MORE PONZI SCHEMES? THIS NEEDS TO END! WAKE UP AMERICA!
JPMorgan and CITI were found GUILTY of contributing to the ENRON PONSI SCHEME.
JPMORGAN CHASE and CITI PAID GOVERNMENT SETTLED AGREEMENTS FOR FRAUD in our nation's “LARGEST ‘PRIVATE’ FINANACIAL FRAUD CASE “ in our history! National Century Financial Enterprises, Inc. (NCFE) Federal prosecutors proclaimed “no one has ever heard of” this case. I believe that was intentional. (DOJ case ended 2008)
This month, FEBRUARY ‘09, although the DOJ’s NCFE case ended in December 2008, we now have ‘Credit Suisse Securities LLC has asked the court overseeing litigation over the collapse of health care lender National Century Financial Enterprises Inc. to sanction Lloyds TSB Bank PLC for allegedly hiding a deal with Moody's Investor Services Inc…’
December 2008, at the last trial of NCFE in Columbus, Ohio, ALL executives EXCEPT ONE, was acquitted. Funny, Mr. Happ was the last executive to go on trial, even after the so-called master mind, CEO Lance Poulsen.
Mr. James K Happ, the ONE and ONLY EXECUTIVE acquitted in this trial that NO ONE HAS EVER HEARD OF. Who is Mr. James K Happ?
Mr. James K Happ was the CFO at Richard Rainwater's Columbia Homecare Group prior to arriving at National Century Financial Enterprises, Inc. (NCFE)
As CFO at Columbia Homecare Group, Mr. James K. Happ was responsible for divesting the ‘losing assets’ of a publicly traded company’s homecare segment via NCFE's financing. The alleged divestiture was a sale to a 'PRIVATE' company, Medshares, Inc. Medshares was a healthcare company that was already under investigation for MEDICARE/MEDICAID FRAUD. Medshares acquired this divestiture and six months or so later, filed bankruptcy.
Associated Press - February 21, 2008
COLUMBUS, Ohio (AP) - A former executive of NCFE says the company withheld financial information from its investors. Sherry Gibson testified Thursday in federal court in the government's securities fraud case against five former owners and executives of National Century Financial Enterprises.
The government alleges the five schemed to defraud investors of $1.9 billion.
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.
National Century executives also had voting control of Medshares stock. National Century wired that company $93 million without receivables during that same time frame.
The last trial in the “LARGEST ‘PRIVATE’ FINANACIAL FRAUD CASE “in our history, the one and only executive, James K Happ gets his acquittal. According to the jurors, “The PROSECUTOR did not do his JOB!”
The LARGEST CORPORATE BANKRUPTCY ever filed in Memphis, TN was filed by Medshares, Inc. in 1999.
If one searches the court records, the outcry from so many lawyers of fraud were only to be scolded by the judge and warned not to use the "F" word in her court.
Showing posts with label JPMorgan Chase CEO and chair James Dimon. Show all posts
Showing posts with label JPMorgan Chase CEO and chair James Dimon. Show all posts
Wednesday, February 11, 2009
Monday, December 1, 2008
JPMorgan Chase , Citigroup, Goldman Sachs, & Friends
Wednesday, October 29, 2008
Prosecutors try to paint Poulsen as liarBusiness First of Columbus - by Kevin Kemper
Given the chance to cross-examine the former CEO of National Century Financial Enterprises Inc., prosecutors wasted little time in attempting to portray him as a liar with a history of perjury.
Justice Department Attorney Leo Wise began his cross of Lance Poulsen Wednesday afternoon by reminding the 65-year-old former executive, and the jury who will decide Poulsen’s fate, of the oath Poulsen took to tell the truth. Wise and Poulsen then entered into a sometimes contentious back-and-forth over what Poulsen had testified to earlier.
Wise began by asking about testimony Poulsen gave on Tuesday in which he told the jury he had been living in Ross County Jail in Chillicothe for the last year because he had been convicted of obstruction. Wise asked Poulsen if he hadn’t also been convicted of witness tampering. Poulsen replied that he couldn’t remember the specific charges.
“It’s your testimony that (prison) has had a profound effect on your life and you don’t remember the charges?” Wise asked.
Poulsen answered that he remembered it was obstruction and related charges, but couldn’t remember what those related charges were.
Wise then asked Poulsen about a mid-November bond hearing in which U.S. District Judge Algenon Marbley revoked Poulsen’s bond. Poulsen, the founder of National Century, was originally scheduled to stand trial on fraud and money laundering charges late last year. That trial was postponed, however, when the government detained Poulsen on charges that he attempted to bribe a government witness. A separate jury found Poulsen guilty of the charge in March and he was sentenced to 10 years imprisonment.
When Marbley was considering revoking Poulsen’s bond in November because of the witness tampering charges, Poulsen told the court he was employed by a firm called MTL Enterprises. Wise asked Poulsen if it was true that the government discovered a day after the bond hearing that Poulsen hadn’t worked at MTL for over a month. Poulsen said that was correct.
Wise also asked about testimony Poulsen gave on Wednesday in which he said he was not aware of anyone altering books at the company. After Poulsen said he remembered giving that testimony, Wise asked Poulsen if it was his “OK” that was written next to notations on company investor reports that said arbitrary numbers had been plugged in to make the reports compliant.
“It could be my ‘OK,’ I don’t know,” Poulsen said. “The location (on the document) is typically where I put an ‘OK.’ ”
Poulsen, standing trial in U.S. District Court in Columbus on charges that he orchestrated a fraud at National Century that resulted in $2.84 billion of investor money disappearing, will take the stand again Thursday morning. After that, attorneys are expected to make their closing statements to the jury.
Prosecutors try to paint Poulsen as liarBusiness First of Columbus - by Kevin Kemper
Given the chance to cross-examine the former CEO of National Century Financial Enterprises Inc., prosecutors wasted little time in attempting to portray him as a liar with a history of perjury.
Justice Department Attorney Leo Wise began his cross of Lance Poulsen Wednesday afternoon by reminding the 65-year-old former executive, and the jury who will decide Poulsen’s fate, of the oath Poulsen took to tell the truth. Wise and Poulsen then entered into a sometimes contentious back-and-forth over what Poulsen had testified to earlier.
Wise began by asking about testimony Poulsen gave on Tuesday in which he told the jury he had been living in Ross County Jail in Chillicothe for the last year because he had been convicted of obstruction. Wise asked Poulsen if he hadn’t also been convicted of witness tampering. Poulsen replied that he couldn’t remember the specific charges.
“It’s your testimony that (prison) has had a profound effect on your life and you don’t remember the charges?” Wise asked.
Poulsen answered that he remembered it was obstruction and related charges, but couldn’t remember what those related charges were.
Wise then asked Poulsen about a mid-November bond hearing in which U.S. District Judge Algenon Marbley revoked Poulsen’s bond. Poulsen, the founder of National Century, was originally scheduled to stand trial on fraud and money laundering charges late last year. That trial was postponed, however, when the government detained Poulsen on charges that he attempted to bribe a government witness. A separate jury found Poulsen guilty of the charge in March and he was sentenced to 10 years imprisonment.
When Marbley was considering revoking Poulsen’s bond in November because of the witness tampering charges, Poulsen told the court he was employed by a firm called MTL Enterprises. Wise asked Poulsen if it was true that the government discovered a day after the bond hearing that Poulsen hadn’t worked at MTL for over a month. Poulsen said that was correct.
Wise also asked about testimony Poulsen gave on Wednesday in which he said he was not aware of anyone altering books at the company. After Poulsen said he remembered giving that testimony, Wise asked Poulsen if it was his “OK” that was written next to notations on company investor reports that said arbitrary numbers had been plugged in to make the reports compliant.
“It could be my ‘OK,’ I don’t know,” Poulsen said. “The location (on the document) is typically where I put an ‘OK.’ ”
Poulsen, standing trial in U.S. District Court in Columbus on charges that he orchestrated a fraud at National Century that resulted in $2.84 billion of investor money disappearing, will take the stand again Thursday morning. After that, attorneys are expected to make their closing statements to the jury.
$2.84 billion of investor money disappearing, hmmm
Given the chance to cross-examine the former CEO of National Century Financial Enterprises Inc., prosecutors wasted little time in attempting to portray him as a liar with a history of perjury.
Justice Department Attorney Leo Wise began his cross of Lance Poulsen Wednesday afternoon by reminding the 65-year-old former executive, and the jury who will decide Poulsen’s fate, of the oath Poulsen took to tell the truth. Wise and Poulsen then entered into a sometimes contentious back-and-forth over what Poulsen had testified to earlier.
Wise began by asking about testimony Poulsen gave on Tuesday in which he told the jury he had been living in Ross County Jail in Chillicothe for the last year because he had been convicted of obstruction. Wise asked Poulsen if he hadn’t also been convicted of witness tampering. Poulsen replied that he couldn’t remember the specific charges.
“It’s your testimony that (prison) has had a profound effect on your life and you don’t remember the charges?” Wise asked.
Poulsen answered that he remembered it was obstruction and related charges, but couldn’t remember what those related charges were.
Wise then asked Poulsen about a mid-November bond hearing in which U.S. District Judge Algenon Marbley revoked Poulsen’s bond. Poulsen, the founder of National Century, was originally scheduled to stand trial on fraud and money laundering charges late last year. That trial was postponed, however, when the government detained Poulsen on charges that he attempted to bribe a government witness. A separate jury found Poulsen guilty of the charge in March and he was sentenced to 10 years imprisonment.
When Marbley was considering revoking Poulsen’s bond in November because of the witness tampering charges, Poulsen told the court he was employed by a firm called MTL Enterprises. Wise asked Poulsen if it was true that the government discovered a day after the bond hearing that Poulsen hadn’t worked at MTL for over a month. Poulsen said that was correct.
Wise also asked about testimony Poulsen gave on Wednesday in which he said he was not aware of anyone altering books at the company. After Poulsen said he remembered giving that testimony, Wise asked Poulsen if it was his “OK” that was written next to notations on company investor reports that said arbitrary numbers had been plugged in to make the reports compliant.
“It could be my ‘OK,’ I don’t know,” Poulsen said. “The location (on the document) is typically where I put an ‘OK.’ ”
Poulsen, standing trial in U.S. District Court in Columbus on charges that he orchestrated a fraud at National Century that resulted in $2.84 billion of investor money disappearing, will take the stand again Thursday morning. After that, attorneys are expected to make their closing statements to the jury.
Justice Department Attorney Leo Wise began his cross of Lance Poulsen Wednesday afternoon by reminding the 65-year-old former executive, and the jury who will decide Poulsen’s fate, of the oath Poulsen took to tell the truth. Wise and Poulsen then entered into a sometimes contentious back-and-forth over what Poulsen had testified to earlier.
Wise began by asking about testimony Poulsen gave on Tuesday in which he told the jury he had been living in Ross County Jail in Chillicothe for the last year because he had been convicted of obstruction. Wise asked Poulsen if he hadn’t also been convicted of witness tampering. Poulsen replied that he couldn’t remember the specific charges.
“It’s your testimony that (prison) has had a profound effect on your life and you don’t remember the charges?” Wise asked.
Poulsen answered that he remembered it was obstruction and related charges, but couldn’t remember what those related charges were.
Wise then asked Poulsen about a mid-November bond hearing in which U.S. District Judge Algenon Marbley revoked Poulsen’s bond. Poulsen, the founder of National Century, was originally scheduled to stand trial on fraud and money laundering charges late last year. That trial was postponed, however, when the government detained Poulsen on charges that he attempted to bribe a government witness. A separate jury found Poulsen guilty of the charge in March and he was sentenced to 10 years imprisonment.
When Marbley was considering revoking Poulsen’s bond in November because of the witness tampering charges, Poulsen told the court he was employed by a firm called MTL Enterprises. Wise asked Poulsen if it was true that the government discovered a day after the bond hearing that Poulsen hadn’t worked at MTL for over a month. Poulsen said that was correct.
Wise also asked about testimony Poulsen gave on Wednesday in which he said he was not aware of anyone altering books at the company. After Poulsen said he remembered giving that testimony, Wise asked Poulsen if it was his “OK” that was written next to notations on company investor reports that said arbitrary numbers had been plugged in to make the reports compliant.
“It could be my ‘OK,’ I don’t know,” Poulsen said. “The location (on the document) is typically where I put an ‘OK.’ ”
Poulsen, standing trial in U.S. District Court in Columbus on charges that he orchestrated a fraud at National Century that resulted in $2.84 billion of investor money disappearing, will take the stand again Thursday morning. After that, attorneys are expected to make their closing statements to the jury.
$2.84 billion of investor money disappearing, ...
Wednesday, October 29, 2008
Prosecutors try to paint Poulsen as liarBusiness First of Columbus - by Kevin Kemper
Given the chance to cross-examine the former CEO of National Century Financial Enterprises Inc., prosecutors wasted little time in attempting to portray him as a liar with a history of perjury.
Justice Department Attorney Leo Wise began his cross of Lance Poulsen Wednesday afternoon by reminding the 65-year-old former executive, and the jury who will decide Poulsen’s fate, of the oath Poulsen took to tell the truth. Wise and Poulsen then entered into a sometimes contentious back-and-forth over what Poulsen had testified to earlier.
Wise began by asking about testimony Poulsen gave on Tuesday in which he told the jury he had been living in Ross County Jail in Chillicothe for the last year because he had been convicted of obstruction. Wise asked Poulsen if he hadn’t also been convicted of witness tampering. Poulsen replied that he couldn’t remember the specific charges.
“It’s your testimony that (prison) has had a profound effect on your life and you don’t remember the charges?” Wise asked.
Poulsen answered that he remembered it was obstruction and related charges, but couldn’t remember what those related charges were.
Wise then asked Poulsen about a mid-November bond hearing in which U.S. District Judge Algenon Marbley revoked Poulsen’s bond. Poulsen, the founder of National Century, was originally scheduled to stand trial on fraud and money laundering charges late last year. That trial was postponed, however, when the government detained Poulsen on charges that he attempted to bribe a government witness. A separate jury found Poulsen guilty of the charge in March and he was sentenced to 10 years imprisonment.
When Marbley was considering revoking Poulsen’s bond in November because of the witness tampering charges, Poulsen told the court he was employed by a firm called MTL Enterprises. Wise asked Poulsen if it was true that the government discovered a day after the bond hearing that Poulsen hadn’t worked at MTL for over a month. Poulsen said that was correct.
Wise also asked about testimony Poulsen gave on Wednesday in which he said he was not aware of anyone altering books at the company. After Poulsen said he remembered giving that testimony, Wise asked Poulsen if it was his “OK” that was written next to notations on company investor reports that said arbitrary numbers had been plugged in to make the reports compliant.
“It could be my ‘OK,’ I don’t know,” Poulsen said. “The location (on the document) is typically where I put an ‘OK.’ ”
Poulsen, standing trial in U.S. District Court in Columbus on charges that he orchestrated a fraud at National Century that resulted in $2.84 billion of investor money disappearing, will take the stand again Thursday morning. After that, attorneys are expected to make their closing statements to the jury.
Prosecutors try to paint Poulsen as liarBusiness First of Columbus - by Kevin Kemper
Given the chance to cross-examine the former CEO of National Century Financial Enterprises Inc., prosecutors wasted little time in attempting to portray him as a liar with a history of perjury.
Justice Department Attorney Leo Wise began his cross of Lance Poulsen Wednesday afternoon by reminding the 65-year-old former executive, and the jury who will decide Poulsen’s fate, of the oath Poulsen took to tell the truth. Wise and Poulsen then entered into a sometimes contentious back-and-forth over what Poulsen had testified to earlier.
Wise began by asking about testimony Poulsen gave on Tuesday in which he told the jury he had been living in Ross County Jail in Chillicothe for the last year because he had been convicted of obstruction. Wise asked Poulsen if he hadn’t also been convicted of witness tampering. Poulsen replied that he couldn’t remember the specific charges.
“It’s your testimony that (prison) has had a profound effect on your life and you don’t remember the charges?” Wise asked.
Poulsen answered that he remembered it was obstruction and related charges, but couldn’t remember what those related charges were.
Wise then asked Poulsen about a mid-November bond hearing in which U.S. District Judge Algenon Marbley revoked Poulsen’s bond. Poulsen, the founder of National Century, was originally scheduled to stand trial on fraud and money laundering charges late last year. That trial was postponed, however, when the government detained Poulsen on charges that he attempted to bribe a government witness. A separate jury found Poulsen guilty of the charge in March and he was sentenced to 10 years imprisonment.
When Marbley was considering revoking Poulsen’s bond in November because of the witness tampering charges, Poulsen told the court he was employed by a firm called MTL Enterprises. Wise asked Poulsen if it was true that the government discovered a day after the bond hearing that Poulsen hadn’t worked at MTL for over a month. Poulsen said that was correct.
Wise also asked about testimony Poulsen gave on Wednesday in which he said he was not aware of anyone altering books at the company. After Poulsen said he remembered giving that testimony, Wise asked Poulsen if it was his “OK” that was written next to notations on company investor reports that said arbitrary numbers had been plugged in to make the reports compliant.
“It could be my ‘OK,’ I don’t know,” Poulsen said. “The location (on the document) is typically where I put an ‘OK.’ ”
Poulsen, standing trial in U.S. District Court in Columbus on charges that he orchestrated a fraud at National Century that resulted in $2.84 billion of investor money disappearing, will take the stand again Thursday morning. After that, attorneys are expected to make their closing statements to the jury.
Friday, September 26, 2008
NCFE: Death-Dealing Side of the Bubble
NCFE, National Century Financial Enterprises, Inc., was a private Healthcare FINANCIAL company, the largest 'private' bankruptcy and dubbed by Federal Prosecutors in Columbus Ohio 'larger than Enron'.
NCFE: Death-Dealing Side of the Bubbleby John Hoefle
As a private company not required to make public filings with the Securities and Exchange Commission, much about NCFE remains shrouded in secrecy. But one can tell a lot by looking at its board, which consisted of four of the company's founders and two executives of J.P. Morgan Chase, which controls 16% of the company through its Beacon Group III private equity fund. In addition, Morgan Chase and Bank One are trustees for NCFE's bond trusts. The bonds themselves were underwritten by Crédit Suisse First Boston, the investment-banking arm of Switzerland's Crédit Suisse banking/insurance giant. The top purchasers of the bonds included PIMCO, the world's largest bond fund and a subsidiary of insurer Allianz, the world's third-largest financial institution; Alliance Capital Management, an arm of French insurance giant Axa; and ING, the Dutch insurance/banking conglomerate.
It is this combination of monetary policy, deregulation and financial asset-grabbing which created the dot.com bubble, the related telecom bubble, and the Enron/energy pirates' Wall Street bubble; all of which have subsequently exploded and are now revealed to be what LaRouche had said they were—scams. Now, with the bankruptcy of NCFE, another aspect of this post-1998 looting comes out of the shadows and into the light.
The Asset-Backed Securities Danger
NCFE was basically a financial "factor," advancing cash to hospitals, physicians, and other health-care facilities in exchange for their receivables—the delayed payments made by insurance companies and government agencies for patients' treatment. NCFE would place these receivables into pools, then issue derivative securities—known as asset-backed securities—backed by the expected insurance payments.
All in all, NCFE appears to fit the profile of a looting operation, whose existence served mainly to divert a portion of the health-care income stream into the pockets of some of the biggest financial institutions in the world. Now it has collapsed, leaving a bankruptcy wave which is now spreading among medical providers, with disastrous consequences for the health-care system and its patients.
NCFE serves about 100 healthcare providers nationwide, including hospitals, nursing homes, home healthcare agencies, specialty clinic physician groups, durable medical equipment providers, laboratories and other disciplines within the healthcare
industry. NCFE buys medical providers' bills at a discount (reportedly up to 20% after various fees), securitize those receivables and sell bonds to institutional and other investors.
Collections and insurance reimbursements, in turn, pay down the
bonds. The excess of collections over what it pays to buy the
receivables is NCFE's income. Healthcare providers, when NCFE
pays, receive the benefit of immediate cash to fund their
operations without having to wait for reimbursement.
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
(c) an Equity Reserve Account, supposed to have a $217
million deposit on Oct. 1, only had $10 million on
deposit.
When those facts bubbled to the surface, Bank One ran to the
state and federal courts in Ohio seeking appointment of a
Receiver and prompted agents from the Federal Bureau of
Investigation to descend on NCFE's corporate offices.
Lance Poulsen, the Company's founder, has resigned as chairman
and chief executive. The Company's workforce has fallen from 325
to 103 this week. The Company's main office is located in
Dublin, Ohio, and maintains three regional offices in Scottsdale,
Arizona; Durham, North Carolina; and Port Charlotte, Florida.
NATIONAL CENTURY DEBTORS' CHAPTER 11 DATABASE
-----------------------------------------------------------------
Debtor entites filing separate chapter 11 petitions:
Entity Case No.
------ --------
National Century Financial Enterprises Inc. 02-65235
NPF XII Inc. 02-65236
National Premier Financial Services Inc. 02-65237
NPF VI Inc. 02-65238
Memorial Drive Office Complex LLC 02-65239
National Physicians Funding II Inc. 02-65240
Anesthesia Solutions Inc. 02-65241
NPF-CSL Inc. 02-65242
NPF-LL Inc. 02-65243
NPF-SPL Inc. 02-65244
NPF X Inc. 02-65245
NPF Capital Partners Inc. 02-65246
NPF Capital Inc. 02-65247
NCFE.com Inc. 02-65248
Chapter 11 Petition Date: November 18, 2002
Bankruptcy Court: United States Bankruptcy Court
Southern District of Ohio
Eastern Division
170 North High Street
Columbus, Ohio 43215
(614) 469-6638
Judge: Donald E. Calhoun, Jr.
LIST THE DEBTORS' 40-LARGEST UNSECURED CREDITORS
-----------------------------------------------------------------
Entity Nature Of Claim Claim Amount
------ --------------- ------------
Bank One Trust Company Indenture Trustee $2,047,500,000
N.A. for secured notes
Darlington Cummings issued by NPF
Corporate Trust XII, Inc.
Account Adm.
OH1-0380
255 West Shrock Road
Westerville, OH 43081
Tel: 614-244-9356
Fax: 614-248-1123
J.P. Morgan Chase Bank Indenture Trustee $924,995,000
Structured Finance for secured notes
450 W. 33rd Street issued by NPF
14th Floor VI, Inc.
New York, NY 1001
Tel: 212-946-8600
Fax: 212-946-8302
Pacific Investment NPF XII, Inc. $283,300,000
Management Company Notes (unsecured
Mohan Phansalkar deficiency claim)
840 Newport Center Dr
Suite 300
Newport, CA 92660
Tel: 949-717-7022
Fax: 949-720-4590
Credit Suisse First NPF XII, Inc. $283,000,000
Boston Corp. Notes (unsecured
Michael Criscito deficiency claim)
New York Branch
11 Madison Avenue
New York, NY 10010
Tel: 646-935-0299
Fax: 212-325-8232
Alliance Capital NPF XII, Inc. $188,500,000
Management Corp. Notes (unsecured
Katalin E. Kutasi deficiency claim)
1345 Avenue of
Americas
38th Floor
New York, NY 10105
Tel: 212-969-1000
Fax: 212-969-6820
III Finance, Ltd. NPF XII, Inc. $180,000,000
Julio Maceira Notes (unsecured
c/o AVM, L.P. deficiency claim)
250 S. Australian Ave.
6th Floor
West Palm Beach
FL 33401
Metropolitan Life NPF XII, Inc. $102,600,000
Insurance Notes (unsecured
Charles Scully deficiency claim)
10 Park Avenue
Morristown, NJ 07962
Tel: 866-226-5638
Tax: 973-254-3052
Ambac Insurance Corp NPF XII, Inc. $54,000,000
Joe Ramos Notes (unsecured
One State Street Plaza deficiency claim)
New York, NY 1004
Tel: 212-607-2200
Fax: 212-797-5272
Lincoln Capital NPF XII, Inc. $49,500,000
Management Co. Notes (unsecured
Rick Schneider deficiency claim)
200 S. Wacker Drive
Suite 2100
Chicago, IL 60606
Tel: 3125592880
Howery, Simon, Arnold $2,147,888
& White, LLP
Gary Hall
1299 Pennsylvania Ave.
NW, Washington, DC
20004-2402
Tel: 202-383-7169
Fax: 202-383-6610
Purcell & Scott, LLP $470,801
Cary Purcell
6035 Memorial Drive
Dublin, OH 43017
Tel: 614-761-9990
Fax: 614-761-9474
Gerbig Snell/Weisheimer $413,566
& Associates
Bill O'Dell
500 Olde Worthington Rd.
Westerville, OH 43082
Tel: 614-643-6471
Fax: 614-848-3477
Westcott Strategic $127,273
Management
Novell, Inc. Trade Debt $121,350
Bricker & Eckler Trade Debt $114,290
Peabody & Arnold LLP Trade Debt $98,225
First Merit Bank Trade Debt $90,676
ISHI Systems Inc. Trade Debt $88,049
Crown Partners Trade Debt $87,991
Expert Technical Trade Debt $67,200
Consultants
Object Ovation, Inc. Trade Debt $61,420
Perlman & Assoc Trade Debt $60,646
Freeman & Mills, Inc. Trade Debt $54,354
CNA Insurance Trade Debt $41,450
SARK Trade Debt $39,842
Norman Reitman Company Trade Debt $36,944
Krivcher Magids PLC Trade Debt $34,917
Leitess, Leitess & Trade Debt $32,294
Friedberg
Insight Trade Debt $30,012
Solutions for Manage- Trade Debt $28,998
ment, Inc.
PricewaterhouseCoopers Trade Debt $27,648
LLP
Deloitte & Touche LLP Trade Debt $25,000
Jeanne Cabral Trade Debt $23,566
Architects
Dell Marketing, Inc. Trade Debt $20,209
Biomar Technologies Trade Debt $20,000
IOS Capital Trade Debt $19,627
Abby Lane Temps, Inc. Trade Debt $17,147
Rockey & Wahl, LLP Trade Debt $15,809
Great Lakes REIT Trade Debt $15,679
Results International Trade Debt $14,500
Systems
The Debtors name these known Sellers as Defendants in this
Adversary Proceeding:
Sellers to NPF XII
------------------
* Lincoln Hospital Medical Center, Inc.
* OrthoRehab, Inc.
* RX Medical Services Corp.
* CHC Clintwood Clinics, Inc.
* CareServices of the Heartland, LLC
* CareServices of South Florida, LLC
* CareServices of the Treasure Coast, LLC
* Mobile Medical Industries, Inc.
* Innovative Services, Inc.
* Emergystate, Inc.
* Med Express LLC
* Emergystat of Sulligent
* Extended Emergency Medical Services, Inc.
* ACCI/Allcare of Pennsylvania, Inc.
* BGI of Brandywine, Inc.
* BGI of St. Tammany, Inc.
* BGI of Pensacola, Inc.
* BGI of South Dakota, Inc.
* Comprehensive of Addiction Programs, Inc.
* Glalax Treatment Center, Inc.
* Stonehenge Convalescent Center, Inc.
* Wilmington Treatment Center, Inc.
* Greater Southeast Community Hospital Corporation I
* Pacifica of the Valley Corporation
* Garland Physicians' Hospital, Ltd.
* Thera-Kinetics, Inc.
* International Philanthropic Hospital Foundation
d/b/a/ Granada Hills Community Hospital
* Korman, LLC
* Living Hope Southwest Medical Services LLC
* Locumtenens Acquisition LLC
* Oak Park, Inc.
* Prime Med Pharmacy Services, Inc.
* Quantum Health
* Rock Glen Healthcare, Inc.
* SCCI Hospitals of America, Inc.
* SCCI Hospital Ventures, Inc.
* SIS Acquisition, LLC
* Safecare Ambulance Services, Inc.
* Braintree Manor Nursing, LLC
* Fall River Nursing LLC
* Hollingsworth Nursing LLC
* South Boston Nursing LLC
* Stoughton Nursing LLC
* PriMed Medical Corporation
* Pain Net Northern California Management Corporation
* National Psychiatric Services, Inc.
* Infusion Management Systems, Inc.
* Aurora Home Care, Inc.
Sellers to NPF VI
-----------------
* Chartwell Pennsylvania, LLC
* Chartwell Diversified Services, Inc.
* Chartwell Southern New England, LLC
* Chartwell Midwest Wisconsin
* Chartwell Home Therapies Limited Partnership
* Chartwell Midwest Indiana, LLC
* Chartwell UC Davis, LLC
* Chartwell Michigan, LLC
* Chartwell Mountain Regional Services
* Chartwell Ohio
* Chartwell Care Givers, Inc.
* Chartwell Care Givers of New York, Inc.
* Atlis Health Services, Inc.
* Hunt Country Home Health, Inc.
* Hunt Country Nursing Services, Inc.
* National Nurses Service, Inc.
* Oak Springs Nursing Home, LP
* ACCI/AllCare, Inc.
* ACCI/AllCare of Massachusetts, Inc.
* Brea Community Hospital
* Michael Reese Medical Center Corporation
* Pacin Healthcare-Hadley Memorial Hospital Corporation
* Highland Behavioral Health Services, Inc.
* Highland Hospital Association
* Lifecare Solutions East, Inc.
* Lifecare Solutions, West, Inc.
* New England Home Therapies, Inc.
* P.N.A.
* Pain Net of Arizona, Inc.
* Pain Net, Inc.
* Rovertown Surgery Center, LLC
* PhyAmerica Correctional Healthcare, Inc.
* Texas NPI, Inc.
* Home Medical of America, Inc.
* Nations Healthcare of California, Inc.
* Nations Healthcare of Florida, Inc.
* Nations Healthcare of Greenville, Inc.
* Nations Healthcare of Northern California, Inc.
Other Sellers
-------------
* Advance Home Medical, Inc.
* AllMed Services, Inc.
* Bay Cities Pharmaceutical Services
* Bayer Restorative Center, Inc.
* Care Home and Healthcare Services, Inc.
* Care Medical Group, Inc.
* Care Nursing Associates
* Consolidated Health Corp. of Pittsburgh, Inc.
* Consolidated Health Corporation Management, Inc.
* Continuecare, Inc.
* Florida Health Plan Management, Inc.
* Habitat Healthcare, Inc. dba Procare Home Health
* Health Care Funding Corp.
* Health Management Southeast, Inc.
* Healthplan Southeast, Inc.
* Interstate Environmental Medical Group, P.S.
* Louisiana Helping Hands, Inc.
* Managed Patient Care
* Med Four, LLC
* Medical Management Consulting Group
* Medimanager, Inc.
* Miami Valley Respiratory Care, Inc.
* National Corrections and Rehabilitation Corporation
* National Rehab of Florida, Inc.
* Nations Healthcare of Tampa Bay, Inc.
* Needham/Hamilton House Convalescent Center, Inc.
* Northern Indiana Interim Healthcare Company, LLC
* Orlando Interim Acquisition Company, LLC
* Pain Control Consultants, Inc.
* Pine Grove Hospital Corporation
* Procare of Tennessee, Inc.
* Quality Health Initiatives, Inc.
* Quality Health Systems, Inc.
* Quality Lifestyles, Inc., dba Quality Lifecare, Inc.
* Quest Staffing Solutions, Inc.
* Robertson Interim Acquisition Company LLC
* Schillinger Emergency Physicians Medical Group, P.C.
* Spectrum Medical Care
* Strongin Health Services Corporation
* Sunrise Regional Medical Center, Ltd.
* Superior Home Health Care of Livingston, Inc.
* Tailored Care, Inc.
* Tampa Interim Acquisition Company, LLC
* Tennessee Homecare, Inc.
* The Nurses Station of America, Inc.
* Triad Health Management of Georgia, LLC
and name the five Lockbox Custodians as Defendants in their
lawsuit:
* Huntington National Bank
* Wachovia Bank, NA
* PNC Bank
* Bank of America
* Bank One, NA
Without this injunctive relief, Judge Calhoun sees, the Debtors
face an immediate and substantial threat to the preservation of
their estates' going-concern value and an unwarranted and
irreversible dissipation of their estates. Accordingly, Judge
Calhoun issued a Temporary Restraining Order at a hearing
yesterday in Columbus. The Court directs each Defendant to file
an Answer to the Debtors' Complaint by December 18, 2002, and
will convene a hearing thereafter to consider entry of a
permanent injunction.
*** End of Issue No. 1 ***
NCFE: Death-Dealing Side of the Bubbleby John Hoefle
As a private company not required to make public filings with the Securities and Exchange Commission, much about NCFE remains shrouded in secrecy. But one can tell a lot by looking at its board, which consisted of four of the company's founders and two executives of J.P. Morgan Chase, which controls 16% of the company through its Beacon Group III private equity fund. In addition, Morgan Chase and Bank One are trustees for NCFE's bond trusts. The bonds themselves were underwritten by Crédit Suisse First Boston, the investment-banking arm of Switzerland's Crédit Suisse banking/insurance giant. The top purchasers of the bonds included PIMCO, the world's largest bond fund and a subsidiary of insurer Allianz, the world's third-largest financial institution; Alliance Capital Management, an arm of French insurance giant Axa; and ING, the Dutch insurance/banking conglomerate.
It is this combination of monetary policy, deregulation and financial asset-grabbing which created the dot.com bubble, the related telecom bubble, and the Enron/energy pirates' Wall Street bubble; all of which have subsequently exploded and are now revealed to be what LaRouche had said they were—scams. Now, with the bankruptcy of NCFE, another aspect of this post-1998 looting comes out of the shadows and into the light.
The Asset-Backed Securities Danger
NCFE was basically a financial "factor," advancing cash to hospitals, physicians, and other health-care facilities in exchange for their receivables—the delayed payments made by insurance companies and government agencies for patients' treatment. NCFE would place these receivables into pools, then issue derivative securities—known as asset-backed securities—backed by the expected insurance payments.
All in all, NCFE appears to fit the profile of a looting operation, whose existence served mainly to divert a portion of the health-care income stream into the pockets of some of the biggest financial institutions in the world. Now it has collapsed, leaving a bankruptcy wave which is now spreading among medical providers, with disastrous consequences for the health-care system and its patients.
NCFE serves about 100 healthcare providers nationwide, including hospitals, nursing homes, home healthcare agencies, specialty clinic physician groups, durable medical equipment providers, laboratories and other disciplines within the healthcare
industry. NCFE buys medical providers' bills at a discount (reportedly up to 20% after various fees), securitize those receivables and sell bonds to institutional and other investors.
Collections and insurance reimbursements, in turn, pay down the
bonds. The excess of collections over what it pays to buy the
receivables is NCFE's income. Healthcare providers, when NCFE
pays, receive the benefit of immediate cash to fund their
operations without having to wait for reimbursement.
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
(c) an Equity Reserve Account, supposed to have a $217
million deposit on Oct. 1, only had $10 million on
deposit.
When those facts bubbled to the surface, Bank One ran to the
state and federal courts in Ohio seeking appointment of a
Receiver and prompted agents from the Federal Bureau of
Investigation to descend on NCFE's corporate offices.
Lance Poulsen, the Company's founder, has resigned as chairman
and chief executive. The Company's workforce has fallen from 325
to 103 this week. The Company's main office is located in
Dublin, Ohio, and maintains three regional offices in Scottsdale,
Arizona; Durham, North Carolina; and Port Charlotte, Florida.
NATIONAL CENTURY DEBTORS' CHAPTER 11 DATABASE
-----------------------------------------------------------------
Debtor entites filing separate chapter 11 petitions:
Entity Case No.
------ --------
National Century Financial Enterprises Inc. 02-65235
NPF XII Inc. 02-65236
National Premier Financial Services Inc. 02-65237
NPF VI Inc. 02-65238
Memorial Drive Office Complex LLC 02-65239
National Physicians Funding II Inc. 02-65240
Anesthesia Solutions Inc. 02-65241
NPF-CSL Inc. 02-65242
NPF-LL Inc. 02-65243
NPF-SPL Inc. 02-65244
NPF X Inc. 02-65245
NPF Capital Partners Inc. 02-65246
NPF Capital Inc. 02-65247
NCFE.com Inc. 02-65248
Chapter 11 Petition Date: November 18, 2002
Bankruptcy Court: United States Bankruptcy Court
Southern District of Ohio
Eastern Division
170 North High Street
Columbus, Ohio 43215
(614) 469-6638
Judge: Donald E. Calhoun, Jr.
LIST THE DEBTORS' 40-LARGEST UNSECURED CREDITORS
-----------------------------------------------------------------
Entity Nature Of Claim Claim Amount
------ --------------- ------------
Bank One Trust Company Indenture Trustee $2,047,500,000
N.A. for secured notes
Darlington Cummings issued by NPF
Corporate Trust XII, Inc.
Account Adm.
OH1-0380
255 West Shrock Road
Westerville, OH 43081
Tel: 614-244-9356
Fax: 614-248-1123
J.P. Morgan Chase Bank Indenture Trustee $924,995,000
Structured Finance for secured notes
450 W. 33rd Street issued by NPF
14th Floor VI, Inc.
New York, NY 1001
Tel: 212-946-8600
Fax: 212-946-8302
Pacific Investment NPF XII, Inc. $283,300,000
Management Company Notes (unsecured
Mohan Phansalkar deficiency claim)
840 Newport Center Dr
Suite 300
Newport, CA 92660
Tel: 949-717-7022
Fax: 949-720-4590
Credit Suisse First NPF XII, Inc. $283,000,000
Boston Corp. Notes (unsecured
Michael Criscito deficiency claim)
New York Branch
11 Madison Avenue
New York, NY 10010
Tel: 646-935-0299
Fax: 212-325-8232
Alliance Capital NPF XII, Inc. $188,500,000
Management Corp. Notes (unsecured
Katalin E. Kutasi deficiency claim)
1345 Avenue of
Americas
38th Floor
New York, NY 10105
Tel: 212-969-1000
Fax: 212-969-6820
III Finance, Ltd. NPF XII, Inc. $180,000,000
Julio Maceira Notes (unsecured
c/o AVM, L.P. deficiency claim)
250 S. Australian Ave.
6th Floor
West Palm Beach
FL 33401
Metropolitan Life NPF XII, Inc. $102,600,000
Insurance Notes (unsecured
Charles Scully deficiency claim)
10 Park Avenue
Morristown, NJ 07962
Tel: 866-226-5638
Tax: 973-254-3052
Ambac Insurance Corp NPF XII, Inc. $54,000,000
Joe Ramos Notes (unsecured
One State Street Plaza deficiency claim)
New York, NY 1004
Tel: 212-607-2200
Fax: 212-797-5272
Lincoln Capital NPF XII, Inc. $49,500,000
Management Co. Notes (unsecured
Rick Schneider deficiency claim)
200 S. Wacker Drive
Suite 2100
Chicago, IL 60606
Tel: 3125592880
Howery, Simon, Arnold $2,147,888
& White, LLP
Gary Hall
1299 Pennsylvania Ave.
NW, Washington, DC
20004-2402
Tel: 202-383-7169
Fax: 202-383-6610
Purcell & Scott, LLP $470,801
Cary Purcell
6035 Memorial Drive
Dublin, OH 43017
Tel: 614-761-9990
Fax: 614-761-9474
Gerbig Snell/Weisheimer $413,566
& Associates
Bill O'Dell
500 Olde Worthington Rd.
Westerville, OH 43082
Tel: 614-643-6471
Fax: 614-848-3477
Westcott Strategic $127,273
Management
Novell, Inc. Trade Debt $121,350
Bricker & Eckler Trade Debt $114,290
Peabody & Arnold LLP Trade Debt $98,225
First Merit Bank Trade Debt $90,676
ISHI Systems Inc. Trade Debt $88,049
Crown Partners Trade Debt $87,991
Expert Technical Trade Debt $67,200
Consultants
Object Ovation, Inc. Trade Debt $61,420
Perlman & Assoc Trade Debt $60,646
Freeman & Mills, Inc. Trade Debt $54,354
CNA Insurance Trade Debt $41,450
SARK Trade Debt $39,842
Norman Reitman Company Trade Debt $36,944
Krivcher Magids PLC Trade Debt $34,917
Leitess, Leitess & Trade Debt $32,294
Friedberg
Insight Trade Debt $30,012
Solutions for Manage- Trade Debt $28,998
ment, Inc.
PricewaterhouseCoopers Trade Debt $27,648
LLP
Deloitte & Touche LLP Trade Debt $25,000
Jeanne Cabral Trade Debt $23,566
Architects
Dell Marketing, Inc. Trade Debt $20,209
Biomar Technologies Trade Debt $20,000
IOS Capital Trade Debt $19,627
Abby Lane Temps, Inc. Trade Debt $17,147
Rockey & Wahl, LLP Trade Debt $15,809
Great Lakes REIT Trade Debt $15,679
Results International Trade Debt $14,500
Systems
The Debtors name these known Sellers as Defendants in this
Adversary Proceeding:
Sellers to NPF XII
------------------
* Lincoln Hospital Medical Center, Inc.
* OrthoRehab, Inc.
* RX Medical Services Corp.
* CHC Clintwood Clinics, Inc.
* CareServices of the Heartland, LLC
* CareServices of South Florida, LLC
* CareServices of the Treasure Coast, LLC
* Mobile Medical Industries, Inc.
* Innovative Services, Inc.
* Emergystate, Inc.
* Med Express LLC
* Emergystat of Sulligent
* Extended Emergency Medical Services, Inc.
* ACCI/Allcare of Pennsylvania, Inc.
* BGI of Brandywine, Inc.
* BGI of St. Tammany, Inc.
* BGI of Pensacola, Inc.
* BGI of South Dakota, Inc.
* Comprehensive of Addiction Programs, Inc.
* Glalax Treatment Center, Inc.
* Stonehenge Convalescent Center, Inc.
* Wilmington Treatment Center, Inc.
* Greater Southeast Community Hospital Corporation I
* Pacifica of the Valley Corporation
* Garland Physicians' Hospital, Ltd.
* Thera-Kinetics, Inc.
* International Philanthropic Hospital Foundation
d/b/a/ Granada Hills Community Hospital
* Korman, LLC
* Living Hope Southwest Medical Services LLC
* Locumtenens Acquisition LLC
* Oak Park, Inc.
* Prime Med Pharmacy Services, Inc.
* Quantum Health
* Rock Glen Healthcare, Inc.
* SCCI Hospitals of America, Inc.
* SCCI Hospital Ventures, Inc.
* SIS Acquisition, LLC
* Safecare Ambulance Services, Inc.
* Braintree Manor Nursing, LLC
* Fall River Nursing LLC
* Hollingsworth Nursing LLC
* South Boston Nursing LLC
* Stoughton Nursing LLC
* PriMed Medical Corporation
* Pain Net Northern California Management Corporation
* National Psychiatric Services, Inc.
* Infusion Management Systems, Inc.
* Aurora Home Care, Inc.
Sellers to NPF VI
-----------------
* Chartwell Pennsylvania, LLC
* Chartwell Diversified Services, Inc.
* Chartwell Southern New England, LLC
* Chartwell Midwest Wisconsin
* Chartwell Home Therapies Limited Partnership
* Chartwell Midwest Indiana, LLC
* Chartwell UC Davis, LLC
* Chartwell Michigan, LLC
* Chartwell Mountain Regional Services
* Chartwell Ohio
* Chartwell Care Givers, Inc.
* Chartwell Care Givers of New York, Inc.
* Atlis Health Services, Inc.
* Hunt Country Home Health, Inc.
* Hunt Country Nursing Services, Inc.
* National Nurses Service, Inc.
* Oak Springs Nursing Home, LP
* ACCI/AllCare, Inc.
* ACCI/AllCare of Massachusetts, Inc.
* Brea Community Hospital
* Michael Reese Medical Center Corporation
* Pacin Healthcare-Hadley Memorial Hospital Corporation
* Highland Behavioral Health Services, Inc.
* Highland Hospital Association
* Lifecare Solutions East, Inc.
* Lifecare Solutions, West, Inc.
* New England Home Therapies, Inc.
* P.N.A.
* Pain Net of Arizona, Inc.
* Pain Net, Inc.
* Rovertown Surgery Center, LLC
* PhyAmerica Correctional Healthcare, Inc.
* Texas NPI, Inc.
* Home Medical of America, Inc.
* Nations Healthcare of California, Inc.
* Nations Healthcare of Florida, Inc.
* Nations Healthcare of Greenville, Inc.
* Nations Healthcare of Northern California, Inc.
Other Sellers
-------------
* Advance Home Medical, Inc.
* AllMed Services, Inc.
* Bay Cities Pharmaceutical Services
* Bayer Restorative Center, Inc.
* Care Home and Healthcare Services, Inc.
* Care Medical Group, Inc.
* Care Nursing Associates
* Consolidated Health Corp. of Pittsburgh, Inc.
* Consolidated Health Corporation Management, Inc.
* Continuecare, Inc.
* Florida Health Plan Management, Inc.
* Habitat Healthcare, Inc. dba Procare Home Health
* Health Care Funding Corp.
* Health Management Southeast, Inc.
* Healthplan Southeast, Inc.
* Interstate Environmental Medical Group, P.S.
* Louisiana Helping Hands, Inc.
* Managed Patient Care
* Med Four, LLC
* Medical Management Consulting Group
* Medimanager, Inc.
* Miami Valley Respiratory Care, Inc.
* National Corrections and Rehabilitation Corporation
* National Rehab of Florida, Inc.
* Nations Healthcare of Tampa Bay, Inc.
* Needham/Hamilton House Convalescent Center, Inc.
* Northern Indiana Interim Healthcare Company, LLC
* Orlando Interim Acquisition Company, LLC
* Pain Control Consultants, Inc.
* Pine Grove Hospital Corporation
* Procare of Tennessee, Inc.
* Quality Health Initiatives, Inc.
* Quality Health Systems, Inc.
* Quality Lifestyles, Inc., dba Quality Lifecare, Inc.
* Quest Staffing Solutions, Inc.
* Robertson Interim Acquisition Company LLC
* Schillinger Emergency Physicians Medical Group, P.C.
* Spectrum Medical Care
* Strongin Health Services Corporation
* Sunrise Regional Medical Center, Ltd.
* Superior Home Health Care of Livingston, Inc.
* Tailored Care, Inc.
* Tampa Interim Acquisition Company, LLC
* Tennessee Homecare, Inc.
* The Nurses Station of America, Inc.
* Triad Health Management of Georgia, LLC
and name the five Lockbox Custodians as Defendants in their
lawsuit:
* Huntington National Bank
* Wachovia Bank, NA
* PNC Bank
* Bank of America
* Bank One, NA
Without this injunctive relief, Judge Calhoun sees, the Debtors
face an immediate and substantial threat to the preservation of
their estates' going-concern value and an unwarranted and
irreversible dissipation of their estates. Accordingly, Judge
Calhoun issued a Temporary Restraining Order at a hearing
yesterday in Columbus. The Court directs each Defendant to file
an Answer to the Debtors' Complaint by December 18, 2002, and
will convene a hearing thereafter to consider entry of a
permanent injunction.
*** End of Issue No. 1 ***
National Century Financial Enterprises, Inc., J.P. Morgan Chase, Morgan Chase and Bank One
"...two executives of J.P. Morgan Chase, which controls 16% of the company through its Beacon Group III private equity fund. In addition, Morgan Chase and Bank One are trustees for NCFE's bond trusts."
NCFE: Death-Dealing Side of the Bubble
by John Hoefle
As a private company not required to make public filings with the Securities and Exchange Commission, much about NCFE remains shrouded in secrecy. But one can tell a lot by looking at its board, which consisted of four of the company's founders and two executives of J.P. Morgan Chase, which controls 16% of the company through its Beacon Group III private equity fund. In addition, Morgan Chase and Bank One are trustees for NCFE's bond trusts. All in all, NCFE appears to fit the profile of a looting operation, whose existence served mainly to divert a portion of the health-care income stream into the pockets of some of the biggest financial
I believe someone needs to address the' PONZI Scheme' that was created with Health care finance.
NCFE, National Century Financial Enterprises, Inc., was a private Healthcare FINANCIAL company, the largest 'private' bankruptcy and dubbed by Federal Prosecutors in Columbus Ohio 'larger than Enron'.
NCFE: Death-Dealing Side of the Bubble
by John Hoefle
As a private company not required to make public filings with the Securities and Exchange Commission, much about NCFE remains shrouded in secrecy. But one can tell a lot by looking at its board, which consisted of four of the company's founders and two executives of J.P. Morgan Chase, which controls 16% of the company through its Beacon Group III private equity fund. In addition, Morgan Chase and Bank One are trustees for NCFE's bond trusts.
NCFE: Death-Dealing Side of the Bubble
by John Hoefle
As a private company not required to make public filings with the Securities and Exchange Commission, much about NCFE remains shrouded in secrecy. But one can tell a lot by looking at its board, which consisted of four of the company's founders and two executives of J.P. Morgan Chase, which controls 16% of the company through its Beacon Group III private equity fund. In addition, Morgan Chase and Bank One are trustees for NCFE's bond trusts. All in all, NCFE appears to fit the profile of a looting operation, whose existence served mainly to divert a portion of the health-care income stream into the pockets of some of the biggest financial
I believe someone needs to address the' PONZI Scheme' that was created with Health care finance.
NCFE, National Century Financial Enterprises, Inc., was a private Healthcare FINANCIAL company, the largest 'private' bankruptcy and dubbed by Federal Prosecutors in Columbus Ohio 'larger than Enron'.
NCFE: Death-Dealing Side of the Bubble
by John Hoefle
As a private company not required to make public filings with the Securities and Exchange Commission, much about NCFE remains shrouded in secrecy. But one can tell a lot by looking at its board, which consisted of four of the company's founders and two executives of J.P. Morgan Chase, which controls 16% of the company through its Beacon Group III private equity fund. In addition, Morgan Chase and Bank One are trustees for NCFE's bond trusts.
Tuesday, September 23, 2008
‘The Rise and Fall of America" JPMorgan Chase CEO and chair James Dimon
Economic Panel: Greenspan, Buffett, Paulson, Rubin, Volker, Levitt, Bloomberg
April 19, 2007
Christopher Bjorke, AFP
April 19,2007
"...addressing the health of U.S. capital markets.."
“If they write a book called, ‘The Rise and Fall of America,’ the fall would be from the legal system,” said JPMorgan Chase CEO and chair James Dimon, who called class-action suits “one-sided crap shoots” that mostly benefit outside lawyers.
“Where is the balance between hobbling the U.S. economy in a more competitive global marketplace and protecting investors from another Enron?”
Immelt said. “But is it in the best interest of the investors?”
Buffett was talking about the intensity of focus investors and regulators should bring to their scrutiny of companies
“In my judgment, we must rise above a rules-based mindset that asks, ‘Is this legal?’ and adopt a more principles-based approach that asks, ‘Is this right?’ ” Paulson said, according to a transcript from Treasury.
Buffett, Greenspan and Paulson were just a few of the big names at a U.S. Treasury conference addressing the health of U.S. capital markets. With SOX, IFRS and lawsuits, they had plenty to talk about.
A gathering of economic and financial superstardom in Washington, D.C., in March revealed a number of opinions from notables past and present.
Former Treasury Secretary Robert Rubin thinks Sarbanes-Oxley places too much liability on CEOs.
New York Mayor Michael Bloomberg believes future competitiveness requires increased immigration and better schools.
Legendary investor Warren Buffett really likes reading financial statements.
“I have an enthusiasm for reading reports. It’s like a teenager reading Playboy,” Buffett said, drawing the biggest laugh of the federal Treasury’s Conference on U.S. Capital Markets Competitiveness. “At 76, you have to get excited about something.”
Buffett was talking about the intensity of focus investors and regulators should bring to their scrutiny of companies. He and his fellow panelists met to bring their collective wisdom and experience to the question of American competitiveness in capital markets.
Current Secretary of Treasury Henry Paulson, recently returned from the latest travels in his campaign to influence Chinese economic policies, hosted the public panel discussions by the most famous and influential players in economics. Other names worthy of E.F. Hutton-type attentiveness were Alan Greenspan, Paul Volker, Arthur Levitt and Jeffrey Immelt, to name only a few.
And the question their discussions frequently came down to was, “Where is the balance between hobbling the U.S. economy in a more competitive global marketplace and protecting investors from another Enron?”
SOX and suits
U.S. companies are “digesting” regulations like Sarbanes-Oxley, Buffett said, though they have “no choice but to digest what’s being served up. ... Most of my friends are not pleased, but they, in a way, brought it on themselves.”
Since “Enron” became a byword for corporate chicanery rather than an energy company, executives in public companies have paid for the misdeeds of others, and questioned the burden of regulations like Sarbanes-Oxley and their effects on the strength of U.S. companies internationally.
“Having high standards is not a bad thing for business,” said Immelt, General Electric’s chief executive and board chair. Like other panelists, he showed an unwillingness to discount the ability of American business to adapt to a changing environment.
“Whatever the regulation is today, I can win. I can win in China, I can win in India,” Immelt said. “But is it in the best interest of the investors?”
The panelists, however, did not hesitate to discuss their frustration with audit committees, SOX 404 requirements and the threat of litigation.
“I think I’d be scared to death to sign one of these things now,” in light of the lawsuits an incorrect SOX 404 statement could bring, said former Treasury Secretary Robert Rubin.
Lawsuits and the jackpot mentality behind some litigation came in for a good share of the panelists’ ire, perhaps more so than the more politically sensitive Sarbanes-Oxley.
“If they write a book called, ‘The Rise and Fall of America,’ the fall would be from the legal system,” said JPMorgan Chase CEO and chair James Dimon, who called class-action suits “one-sided crap shoots” that mostly benefit outside lawyers.
International rules, competition
Beyond the internal regulations and legal system of the United States is the fact that it is not alone in the world as much as it was in the past. Other countries’ economies have grown up and so have international capital markets and the day when all international companies had to play by American rules—and Generally Accepted Accounting Principles—has passed.
Paulson in his opening statement broached the differences between the rules-based U.S. standards and the principles-based international standards.
“In my judgment, we must rise above a rules-based mindset that asks, ‘Is this legal?’ and adopt a more principles-based approach that asks, ‘Is this right?’ ” Paulson said, according to a transcript from Treasury.
Securities and Exchange Commission Chairman Christopher Cox, Paulson’s co-chair on the conference’s panels, put the rules/principles dichotomy another way.
“It’s ‘like tastes great, less filling.’ Everybody wants both,” Cox said. “Enron taught us that following rules punctiliously is not necessarily the way to truth.”
Former Federal Reserve Chairman Paul Volker said American adherence to its standards was out of step with companies.
“An overwhelming number of companies big and small are adopting IFRS,” he said. “The U.S. is going to be left behind.”
A frequent statistic meant to instill in business people and policy-makers a healthy fear of over-regulation is the issue of companies choosing to list on overseas equity markets and the shift of public companies to private ownership. Not all the panelists were convinced that complex U.S. rules were driving a trend.
According to former SEC chair Arthur Levitt, now an advisor to the Carlyle Group, companies listing overseas were merely a result of other countries mimicking American financial services, “the greatest export the U.S. has had.”
“It doesn’t make any difference in terms of jobs and basic business,” Levitt said.
Immelt and others said companies going private may be just a passing fad.
“We’re at a moment in time where that’s being played up as the nirvana of business.”
Bloomberg and Greenspan both took a long view on the economy, citing big-picture concerns such as immigration restrictions, poor education and wide income disparity as threats to the economy.
As for the more immediate regulatory concerns of the panel, opinions stayed on a theme: Laws are fine as long there is balance and clarity.
As Bloomberg expressed it, “Just tell us what the law is and we can compete.”
Copyright © 2007 Association for Financial Professionals. All Rights Reserved.
April 19, 2007
Christopher Bjorke, AFP
April 19,2007
"...addressing the health of U.S. capital markets.."
“If they write a book called, ‘The Rise and Fall of America,’ the fall would be from the legal system,” said JPMorgan Chase CEO and chair James Dimon, who called class-action suits “one-sided crap shoots” that mostly benefit outside lawyers.
“Where is the balance between hobbling the U.S. economy in a more competitive global marketplace and protecting investors from another Enron?”
Immelt said. “But is it in the best interest of the investors?”
Buffett was talking about the intensity of focus investors and regulators should bring to their scrutiny of companies
“In my judgment, we must rise above a rules-based mindset that asks, ‘Is this legal?’ and adopt a more principles-based approach that asks, ‘Is this right?’ ” Paulson said, according to a transcript from Treasury.
Buffett, Greenspan and Paulson were just a few of the big names at a U.S. Treasury conference addressing the health of U.S. capital markets. With SOX, IFRS and lawsuits, they had plenty to talk about.
A gathering of economic and financial superstardom in Washington, D.C., in March revealed a number of opinions from notables past and present.
Former Treasury Secretary Robert Rubin thinks Sarbanes-Oxley places too much liability on CEOs.
New York Mayor Michael Bloomberg believes future competitiveness requires increased immigration and better schools.
Legendary investor Warren Buffett really likes reading financial statements.
“I have an enthusiasm for reading reports. It’s like a teenager reading Playboy,” Buffett said, drawing the biggest laugh of the federal Treasury’s Conference on U.S. Capital Markets Competitiveness. “At 76, you have to get excited about something.”
Buffett was talking about the intensity of focus investors and regulators should bring to their scrutiny of companies. He and his fellow panelists met to bring their collective wisdom and experience to the question of American competitiveness in capital markets.
Current Secretary of Treasury Henry Paulson, recently returned from the latest travels in his campaign to influence Chinese economic policies, hosted the public panel discussions by the most famous and influential players in economics. Other names worthy of E.F. Hutton-type attentiveness were Alan Greenspan, Paul Volker, Arthur Levitt and Jeffrey Immelt, to name only a few.
And the question their discussions frequently came down to was, “Where is the balance between hobbling the U.S. economy in a more competitive global marketplace and protecting investors from another Enron?”
SOX and suits
U.S. companies are “digesting” regulations like Sarbanes-Oxley, Buffett said, though they have “no choice but to digest what’s being served up. ... Most of my friends are not pleased, but they, in a way, brought it on themselves.”
Since “Enron” became a byword for corporate chicanery rather than an energy company, executives in public companies have paid for the misdeeds of others, and questioned the burden of regulations like Sarbanes-Oxley and their effects on the strength of U.S. companies internationally.
“Having high standards is not a bad thing for business,” said Immelt, General Electric’s chief executive and board chair. Like other panelists, he showed an unwillingness to discount the ability of American business to adapt to a changing environment.
“Whatever the regulation is today, I can win. I can win in China, I can win in India,” Immelt said. “But is it in the best interest of the investors?”
The panelists, however, did not hesitate to discuss their frustration with audit committees, SOX 404 requirements and the threat of litigation.
“I think I’d be scared to death to sign one of these things now,” in light of the lawsuits an incorrect SOX 404 statement could bring, said former Treasury Secretary Robert Rubin.
Lawsuits and the jackpot mentality behind some litigation came in for a good share of the panelists’ ire, perhaps more so than the more politically sensitive Sarbanes-Oxley.
“If they write a book called, ‘The Rise and Fall of America,’ the fall would be from the legal system,” said JPMorgan Chase CEO and chair James Dimon, who called class-action suits “one-sided crap shoots” that mostly benefit outside lawyers.
International rules, competition
Beyond the internal regulations and legal system of the United States is the fact that it is not alone in the world as much as it was in the past. Other countries’ economies have grown up and so have international capital markets and the day when all international companies had to play by American rules—and Generally Accepted Accounting Principles—has passed.
Paulson in his opening statement broached the differences between the rules-based U.S. standards and the principles-based international standards.
“In my judgment, we must rise above a rules-based mindset that asks, ‘Is this legal?’ and adopt a more principles-based approach that asks, ‘Is this right?’ ” Paulson said, according to a transcript from Treasury.
Securities and Exchange Commission Chairman Christopher Cox, Paulson’s co-chair on the conference’s panels, put the rules/principles dichotomy another way.
“It’s ‘like tastes great, less filling.’ Everybody wants both,” Cox said. “Enron taught us that following rules punctiliously is not necessarily the way to truth.”
Former Federal Reserve Chairman Paul Volker said American adherence to its standards was out of step with companies.
“An overwhelming number of companies big and small are adopting IFRS,” he said. “The U.S. is going to be left behind.”
A frequent statistic meant to instill in business people and policy-makers a healthy fear of over-regulation is the issue of companies choosing to list on overseas equity markets and the shift of public companies to private ownership. Not all the panelists were convinced that complex U.S. rules were driving a trend.
According to former SEC chair Arthur Levitt, now an advisor to the Carlyle Group, companies listing overseas were merely a result of other countries mimicking American financial services, “the greatest export the U.S. has had.”
“It doesn’t make any difference in terms of jobs and basic business,” Levitt said.
Immelt and others said companies going private may be just a passing fad.
“We’re at a moment in time where that’s being played up as the nirvana of business.”
Bloomberg and Greenspan both took a long view on the economy, citing big-picture concerns such as immigration restrictions, poor education and wide income disparity as threats to the economy.
As for the more immediate regulatory concerns of the panel, opinions stayed on a theme: Laws are fine as long there is balance and clarity.
As Bloomberg expressed it, “Just tell us what the law is and we can compete.”
Copyright © 2007 Association for Financial Professionals. All Rights Reserved.
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