutional investors.

Evidence in the criminal trials showed that the company executives diverted money to support their lavish lifestyles and made unsecured loans to the health-care providers, leading to the company's collapse.

The bankruptcy process had begun in 2002 when the FBI obtained a warrant to search the company's Dublin headquarters. Agents collected more than 2,000 boxes of documents and computer files that formed the basis for an investigation involving the FBI, the Internal Revenue Service, U.S. postal inspectors and Immigration and Customs Enforcement.

Institutional investors, which included police and firefighter pension funds, churches, labor unions, cities and counties, and insurance companies, were led to believe the company's bonds were among the safest investments available.

The business model presented to investors was solid but never followed by the company, Squires said.

"(Company executives) did not dip their toes in the pool of fraud, they jumped in from Day One," he said. "From the first investor report, it was fraudulent."

The assets of the conspirators were researched by the federal probation office, but the information is not public record. Defense attorneys have said their clients' assets largely were exhausted while fighting the criminal charges.

Squires said the U.S. attorney's office will attempt to get "every available penny" from those convicted by seizing bank accounts, pensions, 401(k)s and property.

jfutty@dispatch.com


--------------------------------------------------------------------------------
On the Web • Watch a video of Assistant U.S. Attorney Doug Squires at Dispatch.com/video. For complete coverage of the National Century case, visit Dispatch.com/metro.

Rick Scott, Bigger then Enron

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
242 Marylebone Road London, NW1 6JL
News & Events Careers Sitemap Legal

2008-

Welcome to London's leading private hospitals
Text size: A A
With six world-class hospitals and four outpatient medical centres in London, we are the private hospitals of choice for the successful treatment of serious and complex medical conditions. We also achieve some of the highest patient outcome and survival rates in the UK and our hospitals are virtually MRSA-free*

Wall Street Journal - Richard Scott HEALTHCARE BANDIT

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

THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
WASHINGTON, D.C.
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.

Why does this matter? The wrath of Richard Scott and friends is to this day still affecting main street America.

Who is Richard Scott? More importantly, who are Richard Rainwater & his wife, 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.

In 1997, Fortune magazine ran a cover story on successful business executive Darla Moore, titled "The Toughest Babe in Business."….She created the corporate bankruptcy finance tool, DIP, debtor in possession while at a Wall Street bank.

Columbia/HCA is a partnership of financier Richard Rainwater of Ft. Worth and lawyer Richard Scott. Scott was recently terminated by Darla Moore, the wife of Richard Rainwater and according to Fortune Magazine, the “Toughest Babe in the Business”.
As part of Richard Scott's severance package from Columbia he was paid $5.13 million and given a five year consulting contract at $950,000 per year. His former president, Mr. Vandewater was paid $3.24 million and given a five year consulting contract at $600,000 per year.

Both former executives are allowed to exercise vested stock options within 90 days. Scott owned or had options on 9.4 million shares of Columbia stock as of May, 1997. Vanderwater controlled 617,375 shares. Columbia has agreed to pay attorney's fees and any fines or judgments against the two. In addition, the two former executives get their office expenses paid for two years including secretaries. If they move within the next two years their moving expenses are paid by Columbia/HCA. Not a bad deal for someone who just got fired! Wow! What a surprise!

Rainwater also owned a large stake in Magellan Health Care which controls Charter Medical. Magellan, run by Darla Moore, is the largest network of psychiatric hospitals in the country. They are becoming more and more involved in obtaining government money for services formerly not covered as health care, according to Fortune Magazine.

Columbia just decided to sell its home health-care business and its head announced she is forming a company of her own. The home care unit is valued at $ 450 million.

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

Why does this matter- September 8, 1998?

We must review the case that just ended in December 2008 in Columbus Ohio with National Century Financial Enterprises which was headquartered in Dublin, Ohio. It began in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio

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.

Just a reminder relating to the need for ‘healthcare financial service’ i.e. (NCFE) National Century Financial Enterprises; home health - which was struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.

3/9/2006
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

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!

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?

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.

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.

WANTED By the US Marshals....

Mr. James K Happ
I wonder if there were people involved in her disappearance deeper than what was exposed in the court. I guess they couldn’t find her dead in bed like they did Ken Lay, remember him, Mr. Enron!

Good thing she disappeared prior to the one and only executive to be acquitted in the last trial of this six year case, Mr. James K Happ. Prior to the arrival at National Century Financial Enterprises (NCFE), the ex-CFO of Columbia Homecare Group, Inc. was the only acquittal and the last executive to stand trial, December 2008. Mr. James K Happ

National Century figure is featured fugitive
Thursday, January 8, 2009 10:06 PM
BY TIM DOULIN
THE COLUMBUS DISPATCH

WANTED By the US Marshals
http://www.rebeccaparrett.com/
Case Synopsis:
From 1995 to 2002, PARRETT and eight others participated in a large-scale fraud involving investments in accounts receivables owed to healthcare providers. PARRETT and her co-conspirators owned and operated National Century Financial Enterprises (NCFE), which purchased accounts receivable or money owed to healthcare providers by government and private insurance companies. This allowed the healthcare providers cash up-front in lieu of waiting for payments from the insurance companies. NCFE raised the funds to provide to the healthcare providers by selling asset-backed bonds or notes to investors, such as financial institutions, pension funds, and investment firms. These notes were offered through NCFE's subsidiaries, including NPF VI, Inc. and NPF XII, Inc. Investors were promised that these high-quality accounts receivables were actually purchased and owned by NPF VI, Inc. and NPF XII, Inc. and served as collateral. Instead of using investors’ money as promised to purchase accounts receivable from its healthcare provider clients, and for other authorized expenses, PARRETT and others, defrauded investors and enriched themselves. PARRETT provided money to certain healthcare providers far in excess of the value of their accounts receivable, thus providing unsecured loans to less than creditworthy borrowers, many of whom were entities in which PARRETT directly or indirectly maintained an ownership interest. As a result, these healthcare provider clients owed NCFE tens, and even hundreds, of millions of dollars, which created growing shortfalls in NPF VI and NPF XII. PARRETT concealed from investors these unsecured advances and the resulting shortfalls by making false statements to investors, fabricating financial data provided to investors, double counting funds in NPF VI and NPF XII by transferring money between the two programs on different days, and loading false data onto the accounts receivable system. In November 2002, unable to continue this fraud, NCFE filed for bankruptcy protection, while NPF VI and NPF XII owed bondholders approximately $840 million and $2 billion, respectively, amounts far outweighing the value of the accounts receivable and all other collateral held by NCFE or their healthcare provider clients. The total amount of proceeds earned from the fraud is approximately USD 1.772 billion, of which, USD 7.6 million went directly to PARRETT. On 13 March 2008, in the District Court, Southern District of Ohio, PARRETT was found guilty by a jury of conspiracy to commit fraud, six counts of securities fraud, wire fraud, and money laundering conspiracy, but fled before she could be sentenced, resulting in the issuance of a warrant for her arrest on 28 March 2008.

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.

DECEMBER 2008- National Century fraud case produces 1st acquittal
Thursday, December 18, 2008 3:29 AM Prosecutors' case fell short, juror says
By Jodi Andes THE COLUMBUS DISPATCH
The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he
and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."

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.

MISSED THE BIGGER PICTURE FOLKS!!!!

"Happ’s trial is expected to last most of December..."
The ONLY EXECUTIVE TO WALK AWAY....hmmm.....

Really? Funny how that LAST trial went to fast? Did not matter that Happ came from HCA ---RICHARD RAINWATER'S 'pet' Columbia Homecare Group...he dumped those into the Bankruptcy Court 6 mos prior in Western Tennessee's Medshares PONZI SCHEME!!!

What a bunch of CRAP!!!


Monday, December 1, 2008
NCFE’s Happ starts his day in courtBusiness First of Columbus - by Kevin Kemper




The fourth and final criminal trial involving a former executive of National Century Financial Enterprises Inc. began Monday at U.S. District Court in Columbus as lawyers picked jurors to decide the fate of James Happ.

The government has accused Happ of a count each of conspiracy and money laundering conspiracy plus three counts of wire fraud.

He has pleaded not guilty to all of the charges.

The former executive vice president of Dublin-based National Century is standing trial on accusations he was part of an executive-level cabal at the medical financing company that defrauded investors out of $2.84 billion.

Happ’s trial began at 9 a.m. with jury selection, which was expected to last the day. It will be followed by opening arguments from government attorneys and then defense lawyers, likely to begin Tuesday.

Happ becomes the seventh National Century executive to stand trial on fraud charges and the 11th to be charged with crimes. Six other former executives, including company founders Lance Poulsen, Rebecca Parrett and her ex-husband Donald Ayers, were found guilty by juries earlier in the year.

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 workers at its office campus in Dublin while recording annual revenue of more than $250 million.

The government has alleged the company collapsed into bankruptcy in 2002 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.

Happ’s trial is expected to last most of December.

JPMorgan Chase, Citigroup, James K Happ, Columbia Homecare Group, Richard Rainwater, aka HCA

"Ponzi scheme that raised $60 million from investors across the country"


The push to credit 'mortgage-back securities' as the causal effect of our financial crisis is very troubling and misleading.

Yes,the home mortgage crisis is a huge contribution, however do you honestly believe Iceland, a Country, has gone bankrupt because of 'low income'or 'mortgage backed securitues'?
We cannot continue to allow the false rhetoric to soar and the truth to be buried. If we continue to blame 'mortgage-backed securites" as the root of the problem, justice will never be ceased.

We need to get to the root of this Global Financial Crisis, whatever the outcome.

Remember, Corporate Bankruptcy,Debtor in Possession Financing,(Darla Moore's invention-Richard Rainwater's wife), Healthcare Fraud and REIT's would be a great start.

I believe we should go back to 1997. The year Healthcare Reform was passed.

In 1997, the largest healthcare company in the nation was the "Frist Family" and friends' Hospital Corporation of America , HCA, or any one of their affiliates...There are many players here so try to keep up!

FOR IMMEDIATE RELEASE
THURSDAY, JUNE 26, 2003
WWW.USDOJ.GOV
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED
HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION

WASHINGTON, D.C. - HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company) has agreed to pay the United States $631 million in civil penalties and damages arising from false claims the government alleged it submitted to Medicare and other federal health programs, the Justice Department announced today.

One must wonder about the mortgage-related securities JPMorgan is taking onto its books. The following are not the only questionable liabilities JPMorgan has taken on that Richard Rainwater was directly involved with and I am not referring to oil.

JPMorgan is taking on about $176 billion of WaMu home loans, and marking down almost $31 billion of that right off the bat.

Just before the Real Estate crash in 2007, JPMorgan Chase financed Richard Rainwater's REIT, Crescent (CEI) sale. (Many investors wondered about this move)

Jul 28, 2003
2003-87
SEC Settles Enforcement Proceedings against J.P. Morgan Chase and Citigroup
FOR IMMEDIATE RELEASE
J.P. Morgan Chase Agrees to Pay $135 Million to Settle SEC Allegations that It Helped Enron Commit Fraud
Citigroup Agrees to Pay $120 Million to Settle SEC Allegations that It Helped Enron and Dynegy Commit Fraud

The following is an excerpt from a 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.

The three current or former Firm employees are sued in their roles as former members of NCFE's board of directors
National Century Financial Enterprises litigation. JPMorgan Chase, JPMorgan Chase Bank, JPMorgan Partners, Beacon Group, LLC and three current or former Firm employees have been named as defendants in more than a dozen actions filed in or transferred to the United States District Court for the Southern District of Ohio (the "MDL Litigation"). In the majority of these actions, Bank One, Bank One, N.A., and Banc One Capital Markets, Inc. are also named as defendants.

JPMorgan Chase Bank and Bank One, N.A. are also defendants in an action brought by The Unencumbered Assets Trust ("UAT"), a trust created for the benefit of the creditors of National Century Financial Enterprises, Inc. ("NCFE") as a result of NCFE's Plan of Liquidation in bankruptcy.
"...the Order finds that JPMorgan Chase was a cause of NCFE's violations of Section 17(a)(3) of the Securities Act, requires JPMorgan Chase to cease and desist from committing or causing any violations and any future violations of Section 17(a)(3) of the Securities Act, and orders JPMorgan Chase to pay disgorgement of $1,286,808.82 and prejudgment interest of $711,335.76. JPMorgan Chase consented to the issuance of the Order without admitting or denying any of the findings therein."

JP Morgan Settles SEC Proceeding Relating to Activities as Trustee to National Century Financial Enterprises

The SEC settled administrative proceedings against JPMorgan Chase & Co relating to its activities as an asset-backed indenture trustee for certain special-purpose subsidiary programs (programs) of National Century Financial Enterprises, Inc. (NCFE), formerly a Dublin, Ohio healthcare financing company, during the approximate period 1999-2002. According to the SEC's Order, JPMorgan Chase and Bank One Corporation, which merged into JPMorgan Chase in 2004, at the instruction of NCFE, made transfers between reserve accounts in the programs that contradicted NCFE's representations to investors about how the reserve accounts would be used and contravened the requirements of the indentures governing the programs. In addition, the Order finds that pursuant to NCFE's instructions, JPMorgan Chase and Bank One made month-end transfers of huge amounts of reserve account funds and that these transfers helped NCFE mask substantial and growing reserve account shortfalls. Based on the above, the Order finds that JPMorgan Chase was a cause of NCFE's violations of Section 17(a)(3) of the Securities Act, requires JPMorgan Chase to cease and desist from committing or causing any violations and any future violations of Section 17(a)(3) of the Securities Act, and orders JPMorgan Chase to pay disgorgement of $1,286,808.82 and prejudgment interest of $711,335.76. JPMorgan Chase consented to the issuance of the Order without admitting or denying any of the findings therein. In the Matter of JPMorgan Chase & Co.

The Asset-Backed Securities Danger
NCFE was basically a financial "factor," advancing cash to hospitals, physicians, and other health-care facilities in exchange for their receivables—the delayed payments made by insurance companies and government agencies for patients' treatment. NCFE would place these receivables into pools, then issue derivative securities—known as asset-backed securities—backed by the expected insurance payments



All of the Debtors' outstanding bonds at this time consist of:
Amount Issuer Indenture Trustee
------ ------ -----------------
$924,995,000 NPF VI, Inc. JP Morgan Chase & Co.

$2,047,500,000 NPF XII, Inc. Bank One, N.A.

In papers filed with the Bankruptcy Court this week, the Company reports that, as of September 30, 2002, its books and records reflected approximately $3.8 billion in assets and approximately $3.6 billion in liabilities.



An Investor Report dated October 23, 2002, and delivered to Bank One reports that:

(a) NCFE held $851,993 in a Seller Credit Reserve Account as
of October 1, 2002, when there was supposed to be around
$145 million in that account on Oct. 1;

(b) NCFE held $498,321 in an Offset Reserve Account on
Oct. 1, when $44 million should have been on deposit; and

A little history of National Century Financial Enterprises (NCFE):
Prior to bankruptcy, NCFE provided financing to various healthcare providers through wholly-owned special-purpose vehicles,including NPF VI and NPF XII, which purchased discounted accounts receivable to be paid under third-party insurance programs. NPF VI and NPF XII financed the purchases of such receivables, primarily through private placements of notes.

National Century defendants to be sentenced in July
Monday, June 30, 2008 9:03 AM
By Jodi Andes

THE COLUMBUS DISPATCH
Five National Century defendants will soon find out the price they will pay for their roles in the nation's largest case of private-sector fraud.

And all this came from Lance Poulsen? He stated "These experiences prepared me well to begin my own insurance business in Columbus in 1986 called the Poulsen Group. And, as a result of that venture, NCFE became a reality in 1991."

TUESDAY, 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

COLUMBUS – A federal grand jury here today returned a 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 until it filed for bankruptcy in November, 2002.
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.

"All defendants, except for Happ..."
Who is James K Happ?

James K Happ has an interesting employment history.

SEPTEMBER 9, 2003
Source: ANNUAL MEETING OF STOCKHOLDERS-SEPTEMBER 9, 2003-Med Diversified Inc.
JAMES K. HAPP has served as chief executive officer of our subsidiary,
Tender Loving Care Health Care Services, Inc., since October 2002.
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., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997.

In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations. (All of which are in the Bankruptcy case in Tennessee) Who owned Columbia Homecare Group, Inc.?

"...illegally funding some firms ..." Which firms were illegally funded?

Which firms were illegally funded without buying eligible accounts receivable. That resulted in more than $1 billion? Which firms were these? Look at James K Happ! The last indicted executive?

Now this is the big news in this testimony:

'Terpening said it was because National Century couldn’t get a clean audit that it collapsed. Gibson answered that National Century fell apart because it had been illegally funding some firms without buying eligible accounts receivable. That resulted in more than $1 billion that couldn’t be accounted for, which is why Deloitte would not give the firm a clean audit, Gibson said. When that happened, she said, National Century went under because it couldn’t raise money from new investors to pay off old investors.

Terpening also asked Gibson about bank trustees who oversaw lock boxes National Century used to collect accounts receivable. After getting Gibson to admit that the trustees were a watchdog of sorts, he asked Gibson if those trustees had a responsibility to double check reports National Century sent to them.'

After telling jurors about her central role in an alleged $2.84 billion fraud and Lance Poulsen’s attempt at bribery in 2007, Sherry Gibson faced questions Tuesday from a defense attorney determined to pick her story apart.

Gibson, the former executive vice president of compliance at National Century Financial Enterprises Inc., sparred with William Terpening over her knowledge of the firm’s governing documents and Poulsen’s intentions when he contacted her through an intermediary in 2007.

Poulsen is the cofounder and former CEO of Dublin-based National Century, a health-care financing firm that collapsed into bankruptcy in 2002. He is standing trial in U.S. District Court in Columbus on charges he ran a fraud that resulted in billions of investor dollars going missing. He is accused of one count each of conspiracy, wire fraud and money laundering conspiracy, four counts of concealment of money laundering and six counts of securities fraud. He has pleaded not guilty to all the charges.

Earlier in the trial, Gibson told jurors that Poulsen had directed her to alter the company’s books and create fraudulent investor reports so National Century could hide the more than $1 billion in advances it had given to companies owned by Poulsen and others without collateral.

But on Tuesday, Terpening did his best to sow doubt in the minds of jurors. In one exchange, Terpening suggested that because Gibson hadn’t read all of National Century’s governing documents, she didn’t know for sure that the advances the company made were illegal. National Century purchased health-care providers’ accounts receivable in exchange for quick cash, then securitized the debt into AAA-rated bonds for investors.

In another exchange, Terpening attempted to pin the blame for National Century’s collapse on auditors who would not give the company a clean report. National Century needed clean audits on an annual basis from accounting firm Deloitte & Touche LLP if it wanted to issue new bonds. In 2002, however, Gibson said Deloitte would not give National Century a clean bill of health, which resulted in the firm’s unwinding.

Terpening said it was because National Century couldn’t get a clean audit that it collapsed. Gibson answered that National Century fell apart because it had been illegally funding some firms without buying eligible accounts receivable. That resulted in more than $1 billion that couldn’t be accounted for, which is why Deloitte would not give the firm a clean audit, Gibson said. When that happened, she said, National Century went under because it couldn’t raise money from new investors to pay off old investors.

Terpening also asked Gibson about bank trustees who oversaw lock boxes National Century used to collect accounts receivable. After getting Gibson to admit that the trustees were a watchdog of sorts, he asked Gibson if those trustees had a responsibility to double check reports National Century sent to them.Earlier in the day, Terpening also attacked Gibson on her contention that Poulsen attempted to bribe her into changing her testimony in the summer of 2007. Typical of the back-and-forth was this:

“It was very easy for you to act naturally while you were lying?” Terpening asked.

“No it was very hard,” Gibson said.

Or this:

“This was sort of joint effort ... to trap Mr. Poulsen, is that right?” Terpening asked.

“No,” Gibson answered.

Under earlier questioning from the government, Gibson told jurors that Poulsen used a mutual friend, Karl Demmler, as an intermediary. Demmler asked Gibson to have “amnesia” about allegedly fraudulent activity that took place at National Century in exchange for $1 million.

After Demmler extended the bribery offer, Gibson decided to work with the government to secretly record the bribery conversations in an effort to convict Poulsen and Demmler.

On cross examination, Terpening focused on the fact that Gibson never spoke with Poulsen or received any money from him.

“As I’ve previously stated, I never spoke with Mr. Poulsen directly,” Gibson said.

Thanks to testimony and cooperation from Gibson, Poulsen and Demmler were convicted in March by a separate jury of attempting to bribe Gibson.

The fraud trial continues Wednesday with the government expected to call its last witness, then rest its case.

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?

After the sale transaction between HCA and Medshares...

http://bankrupt.com/TCR_Public/040922.mbx

How is HCA still allowed to do business in our healthcare system? How could Medshares have utilized their provider number?

This allowance of HCA to use HCA's Medicare/Medicaid provider number questions a sale at all? Why has the Government allowed this? Why was HCA allowed todo business with the US Government? Why do they still own Medicare/Medicaid provider numbers?


"...After the sale transaction between HCA and Medshares,
Medshares continued to receive periodic interim payments
from Medicare under HCA's provider number."

The actual sale of HCA was never recorded properly with the SEC.I wonder why.Alledgedly, thesale was in October 1998. Funny,three months later:
"...On February 2, 1999, HCA made a demand on NCFE for payment under
the Collection Agreement.

"...As part of the Asset Purchase Agreement, Medshares agreed to purchase assets of certain home healthcare agencies owned by HCA and certain subsidiaries and
joint ventures, ..."

"JOINT VENTURES and subsidiaries"....hmmmmm

(c) The post-sale periodic interim payments After the sale transaction between HCA and Medshares,
Medshares continued to receive periodic interim payments
from Medicare under HCA's provider number. The Post-Sale
interim payments were then remitted to NCFE, which in turn
credited Medshares and advanced substantial funds to
Medshares to purchase additional accounts receivable.


HCA sued NCFE in Tennessee state court in a case
styled Columbia Healthcare Corp. v. Medshares Consolidated, Inc.,
et al.

On May 4, 1999, NCFE made a demand on HCA for the return of the
$1,305,137. HCA has never returned the money. NCFE filed
counterclaims in the Tennessee Litigation to recover the
$1,305,137 amount.

NATIONAL CENTURY: Trust Wants HCA Claim Reduced to $1,992,756


-------------------------------------------------------------
David A. Beck, Esq., at Jones Day, in Chicago, Illinois, relates
that in the Summer of 1998, Medshares Consolidated, Inc., entered
into an agreement to purchase certain home health agencies from
Columbia/HCA, now known as HCA, Inc. As part of the Asset
Purchase Agreement, Medshares agreed to purchase assets of certain
home healthcare agencies owned by HCA and certain subsidiaries and
joint ventures, which assets included accounts receivable
outstanding at the time of closing.

At the time of the sale transaction between Medshares and HCA, the
valuation of the purchase accounts receivable was uncertain.
Under the Medshares Purchase Agreement, Medshares agreed to
purchase the "Threshold Amount" of the accounts receivable. If
more than the Threshold Amount was collected, the excess funds
would be returned to HCA.

To facilitate the collection of the accounts receivable, Debtor
National Century Financial Enterprises, Inc., Medshares and HCA
entered into a Collection Agreement pursuant to which NCFE was to
receive payments on the accounts receivable. The collections were
then remitted to HCA to the extent they exceeded the Threshold
Amount.

The Collection Agreement defines the Threshold Amount as "sixty
percent (60%) of the Value of the Receivables." The Value of the
Receivables is defined as "the amount of the book value of the
Receivables, determined based upon a 150 day bad debt reserve
policy, adjusted by those reserves or assets which have the nature
of being a reserve or asset for a cost report purpose." The
Collection Agreement required NCFE to pay HCA money only if and as
the collections exceeded the Threshold Amount. The Collection
Agreement was to be in effect for a period of six months.

On February 2, 1999, HCA made a demand on NCFE for payment under
the Collection Agreement. Subsequently, Greg Gerkin, Assistant
Vice President of HCA, contacted NCFE to discuss HCA's demand for
payment. Mr. Gerkin asserted that NCFE owed HCA more than
$1 million and that HCA would sue NCFE if NCFE did not pay HCA
approximately $1.3 million.

Because NCFE had not yet received all of the patient-specific data
regarding the accounts receivable, which presumably was in HCA's
possession, NCFE was unable to perform a complete accounting of
the collections in its possession at that time. Nevertheless, on
March 5, 1999, NCFE remitted $1,305,137 to HCA. Notwithstanding
the payment, HCA sued NCFE in Tennessee state court in a case
styled Columbia Healthcare Corp. v. Medshares Consolidated, Inc.,
et al.

After the remittance of the $1,305,137 payment, NCFE received the
patient-specific data regarding the purchased accounts receivable
and then was in a position to complete a comprehensive accounting
of the collections received. In that accounting, NCFE determined
that the Threshold Amount had not been exceeded at that time and
that the $1,305,137 had been paid to HCA in error.

On May 4, 1999, NCFE made a demand on HCA for the return of the
$1,305,137. HCA has never returned the money. NCFE filed
counterclaims in the Tennessee Litigation to recover the
$1,305,137 amount.

HCA asserted Claim No. 121 for $10,611,222, broken into three
categories:

(a) The deposits that can be definitely linked to pre-
acquisition services

This component of the HCA Claim consists of accounts
receivable with definitive pre-acquisition dates of
service that were deposited into the NCFE lockboxes. HCA
asserts that it has a $2,368,113 claim for Definitive Pre-
Acquisition Receivables. However, NCFE collected only
$206,479, after the $1,305,137 payment is taken into
account, in Definitive Pre-Acquisition Receivables.
Accordingly, the HCA Claim with respect to the category
should be reduced to $206,479.

(b) The deposits for which documentation has not been
produced

HCA asserts that there is insufficient documentation to
identify $5.17 million in NCFE lockbox collections as pre-
or post-acquisition accounts receivable. HCA proposes to
divide the Unidentified Lockbox Collections between pre-
and post-acquisition accounts receivable by a procedure
conducted by Ernst & Young based on an estimation of the
allocation of pre- and post-acquisition accounts
receivable, resulting in an allocation of $2,765,275 to
pre-acquisition accounts receivable payable to HCA. In
addition, HCA asserts a claim for another $1,682,948 of
pre-sale accounts receivable received by NCFE through
"some mechanism other than the lockbox accounts."

Mr. Beck argues that HCA's $2,765,275 claim for
Unidentified Lockbox Collections greatly overstates the
amount that actually represents pre-acquisition
receivables. NCFE's analysis indicates that the actual
amount allocable to pre-acquisition accounts receivable is
$1,786,277. Accordingly, the portion of the HCA Claim
relating to the Unidentified Lockbox Collections should be
reduced to $1,786,277.

With respect to HCA's $1,682,948 claim for Unidentified
Collections, HCA does not provide any evidence that these
funds were received by NCFE. NCFE's books and records
also do not indicate the receipt of any of those funds.
Indeed, these amounts may have been paid directly to
Medshares, in which case HCA may have a claim against
Medshares. Because it did not receive these funds, Mr.
Beck contends that NCFE is under no obligation to pay the
Unidentified Collections to HCA.

(c) The post-sale periodic interim payments

After the sale transaction between HCA and Medshares,
Medshares continued to receive periodic interim payments
from Medicare under HCA's provider number. The Post-Sale
interim payments were then remitted to NCFE, which in turn
credited Medshares and advanced substantial funds to
Medshares to purchase additional accounts receivable.

HCA asserts a claim for $1,913,543 with respect to the
post-Sale interim payments. However, HCA provides no
basis for why the post-Sale interim payments give rise to
a claim against the Debtors' estates. Whether or not HCA
was or may be required to reimburse Medicare for these
funds, NCFE is not liable to HCA under the Collection
Agreement or otherwise with respect to these amounts.

HCA also asserted a claim for $1,881,343 in interest on
the amounts it alleges it is owed from the Debtors. HCA
has not provided any basis for asserting a claim for
interest against the Debtors.

Thus, the only portions of the HCA Claim that should be allowed
are reduced amounts for the Definitive Pre-Acquisition Receivables
for $206,479, and for the Unidentified Lockbox Collection for
$1,786,277.
Accordingly, the Unencumbered Assets Trust, the successor-in-
interest to certain rights and assets of National Century
Financial Enterprises, Inc., and its debtor-affiliates, asks the
U.S. Bankruptcy Court for the Southern District of Ohio to reduce
the HCA Claim from $10,611,222 to $1,992,756.

Headquartered in Dublin, Ohio, National Century Financial
Enterprises, Inc. -- http://www.ncfe.com/-- is the market leader
in healthcare finance focused on providing medical accounts
receivable financing to middle market healthcare providers. The
Company filed for Chapter 11 protection on November 18, 2002
(Bankr. S.D. Ohio Case No. 02-65235). The healthcare finance
company prosecuted its Fourth Amended Plan of Liquidation to
confirmation on April 16, 2004. Paul E. Harner, Esq., at Jones
Day represents the Debtors. (National Century Bankruptcy News,
Issue No. 46; Bankruptcy Creditors' Service, Inc., 215/945-7000)

Rainwater Back In Oil….

Rainwater Back In Oil….
October 9, 2008 ·
NEW YORK (Fortune) — Back in May, when oil was at $129 per barrel and rising, billionaire investor Richard Rainwater did something as prescient as it was shocking: He sold off all the energy stocks he owned.

Now he’s making another bold move: He’s betting on oil again.

A few weeks ago, when the price of oil tested a low near $90 per barrel for the first time in many months, Rainwater decided that he had found the right reentry point. “I reinvested back in the oil business, and it’s worked out really well for me,” he told me the other day. “I bought Exxon (XOM, Fortune 500) stock under $75. I bought ConocoPhillips (COP, Fortune 500) under $68. I bought Pioneer Natural Resources (PXD) under $50. I bought BP (BP). I bought Statoil. I made a big bet on the sector. I bought a lot of stocks back.”

Considering Rainwater’s incredible track record investing in the oil patch, that’s big news.

Rainwater first made his reputation by greatly multiplying the Texas oil fortune of the Bass brothers of Fort Worth, with big bets on everything from the resurrection of Disney to the boom in cell phones. After going out on his own in 1986, he made bundles for himself in hospitals (by putting together HCA) and real estate (by forming Crescent Real Estate Equities). Then, in 1997, when crude was priced below $20 per barrel, he decided to make a huge bet on oil. He put $100 million into stocks and $200 million into oil futures. The wager netted him billions in profits.

As Time’s Justin Fox reported in early June, Rainwater made the decision to close out his oil bet when the average price of gasoline passed $4 a gallon in the U.S. (and after he saw a reader poll on the Motley Fool Web site in which 77% of respondents said they were cutting down on gasoline consumption).

“I missed the very top by a lot,” Rainwater told me. “That’s okay. I’m always early. I sold after I got my first inclination that we had a problem with the demand side in America. I saw that we had a problem with the demand side and I sold out. But the stocks kept going up. And the price of oil kept going up. It went from $129 to $147 [on July 11]. But then it went from $147 back down to under $100, and that’s when I bought back in.”

Betting on increasing demand
Indeed, Rainwater is just as convinced as ever that oil prices are going higher in the long term. As he made clear in a Fortune story three years ago (”The Rainwater Prophecy“) he believes that the world is facing a future shaped by scarce natural resources. His decision to sell out in May was based on a belief that oil prices had gone too far too fast, not that the bull market for oil - or for that matter, commodities of all kinds - has ended.

“I think we’ll have a run on raw materials of all kinds because we’ve taught people all around the world how to play capitalism,” he says, “and all those people want to live like Americans. But when you look at us being [4.5%] of the population and using 25% of the resource base, that can’t go on. You can’t extrapolate that out around the globe without there being price pressures on the upside. So there are price pressures in food. There are price pressures on raw materials of all kinds, including oil.”

So with crude at around $100 and most of the stock market in chaos, he says oil companies look like a pretty good place for your money: “It’s much more positive than the rest of the environment.”

Given the volatility of the market right now, though, Rainwater is monitoring his new stock holdings closely. “I’ve already sold some of them,” he told me. “Not all of them, but I sold some because they went way back up. I’m just playing cycles here, and the cycles are really powerful and fast moving. I bought ConocoPhillips for $68 and sold it two days later for $78. I don’t think you can make that money in that short of a time unless you get lucky. And if I make that much money because I’m lucky, then I want out.”

Rainwater may be lucky. But when it comes to oil, his instincts are more than good.

Is the HEALTHCARE FRAUD, included in the Bailout?

Billions recouped in medical fraud

WASHINGTON — Whistle- blowers helped authorities recover at least $9.3 billion from health care providers accused of defrauding states and the federal government, according to an analysis of Justice Department records.

The department ramped up efforts in the 1990s to combat health care fraud by using private citizens with inside knowledge of wrongdoing. They now initiate more than 90 percent of the department's lawsuits focusing on health care fraud.

Whistle-blowers start cases by filing a sealed complaint in federal court. The department investigates the allegation and can intervene, assuming the lead role in the lawsuit. Whistle-blowers then get between 15 percent and 25 percent of the amount recovered.

Of the $9.3 billion recovered between 1996 and 2005, whistle-blowers got more than $1 billion, say analysts, writing for the Annals of Internal Medicine.

The analysts' findings are conservative. Information was available for only about three-quarters of the 379 cases reviewed. Also, some of the largest recoveries have taken place after the period reviewed.

For example, the study doesn't include the single largest settlement, worth $920 million, which came against Tenet Healthcare Corp., one of the nation's largest hospital chains, in 2006.

Still, the study highlights some important trends in health care fraud.

While the number of claims pursued has dropped in recent years, recovery amounts have soared because of a late addition to the cast of defendants — pharmaceutical manufacturers. Recoveries jumped from about $10 million a case in 2002 to $50 million by 2005.

Drugmakers are required to sell products to state Medicaid programs at the "best price" offered in the private marketplace, but the companies might artificially inflate the price, according to the report.

Another common scheme is to market drugs for uses not approved by the Food and Drug Administration.

The report's authors, Aaron S. Kesselheim of Brigham and Women's Hospital in Boston and David M. Studdert of the University of Melbourne in Australia, said data on hundreds of whistle-blower lawsuits should be researched to identify what types of allegations turn out to be legitimate and lead to recoveries so that the department can fast-track such cases.

By Kevin Freking
The Associated Press

Where will the 700 BILLION Dollar Bailout go?

HEALTHCARE?
Sun Healthcare Group Inc INSIDER TRADING

Last 10 Insider Actions for Sun Healthcare Group Inc
Date Name Shares Stock Transaction
08/25/2008 CHAUNCEY J HUNKER
Chief Compliance Officer 22,500 SUNH Exercise of Stock Options
at cost of $173,475.00

08/22/2008 RICHARD L PERANTON
President 4,934 SUNH Exercise of Stock Options
at cost of $40,508.13

08/22/2008 RICHARD L PERANTON
President 2,478 SUNH Exercise of Stock Options
at cost of $19,452.29

08/22/2008 RICHARD L PERANTON
President 84 SUNH Exercise of Stock Options
at cost of $647.63

08/22/2008 RICHARD L PERANTON
President 300 SUNH Open Market Sale
proceeds of $5,088.00

08/22/2008 RICHARD L PERANTON
President 1,703 SUNH Open Market Sale
proceeds of $28,865.84

08/22/2008 RICHARD L PERANTON
President 800 SUNH Open Market Sale
proceeds of $13,536.00

08/22/2008 RICHARD L PERANTON
President 2,800 SUNH Open Market Sale
proceeds of $47,348.00

08/22/2008 RICHARD L PERANTON
President 1,600 SUNH Open Market Sale
proceeds of $27,040.00

08/22/2008 RICHARD L PERANTON
President 2,797 SUNH Open Market Sale
proceeds of $46,989.59

Next Transactions


Copyright © 2006 FactSet Research Systems Inc. All rights reserved.

pushes back trial of former company executive James Happ to Dec. 1......

Why the PUSHBACK for James Happ?
That is the BILLIONS,UPON BILLIONS of Dollar Question!!
WAKE UP!!!



Events in $1.9 billion Ohio corporate fraud case
By The Associated Press

Published on Wednesday Aug 06, 2008

Some events in the history of the $1.9 billion fraud case against National Century Financial Enterprises, based in the Columbus suburb of Dublin:

1991: Businessman Lance Poulsen founds National Century, a health care financing company that provides financing to medical providers such as nursing homes and small hospitals by buying their short-term debt with money raised from investors.

1995-2002: According to federal prosecutors, the company provides unsecured loans to health care providers and misleads investors about the loans.

November 2002: The company declares bankruptcy after the FBI raids its offices as part of a government investigation.

August 2003: Sherry Gibson, a friend of Poulsen who rose through the company ranks from secretary to executive vice president of compliance, pleads guilty to conspiracy to commit wire and securities fraud.

July 2007: A federal grand jury indicts seven former executives of the company, including Poulsen, with multiple counts of conspiracy, wire and securities fraud and money laundering.

December 2007: A grand jury indicts Poulsen and acquaintance Karl Demmler on charges of trying to bribe Gibson to change her testimony at Poulsen's upcoming fraud trial.

January: U.S. District Court Judge Algenon Marbley grants Poulsen's request to have his own fraud trial in August.

February: Five remaining defendants go on trial before Marbley: Donald Ayers, James Dierker, Roger Faulkenberry, Rebecca Parrett and Randolph Speer.

Prosecutors allege the five engaged in a massive cover-up by lying to investors, fabricating data and loading false information onto a company computer system. Defendants said the government used incorrect definitions in looking at the company's books and took the company's activities out of context by showing jurors only a tiny slice of National Century's operations.

March 13: A jury finds all five defendants guilty. Marbley allows the five to remain free pending sentencing.

March 26: A jury convicts Poulsen and Demmler of conspiracy, witness tampering and obstruction of justice for trying to bribe Gibson.

March 27: Marbley issues an arrest warrant for Parrett after the government says she disappeared.

April 2: U.S. Marshals arrest Ayers, Dierker, Faulkenberry and Speer after the government says it uncovered a plot under which the four would flee to Aruba if convicted.

April 3: Marbley refuses to allow Dierker and Faulkenberry to go free pending a full hearing on the government's plot allegations.

April 4: Speer attorney files letter from Poulsen lawyer Pete Anderson adamantly denying Poulsen is source of plot allegation.

April 14: Marbley denies request by Ayers and other defendants to wear civilian clothes at hearing on plot allegations.

April 17: Marbley orders Dierker released on bond pending sentencing but says the three other defendants, whom he dubbed a "leadership cabal," must stay behind bars.

July 11: Marbley agrees to delay Poulsen's corporate fraud trial to Oct. 1. Marbley also pushes back trial of former company executive James Happ to Dec. 1.___

Since Poulsen's trial is now set to begin Oct. 1, it pushes the trial of James K. Happ, another former National Century executive, to Dec. 1.

Now why is this delay for Happ occurring? After the NOVEMBER election of course. Does any reporter really know where Happ is form or what his job at NCFE really was? If so, no one has yet to connect the dot!
Who does Happ really know? (Hint: Bush Connection)


The former CEO of National Century Financial Enterprises Inc. has successfully put off his trial on fraud-related charges by two months.

A federal judge ruled Friday that Lance Poulsen, the leader of the Dublin-based health-care financing company before it collapsed in 2002, will begin facing charges of securities fraud and conspiracy on Oct. 1 instead of Aug. 4. U.S. District Court Judge Algenon Marbley granted Poulsen's July 7 continuance request after Poulsen's attorneys argued they needed more time to review 40 boxes of documents the government is scheduled to make available between now and August.

"A two-month continuance will ensure that Poulsen has the time to obtain and review the documents that he plausibly claims are central to his theories of defense," Marbley wrote in his July 11 order.

Since Poulsen's trial is now set to begin Oct. 1, it pushes the trial of James K. Happ, another former National Century executive, to Dec. 1. Poulsen and Happ have both pleaded not guilty.

Poulsen, 65, co-founded National Century in 1991, building it into a major health-care financing company. It specialized in buying receivables from medical providers at a discount, which gave the health-care businesses the quick cash they needed. The receivables were then packaged as asset-backed bonds and sold to investors.

But National Century fell into Chapter 11 bankruptcy six years ago. The Justice Department alleged Poulsen and other executives ran a sophisticated Ponzi scheme that bilked investors out of nearly $2 billion. Poulsen pleaded not guilty to charges of conspiracy, securities fraud, wire fraud, money laundering conspiracy and concealment of money laundering.

Five other former National Century executives were found guilty in March of running a multiyear securities fraud at National Century. Poulsen was scheduled to go on trial with them, but his day in court on those charges was delayed because the government also accused him of trying to tamper with a witness.

Shortly after the March convictions of the five executives, Poulsen stood trial on the witness tampering charges. A jury found him and an associate, Karl Demmler, guilty of trying to bribe a government witness who is planning to testify against Poulsen in his securities fraud trial.

AMERICA's MOST WANTED? Think we need to dig deeper.....

This is not the FULL STORY EITHER!!!!


http://www.amw.com/fugitives/case.cfm?id=55267


Investors Bilked Out Of Billions In Corporate Collapse

Rebecca Parrett is a mother and grandmother. She has homes in both Arizona and Ohio.


View Larger From 1992 to 2002, federal authorities say that the executives of National Century Financial Enterprises played an elaborate shell game with billions of dollars of other people's money.

Cops say National Century built their business plan around a need in the health care financial community: using investors' capital, NCFE bought accounts receivables from hospitals and medical services firms for less than their collection value. This gave the medical community immediate cash flow and allowed for hospitals and such to continue to operate profitably without waiting for insurance claim settlements.

Then, NCFE made a profit when the insurance claim came in. At that time, NCFE divided the surplus between the investors and their company.

Prosecutors say it's a good business plan, but NCFE executives didn't follow it. They say they combined the theories of a Ponzi scheme, fraud, reporting false profits to the SEC and other watchdogs, and plain old embezzlement to keep the company and its executives afloat for ten years.

In 2002, an anonymous whistleblower contacted a bond rating firm to warn them of the company's precarious financial situation, and it resulted in a downgraded rating on the investment. Eventually, it caught the attention of the federal government, and in November 2002, the FBI raided the NCFE offices in suburban Dublin, Ohio. Two days, later the company filed for bankruptcy protection.


The FBI compares it to the more notorious collapses of publicly-held companies Enron and Worldcom.
Victims Widespread And Many

Parrett has a tattoo of a parrot on her upper left shoulder.
View Larger When salvage accountants came in to recover the company from what agents call "a collapsing house of cards," they only found around $900 million in assets but more than $3 billion in outstanding bonds.

The collapse of National Century Financial Enterprises meant 350 employees lost their jobs. It also meant that the 275 health care companies that they bought accounts receivables from also collapsed: those clients included hospitals and medical practices. For example, two hospitals in Washington, D.C. -- Greater Southeast Community Hospital and the Hadley Memorial Hospital -- were forced to declare bankruptcy in the fallout.

Some of the investors in NCFE who lost their money included a fund manager who handled the assets used for the pensions of New York City firefighters and police officers. The collapse of the company in 2002 crippled the pension funds just one year after the 9/11 attacks.

The FBI calls the NCFE collapse "the largest corporate fraud case involving a privately held company," and compares it to the more notorious collapses of the publicly-held companies Enron and Worldcom.

Other investors in NCFE included the state of Arizona and several cities.

Investigators say that NCFE executives knowingly deceived their investors with doctored reports and false assurances of incoming money.

A jury agreed. In March 2008, five of the NCFE executives were convicted on multiple fraud charges.


Marshals: Greedy Fraudster On The Run

Marshals say that Parrett is a woman of means and resources and could be anywhere.


View Larger After their convictions, an Ohio federal judge allowed the white-collar criminals to return to their homes to settle their affairs pending sentencing. They were released on their own recognizance, but ordered to wear an electronic monitoring device.

U.S. Marshals say one of the convicted executives, NCFE founder Rebecca Parrett, didn't show up for a scheduled appointment to be fitted with an ankle bracelet. Instead, they say she bolted, fleeing from her potential sentence of 75 years and a $2.5 million fine.

Parrett is a mother and grandmother, and she has residences in both Arizona and Ohio. Marshals say she is a woman of means because of her involvement with the criminal financing at NCFE.

In April 2008, Parrett's co-defendants in the case were re-arrested when the government uncovered what agents say was a plot to escape. Another executive still facing trial in the corruption and fraud allegedly told another inmate in his jail block that the NCFE executives were planning to abscond.

After their indictments, the government seized all of their passports, but the inmate told authorities he heard that they had figured out a way to get out of the country without them. He claimed that he was told that the white-collar criminals would take cruise ships to the Caribbean Islands and rendezvous in Aruba.

The scheme seemed plausible enough that the judge order three of the executives held until their sentencing.

Authorities still have not located Parrett, but U.S. Marshals are on the case. They are looking for any and all tips on her whereabouts.


Information valid as of last update.
Pretrial Release Violation, Phoenix, AZ; Mar 28, 2008

Just beginning to have "SUNSHINE" .....what really happened to heatlhcare ?

This is a good start, but the facts of the destruction in our Healthcare System in America has yet to be truly revealed.


From: http://www.americanchronicle.com/articles/59939

Nightline failed to report that similar suits are going on all over the country in an effort to stamp out the practice of Environmental Medicine. Case in point, the doctor treating over 400 Boeing employees for chemical injury in the state of Washington was sent threatening letters by the State Licensing Board in Washington.[1] John E. Bryson who sits on the board at Nightline's Disney/ABC also sits on the board at Boeing.

Round up the "good ol' boys" for another pass at genocide
So who else is around at Disney/ABC? Well, Richard Rainwater, a Texas billionaire owns a block of Disney/ABC. Rainwater is cofounder of the the largest for-profit hospital chain around, HCA/Healthcare, and an owner in a network of businesses which own and operate psychiatric hospitals.[2] He was also a partner with George W. Bush in ownership of the Texas Rangers until it was sold to Thomas Hicks.[3]

In 2000, HCA/Healthcare was the target of a federal government health fraud investigation, and subsequently paid hundreds of millions of dollars in civil penalties and criminal fraud charges. Want to hear one of the charges? It assured doctors joining its clinics that the company would use all their resources to ensure that any competing medical services failed.[4] (This needs deeper concentration)

The allergist used as a protagonist on Nightline's Show comes from University of Texas Southwestern Medical Center and if you go to ABC's website and look under 'health news', oddly enough, there are a preponderance of doctors from Southwestern Medical Center, many who malign alternative treatments for medical conditions. David A. Khan is there again, warning us in a video that acupuncture can have serious side effects.

After selling the Texas Rangers to Hicks, one of Bush's first acts as governor of Texas was to newly create a financial investment arm for the University of Texas and appoint Hicks as Chair. Now the public funds at U of T could be used to finance private projects. Nearly $9 million in state dollars from U of T were invested in Rainwater's holdings having to do with psychiatric care. So the University of Texas profits by increased use of psychiatric hospitals.[5][6]

Individual physicians working at University of Texas can also profit from increased use of drugs. CSPI's Integrity in Science Project currently lists 65 doctors at U of T who receive financial benefit from pharmaceutical companies. In addition, U of T Southwestern Medical Center lists 19 clinical trials for psychiatric drugs currently underway. Drug trials can be quite lucrative for participating physicians. The Wall Street Journal reported that doctors with academic affiliations have been paid as much as $30,000 per patient per drug trial, which translates to between $500,000 and a million dollars for participation in one study.[7] Doctors have also received five-figure consulting fees from pharmaceutical companies for nothing more than a commitment to prescribe the company's drugs.[8]

Moran failed to report on the broadcast that 16% of the U.S. population reports increased sensitivity to chemicals and of this, 3.5% have been diagnosed with life-altering Chemical Sensitivity.[9] A greater than average number of these people are living on the mid-coast of California where environmental conditions are supportive of recovery. Last year Bush declared a State of Emergency in this same area calling for monthly aerial spraying of pesticides over residential areas. This is life-threatening to those with Chemical Sensitivity. With over 6 million people total in the spray area, 210,000 disabled people will have to move or face severe consequences. Outraged citizen's groups have organized to resist the spraying which began last year in Santa Cruz and Monterey counties. What part of Monterey County escaped being sprayed with poison? Why Pebble Beach where Richard Rainwater owns a home.[10]

What else does the spraying in California accomplish beside disposing of the chemically sensitive at a faster rate? It destroys epidemiological evidence that avoidance of toxic chemicals results in healing of chronic medical conditions. And you thought you got on the clattering train of your own accord.

Another owner in Disney/ABC is the Bass family, notably Rainwater's friend Sid R. Bass, fellow Texas billionaire and heir to the Richardson oil and gas fortune. Bass also owns companies that manufacture medical equipment and a company that provides worker compensation insurance. Oil and gas drilling destroys environments that people need to have healthy lives. But if you also make money from people becoming ill, then that becomes an added benefit. Bass and his siblings also donate large sums to U of T.[11][12]

Who else stands to lose by recognition of chemical sensitivity? Several other board members at Disney/ABC do. Two Board members at ABC also sit on the board of Proctor and Gamble, manufacturer of a host of products for everyday household use that contain toxic chemicals. Additionally, over half of P&G's line of prescription drugs are used for conditions recognized as allergies by Environmental Medicine physicians. For example, P&G sells Enablex, prescribed for overactive bladder, a condition which is expected to generate prescription sales of $2.25 billion dollars a year.[13] Another ABC board member sits on Estee Lauder's (perfume) board, and yet another sits on the board at Chlorox.

By attempting to discredit Dr. Rea, a recognized authority on Chemical Sensitivity, businesses who stand to lose by recognition of this illness proactively protect their interests at the expense of the health of millions of Americans.

"Recognition of this syndrome as an illness, with potential to cause permanent disability, could involve changes in health care coverage and delivery, awarding of workers´ compensation benefits, and the regulation of chemicals in the workplace and the environment in the United States." (P. J. Sparks, et al. "Multiple Chemical Sensitivity: A Clinical Perspective"; Journal of Occupational Medicine [1994; 36: 718-737])