My comment to Tom Daschle's Op-Ed in WaPO

OBAMA says: The epitome of Fraud Waste and Abuse….

I SAY: Root that out and we can afford much more to spend!

PAY ATTENTION PEOPLE

Are you aware of the largest private financial fraud in our country's history that ended December 2008?

WHY?

It was not 'low income housing' mortgages; it was HEALTHCARE FINANCIAL FRAUD; the largest private "FINANCIAL INSTITUTION“in our country.

JULY 10, 2007 - SUPERSEDING INDICTMENT CHARGES EIGHT FORMER EXECUTIVES OF HEALTH CARE FINANCING COMPANY WITH CONSPIRACY, FRAUD, MONEY LAUNDERING

"This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America," said FBI Criminal Investigative Division. (Because it was private, no one has ever heard of this case, cried one prosecutor)

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.

Recall in 1998: On Sept 8, 1998 Standard and Poors downgraded the bonds of Charter/HCA …

The following is an excerpt from a 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006:
the three current or former Firm employees are sued in their roles as former members of NCFE's (National Century Financial Enterprises) board of directors

2002 FBI Raids NCFE headquarters in Dublin Ohio

Prior to the exposure of ‘some’ of the fraud at NCFE, the same entities were also involved in the "LARGEST PRIVATE" Bankruptcy Court in Memphis, TN in 1999. (Another “private’ company; remember, home health - which was struggling under the Balanced Budget Act of 1997)

Guess what this LARGEST PRIVATE Company filing bankruptcy in Tennessee was--- HOME HEALTHCARE!

The SEC NEVER received documentation of the publicly traded companies allegedly selling or divesting their home health units to this private company.
Six months or so later after the acquisition of all the losers, this private healthcare company filing bankruptcy in Tennessee held much of if not ALL of Columbia/HCA Homecare’s losing' assets, home health- financed by the largest fraudulent private "FINANCIAL INSTITUTION “in our country, NCFE.

Tennessee Bankruptcy court transcripts reveal lawyers crying Fraud only to be reprimanded by the appointed corporate bankruptcy judge. She forbade the lawyers from using the ‘F’ (fraud) word in her court. (Got to love those appointed judges) Guess what tool was used in this corporate bankruptcy court in TN? DIP FINANCE TOOL.


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 CEO and ONE EXECUTIVE –JAMES K HAPP await trial? JAMES K HAPP –LAST PERSON ON TRIAL—

WHY?
Who is James K Happ? Where was James K Happ when Richard Scott was at Columbia in 1997?

In 1997 James K Happ was the CFO 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” (SEC Form)


Let me remind you the size and TOO BIG TO FAIL mentality for HCA-Hospital Corporation of America is in Nashville, TN. Remember Senator Bill Frist- Leader of the Senate- HOLY COW!

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.

(Just like Madoff’s sons never signed anything therefore they are not involved.)

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."

“Federal prosecutors had not done their job” in 2008?

To be continued…..

Bigger than ENRON JUDGES....OHIO and TENNESSEE

What do you want from Southern Ohio?
Really?
You have the Bankruptcy Judge in Memphis telling lawyers not to sue the 'F'raud worj in her court amidst of the NCFE FRUADULENT CLAIMS,,,,why would this judge in SOUTHERN Ohio be any different?


Ex-National Century Exec Drops Claims V. JPMorgan
Law360, New York (March 09, 2009) -- A judge has signed off on the stipulated dismissal of crossclaims brought by a former National Century Financial Enterprises Inc. executive against JPMorgan Chase & Co. and two of the company's former outside directors in multidistrict litigation over the health care lender's multibillion-dollar collapse.

Judge James L. Graham of the U.S. District Court for the Southern District of Ohio approved the dismissal with prejudice Friday and brought the crossclaims by former National Century Chief...

A Hospital Giant Comes to Town, Bringing Change...1993 Richard Scott & James K Happ

A Hospital Giant Comes to Town, Bringing Change
By KATHRYN JONES
Published: Sunday, November 21, 1993
WHEN Richard L. Scott rolled into town three years ago and bought two small, down-at-the-heels hospitals, he and his Columbia Healthcare Corporation made quite an impression on the local health care industry.

"Everybody thought they were crazy," said Dr. Donald Huge, medical director for Sanus/New York Life Health Plan, one of Houston's largest health maintenance organizations. "No one could figure out why they would want hospitals like that." Columbia was largely ignored.

But Columbia kept buying hospitals, here and elsewhere. In September Columbia put up $3.4 billion to acquire Galen Health Care Inc., a 73-hospital chain spun off by Humana Inc. Then last month Columbia announced a merger with the HCA-Hospital Corporation of America that will create the world's largest investor-owned hospital group.

Now, it is hard to ignore Columbia. The HCA merger, if approved, will make Columbia the largest hospital chain in Houston, with 10 hospitals and 2,800 beds, or about 16 percent of the market. It seems everyone is calling Columbia's Houston office, where Jay Grinney, president of the Southwest division, plots Columbia's acquisitions with big red dots on a wall map. Dr. Huge, whose company has been expanding its network of doctors and hospitals, was one of those callers after the Galen merger. "I called Jay and said, 'Hey, we need to have lunch, old buddy.' I was going to need him desperately."

If Rick Scott has his way, the for-profit, publicly traded Columbia will become an equally formidable presence in many other cities, including Atlanta, Chicago and Kansas City. (The company is already strong in Miami and El Paso; it has no hospitals in the Northeast.) For those cities and many others where the hospital industry is fast consolidating, Mr. Scott's performance in Houston could be a study of what happens when a powerful force like Columbia comes to town.

Mr. Scott's guiding philosophy is that bigger is better. In Houston, as in other cities, Columbia has bought hospitals and consolidated overlapping operations like marketing and cardiac treatment to save millions of dollars in overhead, and it has done this with only about 25 layoffs. Using its size, it has negotiated volume discounts from medical-supply companies for everything from surgical masks to operating-room equipment.

To fill more of its beds, it invests heavily in new medical services and better equipment to make the hospitals more attractive to health plans, patients and physicians. It also woos physicians with equity stakes.

The formula has worked for Columbia. All of its hospitals here and elsewhere are profitable. But while Columbia has lowered operating costs, its effect on the prices patients and their insurers pay is still uncertain, although there are some promising signs.

Analysts said the HCA merger will give Columbia the size to bargain with the big buyers of health services envisioned under the Clinton Administration's health reform plan.

But some health care industry experts worry that as the hospital industry consolidates, with Columbia and big competitors gaining strength in markets like Houston, these companies could someday be in a powerful position to raise prices.

Columbia, based in Louisville, was founded in 1987 by Mr. Scott, then a Dallas attorney and now chairman and chief executive, and Richard Rainwater, a Fort Worth financier who made his fortune cutting deals for Sid Bass, one of the billionaire Bass brothers.

After early successes in El Paso and Miami-Fort Lauderdale, the company moved into Houston. In addition to acquiring hospitals, Columbia has added a residential mental health center for adolescents and children. The company has also expanded or started programs including rehabilitation services, inpatient and outpatient psychiatric programs, outpatient diagnostic services, and nursing-home and home-health-care services. A recent affiliation with Medical Care America Inc. will add outpatient surgery and home-infusion care to the list.

"I want to make sure we have all the different systems that managed care needs," Mr. Scott said.

The HCA merger, which still must be approved by shareholders and regulators, would give Columbia four more west side hospitals and 1,200 more beds in Houston. Columbia closed some hospitals in El Paso and Miami; it has not done so here.

Health-care industry executives said Columbia's biggest impact has been to speed an industry consolidation in Houston. Its closest competitor, Memorial Healthcare System, last month announced an agreement that will give it more than 2,000 beds. Other hospitals are also making acquisitions and forming networks with a variety of services and doctors. And many people here say it's just a matter of time before some hospitals close.

Columbia would like to acquire even more hospitals in Houston, Mr. Scott said. It wants 25 percent to 35 percent of the market.

THE Houston area has about 100 hospitals, many owned by several companies -- Columbia, Memorial, American Medical International, Healthtrust and Epic Healthcare Group -- and others independent.

But some who watch the health care business said they are concerned that Columbia and Memorial are emerging as the two dominant hospital companies in Houston. They worry that Columbia particularly, because of its deep pockets, will gain too much power and then dictate prices.

Merrill Matthews, health policy director of the not-for-profit National Center for Policy Analysis in Dallas, compared this business to the military industry. "You could get something like the Pentagon, with a few major suppliers like a Lockheed or a General Dynamics," he said. "Nobody argues that the stuff they sell is cheap. And the little guy, where much of the innovation comes from, gets squeezed out."

MR. Scott recognizes such criticism. "I think that's a concern. I don't think it's good in any business for anyone to have a monopoly. On the other hand, you need to have size to get costs down. The truth is, for patients, physicians and whoever the payer is, I think size is very positive."

With all its hospitals profitable, Columbia, whose shares are traded on the New York Stock Exchange, earned $25.9 million, or $1.18 a share, on revenues of $819.3 million last year. In 1991, it earned $15.2 million, or 92 cents a share, on revenues of $499.4 million. However, the company said it lost $115 million in this year's third quarter after taking charges for the Galen acquisition. Nevertheless, for the year it is expected to earn $1.95 per share, according to analysts. (The HCA merger, expected to be completed in February, would result in an entity called Columbia/HCA Healthcare Corporation, with annual revenues of more than $10 billion.)

Columbia could not show how its presence has affected the prices paid by patients and insurers in Houston. But Mr. Scott said prices are generally falling. Others in the Houston health-care industry said it was too early to tell. But some have seen some good signs. "We've already seen some improvement in quoted rates to us on a per-diem basis in contracts," Dr. Huge said.

Operating expenses per patient day at Columbia's Houston hospitals fell from $801 in 1990 to $794.12 last year. Company officials pointed to several examples of how they have made hospitals more efficient and lowered operating costs.

Columbia said it immediately cut $1.5 million in overhead from its initial acquisitions in Houston. The company said it is also filling more beds. For example, the average daily number of patients in beds at the Sam Houston hospital has almost tripled to 125 from 45 in 1990, Mr. Grinney said. The company said it is attracting more patients with improvements to its hospitals and expanded services.

Columbia's size -- 94 hospitals before the HCA merger, 190 hospitals in 26 states after it -- gives it leverage with big national suppliers. Mr. Scott said Columbia has cut its hospital supply costs in Houston by more than 15 percent.

It has also eliminated some duplication of services. For example, Rosewood Medical Center had planned an $8 million expansion that would have included a comprehensive heart program. But Spring Branch, only 10 to 15 minutes away, already had such a program. Columbia's solution was to set up an outpatient cardiac catheterization unit at Rosewood; more serious cases go to the Spring Branch hospital.

"Instead of assuming that every facility has to be completely equipped, we look at it on a systemwide basis," Mr. Grinney said.

Terry Goss, executive director of the Durham Medical Center, a multi-specialty group with 17 physicians that has aligned with Columbia, recalled how doctors' complaints about outdated CAT-scan, operating-room and intensive-care-unit equipment had been ignored by the previous administration at the Heights Hospital. But when doctors raised the issue with Columbia executives, they ordered the equipment. Columbia also helped negotiate and finance a building for Durham in a good location.

And when negotiating a contract with a health plan, Columbia offers a medical network that includes not only its facilities but also the services of certain doctors. "They're bringing business to the physicians who are in independent practice," said Diane Love, an associate professor of health care administration at the University of Houston at Clear Lake City.

SOME physicians are concerned that Columbia is getting so large that it will control the local market and they won't have a say, equity stake or not. And some competitors played down Columbia's impact in a market where a growing number of services take place outside the hospital.

"We're not doing anything differently since they've been in the market," said W. Randolph Smith, executive vice president of operations at American Medical.

There will be losers. Mr. Scott said he expects 30 percent of the nation's hospitals to close in five years. Some will be in Houston.

"Slowly, they're going to go out of business," he said. "It sounds bad, but it will lower health care costs in the city." SHOULD DOCTORS OWN HOSPITALS?

WHEN the Columbia Healthcare Corporation comes to town, it woos local physicians with promises of an ownership stake in its hospitals.

But the equity stakes, which have become a cornerstone of Columbia's strategy for moving into new markets, are increasingly under fire.

Critics, including some lawmakers, contend that such business relationships are a blatant conflict because they could encourage physicians to order unnecessary treatments and jack up patient bills at hospitals where they have a financial interest.

But Columbia officials said that selling partnerships to a hospital's staff physicians helps reduce the cost of providing care by focusing physicians on the bottom line and giving them a voice in a hospital's operation.Columbia officials said they are well within current Federal guidelines for physician ownership of facilities. The guidelines give a "safe harbor" to organizations with physician ownership of 40 percent or less.

Typically, Columbia limits its aggregate physician ownership in its local hospitals to 30 percent, said Jay Grinney, president of Columbia's southwest division.

In Houston, 130 physicians own 11.5 percent of the hospitals, and that percentage will probably grow as more doctors become interested in investing.

The original partnership units sold for $15,000 each.

Photos: Jay Grinney of Columbia Healthcare plots the company's acquisitions in Houston on a wall map. (F. Carter Smith for The New York Times); Richard Scott, left, visits Willie Burton, a patient in Louisville. (Jackie Wallace for The New York Times)

By Dennis Jay
Jan 2, 2009, 4:18 PM EST

Let’s make 2009 the year we finally turn the corner on insurance fraud and truly make a difference in curbing this crime — and in the process, helping to keep insurance affordable and making the insurance system fairer for everyone.

To that end, here are a few New Year’s resolutions for the fraud-fighting community:

Insurers: Resolve to adopt a zero-tolerance attitude towards fraud. Provide adequate resources to your SIUs and recognize that a down economy is exactly the wrong time to cut back on anti-fraud activities;

Fraud bureaus: Resolve to become more efficient and adopt more strategies to deter fraud, including publicizing arrests and convictions;

Regulators: Resolve to seek greater uniformity in anti-fraud regulations from state to state, and ensure all insurers comply with anti-fraud requirements;

Prosecutors: Resolve to find creative ways to accept more fraud cases, especially the difficult ones.

State legislators: Resolve to give fraud-fighters more tools by enacting needed fraud legislation, and that goes double for lawmakers in Oregon, Virginia and Alabama, the last states that lack even a basic insurance fraud statutue;

President-elect Obama and Congress: Resolve to include strong anti-fraud provisions in any new healthcare initiatives;

Consumers: Resolve to resist the temptation to inflate insurance claims; encourage your friends, family and co-workers to stay honest.

And lastly, the coalition: Resolve to strengthen partnerships with all constituents groups, including other anti-fraud organizations, and to have a measurable impact on reducing insurance fraud.

May you stick to all of your resolutions and have a successful 2009!

James K. Happ...Before joining National Century, Happ had worked at a health-care company that received millions of dollars in unmerited advances...

...Happ's motive couldn't be about money, Gillen said: He earned more at his employment before and after working at National Century...

Before joining National Century, Happ had worked at a health-care company that received millions of dollars in unmerited advances from National Century.

GUESS WHO OWNED THAT COMPANY? Columbia Homecare Group,Inc. Fort Worth Texas. But one needs to go look at the Largest Bankruptcy Filed July 1999 in Tennessee, just months prior to the FBI raid in Ohio !


Ten executives of the defunct health-care lender have been convicted for their roles in a multibillion-dollar fraud that bankrupted health-care companies and hurt investors, including pension funds, across the country.


Jury begins deliberating fate of last of 11 National Century execs
Monday, December 15, 2008 7:54 PM
By Jodi Andes

THE COLUMBUS DISPATCH
Closing arguments today in federal court were the beginning of the end for trials involving executives in the nation's largest case of fraud by a privately held company.

The criminal cases against officials of National Century Financial Enterprises started when the company collapsed into bankruptcy more than six years ago.

James K. Happ, 48, who oversaw the purchase of accounts receivable at the Dublin-based company, is charged with fraud tied to the company's 2002 collapse. He is the last of 11 executives charged with fraud to have his case go through the court.

The jury is expected to begin deliberations first thing Tuesday.

Before joining National Century, Happ had worked at a health-care company that received millions of dollars in unmerited advances from National Century."He knew about the problems at NCFE before he joined and did it anyway. This is a man who joined with eyes wide open," federal prosecutor N. Nathan Dimock said in closing arguments.

National Century bought accounts receivable from health-care providers and collected them for a fee. Cash to buy the accounts receivable was generated by the sale of bonds to investors. But investors were never told about money being given to health-care providers without getting the accounts receivable in return, prosecutors have alleged.

Investors should have known about the advances because it was disclosed in the company's financial documents, said Happ's defense attorney, Craig A. Gillen.

Gillen stood beside a large numeral "0" placed on an easel. He said the zero represented the amount of false statements Happ gave to investors, the number of financial reports he falsified and the number of times he lied to federal investigators.

"Jim Happ didn't commit any crime. Didn't join any conspiracy. He didn't have any motive to," Gillen said.

Federal prosecutors Dimock and Doug Squires have said Happ had the motive to further the conspiracy because his and others' quarterly bonuses grew with each advance to health-care providers.

But Happ's motive couldn't be about money, Gillen said: He earned more at his employment before and after working at National Century.

Happ's attorneys did not put any witnesses on the stand, nor did he testify in the 11-day trial.

Happ, 48, faces charges of conspiracy, money-laundering conspiracy and three counts of wire fraud in U.S. District Court in Columbus.

Ten executives of the defunct health-care lender have been convicted for their roles in a multibillion-dollar fraud that bankrupted health-care companies and hurt investors, including pension funds, across the country.
Six of those convicted have been sentenced to terms ranging from four to 15 years in prison. One, Rebecca S. Parrett, remains at large, having taken off while awaiting sentencing. Former CEO Lance K. Poulsen and two others await sentencing.

jandes@dispatch.com

“Money laundering is my business on private contracts,” Demmler said. “It’s nobody’s business but mine.”

Note, the $3Billion dollar figure is just what they can prove!
This is BIGGER THAN ENRON!!! Who is following the real money? How much was given to HCA & Family?


Lance Poulsen allegedly offered a potential witness against him up to $2 million to change her testimony, a riveted jury heard Monday morning.

Backed up by secretly recorded tapes of their conversations, Sherry Gibson, a former executive vice president of National Century Financial Enterprises Inc., told jurors that her former boss used an intermediary to try to convince her to lie during Poulsen’s trial on fraud charges. Gibson is the government’s star witness in its case against Poulsen, the former CEO and part-owner of the Dublin-based firm.

Gibson worked her way up from receptionist to senior executive a National Century, becoming a linchpin in the nearly decade-long fraud the government has alleged went on at the company. She told a jury Monday that she participated in what was essentially a massive Ponzi scheme at the company. She pleaded guilty in 2003 to conspiracy to commit securities fraud.

“I pled guilty because I was guilty,” Gibson said. “... I entered a plea agreement to minimize my exposure to prison.”

Gibson spent three years in prison, repaid $420,000 to the government and agreed to cooperate with the Justice Department’s investigation into National Century.

While in prison, Gibson said Karl Demmler, a mutual friend of hers and Poulsen’s, asked her if she would be interested in recovering the money she had paid to the government. Gibson told the jury that she was more interested in moving on with her life.

“If there was a way to reclaim my assets without nullifying, voiding or in any way imperiling my plea agreement, that would be something to check out,” Gibson read from a Jan. 25, 2007, letter she wrote to Demmler. “I have no intention of starting a fight over my current sentence because the alternative is much worse.”

Thinking that the matter was dropped, Gibson told the jury she then met Demmler for dinner after she got out of prison. But Demmler brought up the subject again, she said. Demmler told her that Poulsen thought the government had given Gibson a “raw deal,” she said, and Poulsen wanted to make Gibson “whole.”

“I was somewhat taken aback that I had just been offered a bribe and changed the subject,” Gibson said.

Gibson said she told her attorney about the offer the next day. After a few days, Gibson made an agreement with the government to record any conversations she had with Demmler.

Prosecutors played for the jury the first conversation Gibson recorded between herself and Demmler.

“I told him you would want at least a million bucks,” the jury heard Demmler say. In that same conversation, Demmler also told Gibson that for a 10 percent fee, he would manage all aspects of the money exchange for her.

“Money laundering is my business on private contracts,” Demmler said. “It’s nobody’s business but mine.”

Between June and October 2007, Gibson said she met with Demmler eight times about a possible bribe, as well as receiving several voice messages from him. In each of the recorded conversations, Demmler told Gibson that he was in touch with Poulsen and attempting to work out payments for her.

In one recorded conversation, Demmler even played a voice message Poulsen had left him that Gibson alleged referred to the bribery attempt.

“There are some ways for our friend to recover our friend’s losses,” Poulsen said in the message he left with Demmler.

Under cross-examination, Gibson admitted to Poulsen’s attorney William Terpening that she never spoke with Poulsen directly. Gibson also said she never met with Pouslen or received any money from him.

Terpening also suggested that Demmler’s reliability was questionable by asking Gibson what she knew about his political views. Gibson admitted that Demmler had some “interesting” ideas, including that any federal government taxation is illegal.

When Terpening suggested that Gibson’s only contact with Poulsen in 2007 was through a “crazy” man, Gibson responded that her contact was through an “intermediary” that was well known to both her and Pouslen. She said she couldn’t comment on Demmler’s psychological health because she is not a doctor.

Both Demmler and Poulsen were found guilty in March by a separate jury of attempting to bribe Gibson.

Poulsen is standing trial in U.S. District Court in Columbus on charges he ran a fraud that resulted in as much as $2.84 billion in investor funds going missing after National Century collapsed into bankruptcy in 2002. Poulsen 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.

Defense attorneys are expected to continue their cross examination of Gibson on Tuesday.

"...attorney’s conflict of interest. Haller was forced to recuse himself from the cross-examination of Porter because ....

"...attorney’s conflict of interest. Haller was forced to recuse himself from the cross-examination of Porter because he once represented Home Care Concepts."
Makes you wonder if there are tooooo many conflicts of interest!!

Will we ever see 'ALL' of the "...1 million electronic transactions ..."


Tuesday, October 7, 2008 - 6:20 PM EDT
Witnesses detail overfunding from National Century
Business First of Columbus - by Kevin Kemper

Over four years, National Century Financial Enterprises Inc. made illegal advances of more than $2 billion to six companies partially owned by Lance Poulsen, jurors in the former CEO’s fraud trial heard Tuesday.

Jeffrey Williams, an FBI agent who investigates white-collar crimes, told jurors an analysis of more than 1 million electronic transactions found Dublin-based National Century advanced $2.19 billion to the companies from 1999 and 2002. All six of the companies were partially owned by Poulsen, National Century’s founder and co-owner.

Poulsen was indicted on charges he ran a nearly decade-long fraud at National Century that resulted in $2.84 billion in investor funds going missing after the financing company collapsed into bankruptcy in 2002. He is standing trial in U.S. District Court in Columbus on charges of wire fraud, securities fraud and conspiracy among others.

Poulsen has pleaded not guilty to the charges.

Williams’ testimony was the capper to testimony from executives whose companies allegedly received the illegal advances.

Bryan Weiss, former CFO of Los Angeles-based MediManagement, testified Tuesday that his company depended on consistent overfunding from National Century to stay in business. Over the years National Century overfunded MediManagement, a hospital management business it owned, to tune of more than $100 million, Weiss said.

When National Century went bankrupt, MediManagement had to divert about $100,000 owed to National Century and its investors into MediManagement accounts to stay in business.

National Century was a financier of last resort for medical companies such as MediManagement, purchasing accounts receivable in exchange for quick cash that a health-care provider could use to pay its bills. National Century would then package the receivables into bonds and sell them to investors.

In the case of MediManagement, however, National Century also gave the company money to maintain operations, even though Weiss said MediManagement didn’t have sufficient receivables to meet its operating needs. But when National Century funded MediManagement beyond the value of its receivables, it violated securities laws because it broke promises to investors to only purchase accounts receivable, the government has alleged.

Defense lawyer John Haller attempted to show the jury that Weiss and MediManagement were at fault, not Poulsen.

“You took money that didn’t belong to you?” Haller asked.

“Yes,” Weiss answered.

“You stole, didn’t you Mr. Weiss?” Haller asked again.

Weiss said diverting the funds was the decision of MediManagement’s CEO.

Haller also asked Weiss if MediManagement was charged by the government with diverting money. Weiss answered that it wasn’t and that investigators never asked about diversions in interviews they conducted with him.

Craig Porter also testified Tuesday that his company was overfunded by National Century. Porter told jurors he was once CEO of Home Care Concepts of America Inc., which like MediManagement was owned in part by Poulsen and convicted accomplices Donald Ayers and Rebecca Parrett, also co-owners of National Century.

By the time Home Care Concepts went out of business in 2000, Porter testified, National Century had sent more than $300 million in overfunding to the company. Porter said he wasn’t aware of money diverted from Home Care Concepts to Poulsen.

Porter almost didn’t testify due to an attorney’s conflict of interest. Haller was forced to recuse himself from the cross-examination of Porter because he once represented Home Care Concepts. U.S. District Judge Algenon Marbley ruled Haller couldn’t use information gained during his representation of Home Care Concepts against Porter in his questioning and then directed Peter Anderson, another of Poulsen’s attorneys, to fill in for Haller.

Poulsen said he felt his rights weren’t being protected.

“I’m sure as heck not going to stand here and have my defense litigated away,” he told Marbley.

Marbley responded that because Poulsen has employed three lawyers, his rights were protected.

Where is James K Happ? The ex-employee of Richard Rainwater's?

Trust must be earned and Truth must be told for any bailout or rescue plan to work in any capacity intended.

"re-regulate the industry along the lines of Glass-Steagall" but what happened shortly after this de-regulation? We need to get to the root of this problem! And this is a start.

It is a leap of faith that any one citizen must have in their government. However, due to the escalation of the 'Newt Gingrich' style of politics, which has dummied down the nation by dividing, will be the demise of our country.

We cannot trust the government to tell us the truth. This is the reason we will not get out of this easily; because we cannot understand how we got here. We export financial services. That is what American exports and the American people cannot understand that.

Thus, it is hard to listen, especially when we are so uninformed and uneducated. Our country has become a

financial service export leader; that is what our economy and ultimately, our country has transformed into. We must begin to understand the true 'value' of one's country's currency. We need to get back to the basics.

If we are to believe the fact that this is a 'sub-prime' mortgage-related Securities then we will never get to the root of the real truth.

Bailout Begins With Healthcare in America

In 1999, the 'Largest Bankruptcy case' in the history of Western Tennessee Bankruptcy Court in Memphis, Tennessee was filed. (Not Nashville, where HCA is located)

In 2000, in Dublin Ohio, FBI raided offices of the largest private financial lender to 'failing healthcare companies'.

NCFE, National Century Financial Enterprises, Inc., the 'LARGEST' private financial lender to 'failing healthcare companies'. Federal Prosecutors in Ohio state, this case is the one that "no one has heard of ". I wonder why?

Federal Prosecutors in Columbus, Ohio proclaim this case is 'larger than Enron' and still 'no one has heard of' or is paying attention.

Currently, there are two people that have yet to go on trial in the NCFE, 'larger than Enron' case: the CEO, scheduled this coming week October 6, 2008; but most interesting is the last, ex-Executive, James K Happ. Why last? The ex-executive will go last, after everyone else involved has been sentenced, one of which has already completed her sentence and is now free.

This ex-executive, James K Happ, was a prior employee of Richard Rainwater, the notorious oilman.

And we want to place the financial crisis to 'low-income housing'?

The smaller companies didn't have to wait for insurance reimbursement, and National Century kept a fee or percentage of what was collected.

National Century was founded in 1991 to offer financing to small hospitals, clinics, nursing homes and other health-care providers. National Century agreed to buy the providers' debt, or accounts receivable, and give them cash to cover expenses. The smaller companies didn't have to wait for insurance reimbursement, and National Century kept a fee or percentage of what was collected. When National Century went under, at least 275 health-care companies collapsed in its wake.


National Century agreed to buy the providers' debt, or accounts receivable, and give them cash to cover expenses. The smaller companies didn't have to wait for insurance reimbursement, and National Century kept a fee or percentage of what was collected. When National Century went under, at least 275 health-care companies collapsed in its wake.



National century trial
Money questions upset CEO, ex-director testifies
Friday, October 3, 2008 3:10 AM
By Jodi Andes

THE COLUMBUS DISPATCH
One National Century employee said he learned quickly that Chief Executive Lance K. Poulsen did not like to have his company's business practices questioned.

It was in January 1997, William Parizek said, when Poulsen called him. Poulsen, who had named Parizek director of corporate finance for National Century Financial Enterprises two months earlier, wanted to know why Parizek was asking colleagues how much money clients had been loaned.

National Century had become a financing giant by buying accounts receivable from health-care providers such as small hospitals and nursing homes, and collecting the money for a fee. In return, the providers didn't have to wait months for insurance and government medical payments.

Parizek said he was preparing presentations for potential investors in National Century when he noticed that some providers had been given loans "two and three times" what their accounts receivable would cover.

So he began asking more questions. That's when he got a call from Poulsen, Parizek testified yesterday, the second day of Poulsen's trial in U.S. District Court in Columbus.

He is accused of securities and wire fraud and money laundering. He was convicted in March of witness tampering and obstruction of justice for trying to bribe the government's key witness in the fraud case.

Poulsen told his underling he had no business asking those questions and to keep quiet with his "holier-than-thou morality," Parizek said.

Parizek said his attorney negotiated a $50,000 severance package after he resigned, on condition that Parizek not talk about the company's practices.

He hadn't mentioned anything to anybody, he said, until the FBI called.

In all, federal officials have charged 11 National Century executives with fraud, tied to the company's November 2002 collapse that cost investors more than $1.9 billion.

Prosecutors contend that the company used investors' money to offer risky loans to health-care companies in which National Century executives were stakeholders. It was "an outright misuse of investor money," a scheme Poulsen masterminded from "Day One," Assistant U.S. Attorney Doug Squires said.

The defense questioned how such a fraud could have been carried out when some of the nation's most elite banks, rating agencies and auditing firms were constantly watching National Century.

"Things did fall apart, and everyone is just looking for someone to blame," defense attorney William Terpening posed to jurors in his opening statements.

Even investors should have known the risks, Terpening said.

"The bond-holders made mistakes," he said. "If the bond-holders didn't carefully look at NCFE documents and ask questions, then shame on them."

Five other National Century executives have been convicted of fraud in the company's demise and sentenced to prison terms ranging from five to 15 years.

jandes@dispatch.com

The case in brief
• Lance K. Poulsen, former chief executive of National Century Financial Enterprises, is on trial in federal court on fraud and money-laundering charges connected to the collapse of the former health-care financing giant. Investors lost more than $1.9 billion when the Dublin-based company filed for bankruptcy in 2002 in the nation's largest case of private-sector fraud.

• This is Poulsen's second trial this year. He was sentenced in August to 10 years in prison for obstruction of justice and witness tampering for trying to get a key government witness to fake amnesia.

• Five former executives of National Century were convicted on fraud charges in March. Four have pleaded guilty. One has yet to stand trial.

• National Century was founded in 1991 to offer financing to small hospitals, clinics, nursing homes and other health-care providers. National Century agreed to buy the providers' debt, or accounts receivable, and give them cash to cover expenses. The smaller companies didn't have to wait for insurance reimbursement, and National Century kept a fee or percentage of what was collected. When National Century went under, at least 275 health-care companies collapsed in its wake.

Credit Suisse Boston which would help sell the bonds, about his employer:National Century was also out of reserves

National Century bond ratings, reserves topics of morning trial testimony
Former CEO Poulsen accused in company's collapse
Friday, October 3, 2008 12:31 PM
By Jodi Andes

THE COLUMBUS DISPATCH
Business was so dire at Dublin-based National Century Financial Enterprises in the month before its bankruptcy, the company could not issue new bonds to raise money. A rating agency had downgraded the company's ranking, a red flag to investors indicating something was wrong.

Yet, National Century's director of securities, Jon Beacham, went with company Chief Executive Lance K. Poulsen to a conference in the Bahamas, Beacham testified at Poulsen's trial in federal court this morning, where he faces fraud and other charges in the collapse of the health-care financing company in 2002.

At that offshore conference, Beacham said he learned another troubling fact from Credit Suisse Boston, which would help sell the bonds, about his employer: National Century was also out of reserves.

Beacham said he questioned Poulsen about it at a breakfast meeting and Poulsen said he depleted the reserves to generate more business. Beacham said encouraged Poulsen to tell investors. Poulsen did, Beacham testified, sending a letter asking investors to sign a waiver that would have allowed National Century to "cure the default in a timely fashion."

However, Beacham told Department of Justice trial attorney Kathleen McGovern that Poulsen's pledge to investors was false.

National Century had offered so many unsecured loans to health-care providers that the providers couldn't have had sufficient accounts receivables to cover the loans. There was no way investors could get all their money back, Beacham testified.
Within a month, National Century filed for bankruptcy and investors lost more than $1.9 billion. About 350 who worked at the Dublin-company at the time also lost their jobs.

When cross-examined, Poulsen's attorney, Pete Anderson, went over in detail the numerous number of people from rating agencies and banks who were reviewing National Century's books through the years. Poulsen's attorneys are contending that were no criminal violations with the company's business practices, with so many watching.

The trial broke for lunch before Anderson finished his cross-examination. The trial is expected to continue at 1:15 p.m.

Poulsen is currently being tried in U.S. District Court in Columbus before Federal Judge Algenon L. Marbley on fraud charges tied to the collapse of National Century.

Beacham is the second witness in the trial that is expected to last about a month. If convicted, Poulsen, 65, could be sentenced to what would amount to life in prison.

jandes@dispatch.com

National Century was advancing more money to ...

I wonder..what companies were those?

Maybe we can ask James K Happ? The ex-employee of NCFE and HCA INC/TN!
(Richard Rainwater)

National Century was advancing more money to certain companies than it should have. The government has alleged National Century overfunded health-care companies owned by Poulsen and other company

"...boss put investors’ money at risk by providing excessive financing to some health-care firms out of the company’s reserves."

Friday, October 3, 2008 - 1:10 PM EDT | Modified: Friday, October 3, 2008 - 4:30 PM
Testimony: Poulsen put investors' money at risk
Business First of Columbus - by Kevin Kemper

Painting a portrait of a CEO at the center of an alleged fraud, a former National Century Financial Enterprises Inc. executive told jurors Friday his boss put investors’ money at risk by providing excessive financing to some health-care firms out of the company’s reserves.
Jon Beacham, National Century’s former director of securitization, was on the stand a second day in the criminal fraud trial of National Century founder Lance Poulsen, 65, who grew Dublin-based National Century to become the nation’s largest financier of medical providers before it collapsed into bankruptcy in 2002. Poulsen’s on trial in U.S. District Court in Columbus on conspiracy, wire fraud, money laundering and securities fraud charges amid accusations he headed a fraud that resulted in the loss of as much as $2.84 million in investor funds.

Beacham told jurors he began noticing problems at National Century in July 2001. He testified he found what investors were being told was different than what was happening at the firm – specifically, Beacham said National Century was advancing more money to certain companies than it should have. The government has alleged National Century overfunded health-care companies owned by Poulsen and other company principals in a ploy to enrich themselves. By overfunding certain companies, Beacham told jurors, reserve accounts designed to protect investors were being depleted.

Recounting a meeting he had with Poulsen at a conference in the Bahamas in fall 2002, Beacham said the CEO told him he made an “executive decision” to fund certain companies from reserve accounts because National Century was facing a liquidity crunch. Beacham advised Poulsen that investors had to know about that, and he said he told Poulsen to inform the company’s attorneys and bankers.

Beacham admitted he never told investors about the irregularities despite knowing for more than a year that National Century wasn’t operating correctly, which he acknowledged was a lie by omission.

Beacham has been cooperating with the prosecution since pleading guilty to a count each of conspiracy and securities fraud. He testified in the February trial of five other National Century executives accused of similar crimes. Those executives were convicted.

Peter Anderson, Poulsen’s attorney, tried to show the jury that National Century was heavily regulated and under the scrutiny of outside businesses by asking Beacham about National Century’s trustees and the companies that rated its securities. Beacham said National Century was subject to random inspections and audits by securities ratings firms.

“There were certainly many sets of eyes looking at the company and the programs while I was there,” he said.

To drive home his point, Anderson also asked Beacham about anonymous letters someone began sending to ratings agencies in April 1999 that suggested National Century was operating fraudulently. Beacham said he heard about the series of three letters immediately after he started at National Century that year because industry journals were reporting on them.

“What ultimately happened?” Anderson asked.

“I think the ratings (of National Century securities) were affirmed,” Beacham said.

Building on the defense’s strategy of focusing on the complex details of National Century’s business, Anderson also questioned Beacham about the company’s governing documents and if Beacham understood all the definitions in them.

“There was some vagueness in the documents,” Beacham said, noting that he needed to ask for an explanation by the company’s attorneys at times. “The documents themselves can be pretty flexible in certain areas.”

Poulsen’s attorneys argued in opening statements that the government has misinterpreted National Century’s governing documents, which actually make everything Poulsen did legal.

Defense lawyers are expected to conclude their cross examination of Beacham when court reconvenes Monday.

National Century packaged medical practice receivables into bonds and sold them to investors. It bought the receivables at discounts, which allowed doctors and other health care providers to quickly secure the cash they needed to run their businesses, rather than waiting for payments, especially delayed ones from insurers.

James K Happ...no mention , once again. Wonder why?

Once again, no mention of the ex-executive who will be last to go on trial in this 'Larger than Enron' case. Last?

After everyone involved, including the President of this company? Why last?
is everyione aware of the origin of this ex-executive? James K Happ...the ex-employee of Richard Rainwater. Never mentioned by any 'reporter'. I wonder why?
Tuesday, September 30, 2008 - 1:54 PM EDT |
Modified: Tuesday, September 30, 2008 - 2:01 PM
Poulsen trial kicks off WednesdayBusiness First of Columbus - by Kevin Kemper


The president of what was once the nation’s largest financier of physician practices and other health-care firms is scheduled to go on trial Wednesday for what the government calls the nation’s largest corporate fraud at a private company.

Lance Poulsen, a founder and former chairman of Dublin-based National Century Financial Enterprises Inc., will stand trial in U.S. District Court in Columbus on charges that he defrauded investors out of nearly $3 billion dollars. The government has charged the 65-year-old Poulsen with 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.

Poulsen is the sixth National Century executive to stand trial. The five who went before him were found guilty of similar charges by a jury in March and are serving prison sentences ranging from five to 15 years.

The criminal trial that begins Oct. 1 will be Poulsen’s second. Another federal jury in Columbus found Poulsen guilty in March of attempting to bribe Sherry Gibson, a former National Century executive scheduled to testify against him. U.S. District Court Judge Algenon Marbley, who is handling all the National Century criminal cases, sentenced Poulsen to 10 years in prison and a $17,500 fine. Demmler has not yet been sentenced.

National Century was a financier for health-care providers, specializing in buying their receivables at a discount for quick cash. It then packaged the receivables as asset-backed bonds and sold them to investors. The Dublin company collapsed into bankruptcy in 2002, forcing other medical businesses to fail and prompting the U.S. Justice Department to begin looking into the company’s failure.

Poulsen’s trial begins 9 a.m. Wednesday with jury selection. The trial is expected to last several weeks.

LARGER than ENRON ....and where is the Press?

Trial to begin for Ohio exec in $1.9 billion fraud case




A case LARGER than ENRON and this is the coverage for the CEO's upcoming trial.



Associated Press - October 1, 2008 1:33 AM ET

COLUMBUS, Ohio (AP) - Jury selection is scheduled to start Wednesday in the corporate fraud trial of the founder of National Century Financial Enterprises.

Federal prosecutors allege that 65-year-old Lance Poulsen fabricated company data, mislead investors and covered up shortfalls by moving money between accounts.

National Century is a health care financing company that was based in suburban Columbus, Ohio.

Poulsen has pleaded innocent.

The trial is expected to cover much of the same ground as a similar trial in March. That jury convicted 5 of Poulsen's co-defendants of multiple charges of fraud and money laundering in the $1.9 billion case.

Poulsen has already been convicted and sentenced to 10 years in prison on charges of trying to bribe a witness scheduled to testify at his trial.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed

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

"...mark the end of a nearly six-year march ..."

"These sentences mark the end of a nearly six-year march to justice for the architects of the financial house of cards known as National Century,"


THE END...REALLY?
THE CEO & Founder has yet to go on trial1
Now how can this be the end?
SMELL A RAT? Or how about an INSIDER IN THE DOJ that is there to PROTECT MR JAMES K HAPP....THE RAINWATER CONNECTION!
YES...RICHARD RAINWATER...the TEXAS BILLIONAIRE AND EX-PARTNER OF BUSH

Where the HELL ARE THE INVESTIGATIVE REPORTERS ?

THE END OF A SIX YEAR MARCH? PLEASE.....WAKE UP!



FOR IMMEDIATE RELEASE
Thursday, August 7, 2008
WWW.USDOJ.GOVCRM
(202) 514-2007
TDD (202) 514-1888


Former National Century Financial Enterprises Executives Sentenced for Roles in $3 Billion Securities Fraud Scheme
WASHINGTON – Four former National Century Financial Enterprises (NCFE) executives have been sentenced for their roles in a scheme to deceive investors about the financial health of NCFE, Acting Assistant Attorney General Matthew Friedrich and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced today. 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.

Donald H. Ayers, 72, of Fort Myers, Fla., an NCFE vice chairman, chief operating officer, director and owner of the company, was sentenced on Aug. 6, 2008, to 15 years in prison for conspiracy, securities fraud and money laundering.

Randolph H. Speer, 57, of Peachtree City, Ga., NCFE’s chief financial officer, was sentenced on Aug. 6, 2008, to 12 years in prison for conspiracy, securities fraud, wire fraud and money laundering.

Roger S. Faulkenberry, 47, of Dublin, a senior executive responsible for raising money from investors, was sentenced on Aug. 7, 2008, to ten years in prison for conspiracy, securities fraud, wire fraud and money laundering.

James E. Dierker, 40, of Powell, Ohio, associate director of marketing and vice president of client development, was sentenced on Aug. 7, 2008, to five years in prison for conspiracy and money laundering.


Rebecca S. Parrett, 59, of Carefree, Ariz., an NCFE vice chairman, secretary, treasurer, director and owner of the company, became a fugitive following the March 2008 jury verdict. She faces a maximum penalty of 75 years in prison and $2.5 million in fines.

U.S. District Court Judge Algenon Marbley also ordered the defendants to forfeit $1.7 billion of property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion.

"In a scheme which lasted for years, these defendants purposely misled the investing public about National Century, its financial health, and the way in which it did business," said Acting Assistant Attorney General Matthew Friedrich. "When the facade collapsed and National Century filed for bankruptcy, investors were left holding the bag for billions of dollars in losses. The sentences handed down in this case justly reflect the gravity of the offenses."

"These sentences mark the end of a nearly six-year march to justice for the architects of the financial house of cards known as National Century," said Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio. "These crimes touched hundreds of thousands of Americans if they participated in a pension that invested in National Century, or had money in any of the financial institutions who bought securities from National Century."


"Unfortunately today’s sentencing does not immediately restore investor confidence or offer complete financial restitution for the victims of one of the largest corporate fraud investigations," said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division. "The FBI and our law enforcement and regulatory partners will do whatever it takes so that no company, in small town America or major metropolitan cities alike, misrepresents their financial health and defrauds investors."


"The IRS, along with our law enforcement partners, will vigorously pursue corporate officers who victimize their investors and violate the public trust," said Internal Revenue Service (IRS) Chief of the Criminal Investigation Division Eileen Mayer. "Today's sentence demonstrates the government's determination to restore and ensure that trust."


Evidence was presented at trial in February 2008 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 a combined value of $4.4 billion, which evidence showed were actually worth approximately six cents on the dollar at the time of NCFE’s bankruptcy in November 2002.

Court documents show that 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. Evidence at trial 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.

Ayers, Speer, Faulkenberry, Dierker and Parrett were five of eight individuals indicted in the case in July 2007. Lance K. Poulsen was severed from the other defendants following his arrest on obstruction of justice charges on Oct. 18, 2007. He will be sentenced on the obstruction of justice charges on Aug. 8, 2008. Poulsen’s trial on conspiracy, securities fraud, wire fraud, mail fraud and money laundering charges is scheduled to begin Oct. 1, 2008. James K. Happ, a certified public accountant and former executive vice president for servicer operations will face charges of conspiracy and wire fraud at trial scheduled to begin Dec. 1, 2008. Jon A. Beacham, who was responsible for raising money from investors through the sale of notes, pleaded guilty to conspiracy and securities fraud on July 13, 2007, and awaits sentencing.

The case was prosecuted by Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Senior Litigation Counsel Kathleen McGovern and Trial Attorney Wes R. Porter of the Criminal Division's Fraud Section, with assistance from Fraud Section Paralegal Specialists Crystal Curry and Sarah Marberg. The investigation was conducted by FBI agents Matt Daly, Ingrid Schmidt and Tad Morris; IRS Inspectors Greg Ruwe and Mark Bailey; U.S. Postal Inspector Dave Mooney; and U.S. Immigration and Customs Enforcement agent Celeste Koszut.

###

08-700

Through a mistake in the system, Parrett was never fitted for a monitoring device ....

Funny, this article does not mention one word of the upcoming trial for the "MASTERMIND" CEO, FOUNDER, of this company ! Nor , does it mention the EXECUTIVE, that is supposedly expected to go to trial AFTER, yes AFTER, the FOUNDER!

James K Happ.Now this is the MAN!!!
No reporter mentions this guy......hmmm.......WONDER WHY?
Although, he & his wife were able to sell and purchase multi-million dollar property in Florida recently. Apparently, he was prepared for that but not the trial that calls for him to be last in the GROUP......hmmmm

Remeber, FIVE EXECUTIVES were already sentenced, one of which has already served and been released.



Friday, August 15, 2008 | Modified: Tuesday, August 19, 2008 - 8:00 AM
Parrett’s disappearance kept rumor mill alive amid NCFE sentencings
Business First of Columbus -
by Kevin Kemper


Still missing after more than four months on the lam, Rebecca Parrett’s legal appeals are being put on hold while speculation circulates over her whereabouts.

Parrett was one of five executives convicted this year in a multibillion-dollar fraud linked to the 2002 collapse of National Century Financial Enterprises Inc., the Dublin company she co-founded. Parrett, 58, was considered part of the leadership cabal at the company and was convicted on fraud, money laundering and securities fraud charges. She is facing up to 75 years in prison on those charges.

But shortly after returning to her home in Arizona to await sentencing, Parrett went missing. Since her late March disappearance, U.S. marshals have been chasing down “several dozen” tips from strangers and acquaintances, said Deputy U.S. Marshal Drew Shadwick, who is in charge of the investigation.

Through a mistake in the system, Parrett was never fitted for a monitoring device after she was allowed to go home.

News about Parrett has been scarce, and in the absence of facts, it appears fiction has begun to circulate.

During the sentencings of Parrett’s co-defendants this month in Columbus, legal observers talked about what they have heard through the grapevine. One suggested Parrett’s minivan was found. Another said authorities discovered a corpse that might have been Parrett.

Another theory suggested someone saw Parrett in Aruba and snapped her photo with a cell phone.

“We’ve had some stranger (identifications),” Shadwick said. “People send pictures thinking it’s her.”

Part of that may be due to the publicity surrounding Parrett’s disappearance. The television show America’s Most Wanted features Parrett on its Web site and it aired a segment about her in June.

The site claims her aliases include Rebecca Green, Rebecca Kunzi, Rebecca House, Rebecca Robinson, Rebecca Ayers and Rebecca Mayes.

Adding fuel to the rumor fire was the accusation that Parrett’s four co-conspirators were accused in April of plotting an escape to Aruba.

Three of the former executives, Donald Ayers, Randolph Speer and Roger Faulkenberry, were jailed until their sentencings as a precaution. Co-defendant James Dierker was allowed by U.S. District Court Judge Algenon Marbley to remain under house arrest after friends, family and coworkers sent letters attesting to his character.

In addition to the jail time she is facing on her convictions, Parrett could expect to face up to 15 additional years for disappearing, said Assistant U.S. Attorney Douglas Squires.

“Her flight would be considered in fashioning a sentence, as well as potential new charges for bail jumping,” said Squires, who prosecuted the National Century executives.

By comparison, a jury found Ayers, who is Parrett’s ex-husband, guilty on nearly identical charges as Parrett. He was sentenced to 15 years in prison.

The government didn’t sentence Parrett despite her absence because federal law allows convicts to seek leniency before sentencing, said Gregory Peterson, Parrett’s attorney.

Peterson said he’s had no contact from Parrett since shortly after the trial. After she disappeared, he stopped filing legal arguments on her behalf.

“Everything with respect to her has been stayed, like a time out,” he said.

Peterson told Marbley after Parrett’s conviction that she had no money left after paying her legal fees, but government agents think Parrett has access to wealth thanks to her time at National Century, where the fraud took nearly $2 billion from investors.

If that’s the case, Parrett has no reason to turn herself in, said Lois Colley, a private investigator who runs Colley Intelligence International in Columbus.

“She doesn’t have anything to give to the government unless she knows where some of the money is buried,” said the law enforcement veteran. “But the government is not usually interested in bargaining.”



614-220-5460 | kkemper@bizjournals.com

The performance of both trustees for NCFE, J.P. Morgan Chase and Bank One Corp., has come under fire;

NOT ENOUGH!
This story has REALLY yet to be told!!!


Article Excerpt
The fall of National Century Financial Enterprises, which thoroughly rattled the asset-backed securities market in December, continues to reverberate. Moody's Investors Service has gone on the warpath over the role of ABS trustees in that scandal, and is threatening to downgrade hundreds of ABS...
existing and mortgage-backed bonds-a threat that has rankled some market players, who point a finger right back at the ratings agencies.

Sources attending the "ABS West" securitization industry conference in Phoenix, Arizona last week said that some attendees publicly berated Moody's analysts for, as one source reported, "terrorizing the market" with its new comments about trustees. (The performance of both trustees for NCFE, J.P. Morgan Chase and Bank One Corp., has come under fire; Moody's last week said it may downgrade some ABS in which trustees see their role as ceremonial rather than protective of investors.)...

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......

Accountability:Please......Is this over? Where is the FOUNDER And the LAST MAN STANDING?

What a joke! One would thinkk fromt hsi headline that this case is settled!
Have you forgotten about Poulsen & Happ for the FRAUD? The MOST IMPORTANT part of this CASE has yet to be TRIED and the MEDIA is "PORTRAYING" an end!!
SHAME ON THE MEDIA!!

This is from the website:

http://www.accountability-central.com



Former National Century Financial Enterprises Executives Sentenced for Roles in $3 Billion Securities Fraud Scheme
BY: DEPARTMENT OF JUSTICE


WASHINGTON – Four former National Century Financial Enterprises (NCFE) executives have been sentenced for their roles in a scheme to deceive investors about the financial health of NCFE, Acting Assistant Attorney General Matthew Friedrich and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced today. 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.

Donald H. Ayers, 72, of Fort Myers, Fla., an NCFE vice chairman, chief operating officer, director and owner of the company, was sentenced on Aug. 6, 2008, to 15 years in prison for conspiracy, securities fraud and money laundering.

Randolph H. Speer, 57, of Peachtree City, Ga., NCFE’s chief financial officer, was sentenced on Aug. 6, 2008, to 12 years in prison for conspiracy, securities fraud, wire fraud and money laundering.

Roger S. Faulkenberry, 47, of Dublin, a senior executive responsible for raising money from investors, was sentenced on Aug. 7, 2008, to ten years in prison for conspiracy, securities fraud, wire fraud and money laundering.

James E. Dierker, 40, of Powell, Ohio, associate director of marketing and vice president of client development, was sentenced on Aug. 7, 2008, to five years in prison for conspiracy and money laundering.

Rebecca S. Parrett, 59, of Carefree, Ariz., an NCFE vice chairman, secretary, treasurer, director and owner of the company, became a fugitive following the March 2008 jury verdict. She faces a maximum penalty of 75 years in prison and $2.5 million in fines.

U.S. District Court Judge Algenon Marbley also ordered the defendants to forfeit $1.7 billion of property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion.

"In a scheme which lasted for years, these defendants purposely misled the investing public about National Century, its financial health, and the way in which it did business," said Acting Assistant Attorney General Matthew Friedrich. "When the facade collapsed and National Century filed for bankruptcy, investors were left holding the bag for billions of dollars in losses. The sentences handed down in this case justly reflect the gravity of the offenses."

"These sentences mark the end of a nearly six-year march to justice for the architects of the financial house of cards known as National Century," said Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio. "These crimes touched hundreds of thousands of Americans if they participated in a pension that invested in National Century, or had money in any of the financial institutions who bought securities from National Century."

"Unfortunately today’s sentencing does not immediately restore investor confidence or offer complete financial restitution for the victims of one of the largest corporate fraud investigations," said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division. "The FBI and our law enforcement and regulatory partners will do whatever it takes so that no company, in small town America or major metropolitan cities alike, misrepresents their financial health and defrauds investors."

"The IRS, along with our law enforcement partners, will vigorously pursue corporate officers who victimize their investors and violate the public trust," said Internal Revenue Service (IRS) Chief of the Criminal Investigation Division Eileen Mayer. "Today's sentence demonstrates the government's determination to restore and ensure that trust."

Evidence was presented at trial in February 2008 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 a combined value of $4.4 billion, which evidence showed were actually worth approximately six cents on the dollar at the time of NCFE’s bankruptcy in November 2002.

Court documents show that 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. Evidence at trial 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.

Ayers, Speer, Faulkenberry, Dierker and Parrett were five of eight individuals indicted in the case in July 2007. Lance K. Poulsen was severed from the other defendants following his arrest on obstruction of justice charges on Oct. 18, 2007. He will be sentenced on the obstruction of justice charges on Aug. 8, 2008. Poulsen’s trial on conspiracy, securities fraud, wire fraud, mail fraud and money laundering charges is scheduled to begin Oct. 1, 2008. James K. Happ, a certified public accountant and former executive vice president for servicer operations will face charges of conspiracy and wire fraud at trial scheduled to begin Dec. 1, 2008. Jon A. Beacham, who was responsible for raising money from investors through the sale of notes, pleaded guilty to conspiracy and securities fraud on July 13, 2007, and awaits sentencing.

The case was prosecuted by Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Senior Litigation Counsel Kathleen McGovern and Trial Attorney Wes R. Porter of the Criminal Division's Fraud Section, with assistance from Fraud Section Paralegal Specialists Crystal Curry and Sarah Marberg. The investigation was conducted by FBI agents Matt Daly, Ingrid Schmidt and Tad Morris; IRS Inspectors Greg Ruwe and Mark Bailey; U.S. Postal Inspector Dave Mooney; and U.S. Immigration and Customs Enforcement agent Celeste Koszut.

How did James K Happ Arrive at NCFE? Better yet.....

WHY did James K Happ work at NCFE? Where did this man come from before he arrived at NCFE? and WHEN? Why is James K Happ the LAST MAN STANDING TRIAL?
December,,,,,,,AFTER THE ELECTION......Think there is no connection?

James K. Happ, a certified public accountant and former executive vice president for servicer operations......



"In a scheme which lasted for years.....
"These sentences mark the end of a nearly six-year march to justice.....

DOJ : "These sentences mark the end..."
THE END ? What about trials in October and more importantly December ....
Just like the "Market Analysts" MISSED this SCHEME.....(Not sure if that is true)
But we must question if our '4th ARM of Government'(Journalists) Missing the TRUE ACCURATE SCHEME!

Now with statements like this, "When National Century collapsed in November 2002, more than 275 health-care providers ..." one could think that NCFE was the responsible sole party for the Bankruptcyof 275 health-care provders.....

But what 'financial state' were these providers in when they SOLD their Receivables in the first place? How much was NCFE promising for their receivables? Pennieson the dollar? WAKE UP!!!

FOR IMMEDIATE RELEASE
Thursday, August 7, 2008
WWW.USDOJ.GOVCRM
(202) 514-2007
TDD (202) 514-1888

Former National Century Financial Enterprises Executives Sentenced for Roles in $3 Billion Securities Fraud Scheme
WASHINGTON – Four former National Century Financial Enterprises (NCFE) executives have been sentenced for their roles in a scheme to deceive investors about the financial health of NCFE, Acting Assistant Attorney General Matthew Friedrich and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced today. 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.

Donald H. Ayers, 72, of Fort Myers, Fla., an NCFE vice chairman, chief operating officer, director and owner of the company, was sentenced on Aug. 6, 2008, to 15 years in prison for conspiracy, securities fraud and money laundering.

Randolph H. Speer, 57, of Peachtree City, Ga., NCFE’s chief financial officer, was sentenced on Aug. 6, 2008, to 12 years in prison for conspiracy, securities fraud, wire fraud and money laundering.

Roger S. Faulkenberry, 47, of Dublin, a senior executive responsible for raising money from investors, was sentenced on Aug. 7, 2008, to ten years in prison for conspiracy, securities fraud, wire fraud and money laundering.

James E. Dierker, 40, of Powell, Ohio, associate director of marketing and vice president of client development, was sentenced on Aug. 7, 2008, to five years in prison for conspiracy and money laundering.


Rebecca S. Parrett, 59, of Carefree, Ariz., an NCFE vice chairman, secretary, treasurer, director and owner of the company, became a fugitive following the March 2008 jury verdict. She faces a maximum penalty of 75 years in prison and $2.5 million in fines.

U.S. District Court Judge Algenon Marbley also ordered the defendants to forfeit $1.7 billion of property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion.

"In a scheme which lasted for years, these defendants purposely misled the investing public about National Century, its financial health, and the way in which it did business," said Acting Assistant Attorney General Matthew Friedrich. "When the facade collapsed and National Century filed for bankruptcy, investors were left holding the bag for billions of dollars in losses. The sentences handed down in this case justly reflect the gravity of the offenses."

"These sentences mark the end of a nearly six-year march to justice for the architects of the financial house of cards known as National Century," said Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio. "These crimes touched hundreds of thousands of Americans if they participated in a pension that invested in National Century, or had money in any of the financial institutions who bought securities from National Century."


"Unfortunately today’s sentencing does not immediately restore investor confidence or offer complete financial restitution for the victims of one of the largest corporate fraud investigations," said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division. "The FBI and our law enforcement and regulatory partners will do whatever it takes so that no company, in small town America or major metropolitan cities alike, misrepresents their financial health and defrauds investors."


"The IRS, along with our law enforcement partners, will vigorously pursue corporate officers who victimize their investors and violate the public trust," said Internal Revenue Service (IRS) Chief of the Criminal Investigation Division Eileen Mayer. "Today's sentence demonstrates the government's determination to restore and ensure that trust."


Evidence was presented at trial in February 2008 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 a combined value of $4.4 billion, which evidence showed were actually worth approximately six cents on the dollar at the time of NCFE’s bankruptcy in November 2002.

Court documents show that 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. Evidence at trial 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.

Ayers, Speer, Faulkenberry, Dierker and Parrett were five of eight individuals indicted in the case in July 2007. Lance K. Poulsen was severed from the other defendants following his arrest on obstruction of justice charges on Oct. 18, 2007. He will be sentenced on the obstruction of justice charges on Aug. 8, 2008. Poulsen’s trial on conspiracy, securities fraud, wire fraud, mail fraud and money laundering charges is scheduled to begin Oct. 1, 2008. James K. Happ, a certified public accountant and former executive vice president for servicer operations will face charges of conspiracy and wire fraud at trial scheduled to begin Dec. 1, 2008. Jon A. Beacham, who was responsible for raising money from investors through the sale of notes, pleaded guilty to conspiracy and securities fraud on July 13, 2007, and awaits sentencing.

The case was prosecuted by Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Senior Litigation Counsel Kathleen McGovern and Trial Attorney Wes R. Porter of the Criminal Division's Fraud Section, with assistance from Fraud Section Paralegal Specialists Crystal Curry and Sarah Marberg. The investigation was conducted by FBI agents Matt Daly, Ingrid Schmidt and Tad Morris; IRS Inspectors Greg Ruwe and Mark Bailey; U.S. Postal Inspector Dave Mooney; and U.S. Immigration and Customs Enforcement agent Celeste Koszut.

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