WHERE IS JAMES K HAPP?
The ex-Executive of Richard Rainwater's Columbia Homecare Group, NCFE and Med Diversifired! Why does he go last? Who does he know?
National Century's bad loans total $1,297,721,675
Wednesday, October 8, 2008 3:04 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Federal authorities have long asserted that National Century Financial Enterprises' $1.9 billion in losses could largely be blamed on unsecured loans being doled out, one after another.
Yesterday, prosecutors quantified for jurors just what those loans totaled in the last four years of the company's operation -- down to the penny.
National Century executives gave $1,297,721,675.28 in unsecured loans to six companies they either owned or had a significant financial stake in, FBI Special Agent Jeffrey Williams testified yesterday at former Chief Executive Lance K. Poulsen's fraud trial.
There was no collateral to secure the loans, hence, no likelihood that they would be repaid, Williams said.
Poulsen, 65, one of three founders of National Century, is being tried in U.S. District Court in Columbus on fraud charges stemming from the company's November 2002 collapse.
The company's two other founders, Rebecca S. Parrett and Donald H. Ayers, were convicted of fraud in March. Ayers, 72, is serving a 15-year sentence. Parrett disappeared while free on bond and remains at large.
The FBI agent's testimony yesterday came after Judge Algenon L. Marbley suggested that one of Poulsen's defense attorneys, John E. Haller, recuse himself from questioning a witness.
Haller was an attorney for Purcell & Scott, a law firm that represented National Century until the company filed for bankruptcy. He also helped represent Home Healthcare of America, a client of National Century's, when a medical supplier sued Home Health and National Century in 1999.
When Assistant U.S. Attorney Doug Squires announced that he would call Home Healthcare's former Chief Executive Craig Porter as a witness, Marbley said Haller could not cross-examine him because that would be a conflict of interest.
He gave Poulsen's two other defense attorneys two hours to prepare, a time window that did not please Poulsen.
"This is a matter critical to my defense," Poulsen said. "I see how this protects Mr. Porter's rights. But I don't see how this protects my rights, and I'm on trial here."
Marbley ended the discussion, saying, "One of the things the court advised you at the outset was the conflict of Mr. Haller, but you waived that. Now this is a consequence of your waiver."
Porter testified that his company acquired home health-care companies and was owned by a company whose principal shareholders were Poulsen, Ayers and Parrett.
Despite National Century's loans, Home Healthcare still struggled, Porter testified.
"The company was really hemorrhaging cash and struggling as a company. It had a hard time paying its bills," Porter said.
jandes@dispatch.com
Showing posts with label McCain's Healthcare. Show all posts
Showing posts with label McCain's Healthcare. Show all posts
Saturday, October 18, 2008
Tuesday, October 7, 2008
decade-long fraud at National Century
"Bily said she knew of nearly $1 billion that had been illegally advanced to clients by August 2002, six of which were owned by Poulsen."
nearly decade-long fraud at National Century that resulted in more than $2.84 billion in investor funds going missing when the company collapsed into bankruptcy in 2002.
Monday, October 6, 2008 - 5:38 PM EDT |
Modified: Tuesday, October 7, 2008 - 8:00 AM
National Century exec kept documents detailing alleged fraud
Business First of Columbus - by Kevin Kemper
Worried about the exposure of those in her department to criminal charges, a National Century Financial Enterprises Inc. finance executive kept copies of company documents in her basement to share with investigators if they ever came calling.
Jessica Bily, the former associate vice president of funding at National Century, told jurors who will decide the fate of her former boss Lance Poulsen that she decided to copy documents that detailed allegedly illegal payments to clients so she and her employees would be protected in case a criminal probe was ever launched.
From her vantage point at the center of National Century’s finance department, testified she watched as superiors directed employees to shift funds among accounts to hide shortfalls, make Bily multimillion-dollar advances to some clients in violation of its agreements with investors, and change data in investor reports to avoid raising red flags.
Bily testified Thursday at the criminal fraud trial of Poulsen, the 65-year-old founder and former CEO of Dublin-based National Century. The government has accused Poulsen of running a nearly decade-long fraud at National Century that resulted in more than $2.84 billion in investor funds going missing when the company collapsed into bankruptcy in 2002.
Poulsen is standing trial in U.S. District Court in Columbus on securities fraud, wire fraud and money laundering charges. He has pleaded not guilty to all charges.
Bily, who began at National Century after college and rose to become a senior executive, testified that advances approved by Poulsen concerned her so much that she kept her own set of records on the advances at home. She guided the jury through several documents she had created to track the funding. She showed jurors how one company, owned in part by Poulsen and National Century cofounders Donald Ayers and Rebecca Parrett, received more than $7.8 million for operating expenses and more than $7.8 million for its real estate investment trust in the span of less than a week.
Those transactions, Bily said, were not allowed under National Century’s master indenture agreement, a governing document that defined for investors how the company operated.
Bily said she knew of nearly $1 billion that had been illegally advanced to clients by August 2002, six of which were owned by Poulsen.On cross-examination, William Terpening, Poulsen’s attorney, attempted to draw doubt in jurors’ minds by asking Bily about her education and her contact with Poulsen.
Bily graduated from Wright State University in Dayton in 1994 with degree in English. Until she worked at National Century, she had no training in finance.
Terpening also asked Bily if she had ever read National Century’s governing documents, such as its master indenture agreement, sale and subservicing agreement and private placement memorandum. Bily admitted she had only read a sample sale and subservicing agreement, a document that governed how National Century worked with the health-care providers it financed. When she had questions about other aspects of the business, Bily said she would turn to her superiors for answers.
Bily said she was too intimidated to express her opinions on National Century’s allegedly illegal actions to Poulsen. Instead, Bily said she would relay her concerns to her immediate supervisors.
Terpening also questioned Bily about her cooperation with the government. She admitted that she reached out to help investigators in early 2003, but at the behest of her attorney. Bily also said she went through National Century’s computer network to find documents that would be helpful to the government. On some of those documents, Bily attached explanations of what Poulsen was trying to accomplish.
But Terpening reminded Bily that she and Poulsen didn’t talk together about strategy, and asked why she thought she knew what Poulsen’s intentions were. Bily said she thought it was obvious what Poulsen was trying to do.
nearly decade-long fraud at National Century that resulted in more than $2.84 billion in investor funds going missing when the company collapsed into bankruptcy in 2002.
Monday, October 6, 2008 - 5:38 PM EDT |
Modified: Tuesday, October 7, 2008 - 8:00 AM
National Century exec kept documents detailing alleged fraud
Business First of Columbus - by Kevin Kemper
Worried about the exposure of those in her department to criminal charges, a National Century Financial Enterprises Inc. finance executive kept copies of company documents in her basement to share with investigators if they ever came calling.
Jessica Bily, the former associate vice president of funding at National Century, told jurors who will decide the fate of her former boss Lance Poulsen that she decided to copy documents that detailed allegedly illegal payments to clients so she and her employees would be protected in case a criminal probe was ever launched.
From her vantage point at the center of National Century’s finance department, testified she watched as superiors directed employees to shift funds among accounts to hide shortfalls, make Bily multimillion-dollar advances to some clients in violation of its agreements with investors, and change data in investor reports to avoid raising red flags.
Bily testified Thursday at the criminal fraud trial of Poulsen, the 65-year-old founder and former CEO of Dublin-based National Century. The government has accused Poulsen of running a nearly decade-long fraud at National Century that resulted in more than $2.84 billion in investor funds going missing when the company collapsed into bankruptcy in 2002.
Poulsen is standing trial in U.S. District Court in Columbus on securities fraud, wire fraud and money laundering charges. He has pleaded not guilty to all charges.
Bily, who began at National Century after college and rose to become a senior executive, testified that advances approved by Poulsen concerned her so much that she kept her own set of records on the advances at home. She guided the jury through several documents she had created to track the funding. She showed jurors how one company, owned in part by Poulsen and National Century cofounders Donald Ayers and Rebecca Parrett, received more than $7.8 million for operating expenses and more than $7.8 million for its real estate investment trust in the span of less than a week.
Those transactions, Bily said, were not allowed under National Century’s master indenture agreement, a governing document that defined for investors how the company operated.
Bily said she knew of nearly $1 billion that had been illegally advanced to clients by August 2002, six of which were owned by Poulsen.On cross-examination, William Terpening, Poulsen’s attorney, attempted to draw doubt in jurors’ minds by asking Bily about her education and her contact with Poulsen.
Bily graduated from Wright State University in Dayton in 1994 with degree in English. Until she worked at National Century, she had no training in finance.
Terpening also asked Bily if she had ever read National Century’s governing documents, such as its master indenture agreement, sale and subservicing agreement and private placement memorandum. Bily admitted she had only read a sample sale and subservicing agreement, a document that governed how National Century worked with the health-care providers it financed. When she had questions about other aspects of the business, Bily said she would turn to her superiors for answers.
Bily said she was too intimidated to express her opinions on National Century’s allegedly illegal actions to Poulsen. Instead, Bily said she would relay her concerns to her immediate supervisors.
Terpening also questioned Bily about her cooperation with the government. She admitted that she reached out to help investigators in early 2003, but at the behest of her attorney. Bily also said she went through National Century’s computer network to find documents that would be helpful to the government. On some of those documents, Bily attached explanations of what Poulsen was trying to accomplish.
But Terpening reminded Bily that she and Poulsen didn’t talk together about strategy, and asked why she thought she knew what Poulsen’s intentions were. Bily said she thought it was obvious what Poulsen was trying to do.
Who advised Arizona to invest in NCFE? John McCain?
*Ratification of Authorization to Initiate Litigation Seeking to Recover Losses Incurred Through Investments in Bonds Issued by National Century Financial Enterprises and Authorization to Enter into an Intergovernmental Agreement with Other Arizona Governmental Entities to Pursue Recovery of These Losses (ASU and NAU)
The Local Government Investment Pool (LGIP) is a statutorily authorized investment fund, consisting of monies deposited by the State and more than 100 counties, cities, political subdivisions, and other public entities, managed by the State Treasurer.
Between March 2001 and June 2002, the State Treasurer invested a portion of the LGIP funds in NCFE bonds. In October 2002, a nationwide scandal broke out concerning financial mismanagement and possible fraud by NCFE’s principals and in November 2002, NCFE filed for bankruptcy. ASU lost nearly $4M and NAU lost approximately $600,000. The UA did not, at that time, have any funds invested in the LGIP. The Arizona Attorney General’s office filed a bankruptcy claim on behalf of the State Treasurer and all of the Arizona real parties in interest.
Earlier this year several of the individual public entity investors, including ASU, began a series of meetings to examine options available to the investors to recover their losses, including filing a lawsuit against NCFE principals, bond trustees, and other third parties. The group proposed retaining separate counsel for the investors using an intergovern-mental agreement or similar agreement and eventually selected Gibbs & Bruns, a Houston law firm that is already representing investors accounting for about $1.3B in NCFE losses. Cohen Kennedy Dowd & Quigley is local counsel.
On May 16, 2003, the public entity investors were asked to notify the Gibbs and Bruns law firm of their intent to participate in the litigation. The law firm advised of the need for a timely filing in order to avoid potential statute of limitations issues. As authorized by ABOR Policy 1-109 (B), Board Counsel authorized initiation of litigation by ASU and NAU following consultation with Board President Jewett. Under that policy, Board Counsel’s decision to authorize the initiation of litigation is subject to ratification by the Board at its next meeting.
The Board ratified the decision to initiate litigation to pursue the recovery of investment losses incurred by ASU and NAU through an investment of public funds by the Local Government Investment Pool in bonds issued by National Century Financial Enterprises and authorized ASU and NAU to enter into an intergovernmental agreement with other Arizona governmental entities to pursue recovery of these losses, including authority to compromise and/or settle claims and to provide for the distribution of recovered funds.
The Local Government Investment Pool (LGIP) is a statutorily authorized investment fund, consisting of monies deposited by the State and more than 100 counties, cities, political subdivisions, and other public entities, managed by the State Treasurer.
Between March 2001 and June 2002, the State Treasurer invested a portion of the LGIP funds in NCFE bonds. In October 2002, a nationwide scandal broke out concerning financial mismanagement and possible fraud by NCFE’s principals and in November 2002, NCFE filed for bankruptcy. ASU lost nearly $4M and NAU lost approximately $600,000. The UA did not, at that time, have any funds invested in the LGIP. The Arizona Attorney General’s office filed a bankruptcy claim on behalf of the State Treasurer and all of the Arizona real parties in interest.
Earlier this year several of the individual public entity investors, including ASU, began a series of meetings to examine options available to the investors to recover their losses, including filing a lawsuit against NCFE principals, bond trustees, and other third parties. The group proposed retaining separate counsel for the investors using an intergovern-mental agreement or similar agreement and eventually selected Gibbs & Bruns, a Houston law firm that is already representing investors accounting for about $1.3B in NCFE losses. Cohen Kennedy Dowd & Quigley is local counsel.
On May 16, 2003, the public entity investors were asked to notify the Gibbs and Bruns law firm of their intent to participate in the litigation. The law firm advised of the need for a timely filing in order to avoid potential statute of limitations issues. As authorized by ABOR Policy 1-109 (B), Board Counsel authorized initiation of litigation by ASU and NAU following consultation with Board President Jewett. Under that policy, Board Counsel’s decision to authorize the initiation of litigation is subject to ratification by the Board at its next meeting.
The Board ratified the decision to initiate litigation to pursue the recovery of investment losses incurred by ASU and NAU through an investment of public funds by the Local Government Investment Pool in bonds issued by National Century Financial Enterprises and authorized ASU and NAU to enter into an intergovernmental agreement with other Arizona governmental entities to pursue recovery of these losses, including authority to compromise and/or settle claims and to provide for the distribution of recovered funds.
"...state of Arizona, lost millions..."
As fraud cases go, the National Century Financial Enterprises case ranks up there with Enron and WorldCom, prosecutors say.
National Century's collapse never gained much attention outside business circles, largely because it was a privately held company. But some, such as large pension funds and the state of Arizona, lost millions.
"I always say it's the largest, most significant case you've never heard of," said Kathy Patrick, an Arizona attorney representing 30 clients who lost a total of $1.6 billion.
Trials in huge fraud case to begin
Sunday, February 3, 2008 3:32 AM
By Jodi Andes
THE COLUMBUS DISPATCH
National Century co-founder and former chief executive Lance K. Poulsen's lifestyle afforded him the use of a 60-foot yacht.
By the numbers $4.4 billion invested in National Century in its last four years
$1.9 billion lost by investors 10 million-plus documents compiled by prosecutors preparing for three fraud trials 45 prosecution witnesses 5 defendants who could go to prison for life if convicted of all charges As fraud cases go, the National Century Financial Enterprises case ranks up there with Enron and WorldCom, prosecutors say.
Investors in the Dublin-based company lost more than $1.9 billion after the financing giant filed for bankruptcy in 2002. And at least 275 health-care companies collapsed, putting thousands out of work and affecting thousands of patients.
National Century's collapse never gained much attention outside business circles, largely because it was a privately held company. But some, such as large pension funds and the state of Arizona, lost millions.
"I always say it's the largest, most significant case you've never heard of," said Kathy Patrick, an Arizona attorney representing 30 clients who lost a total of $1.6 billion.
By comparison, the scandals that destroyed publicly traded Enron and WorldCom hit thousands of stockholders. The Enron scandal wiped out 5,600 jobs and $2.1 billion in pensions and destroyed $60 billion in market value. The $11 billion WorldCom accounting fraud resulted in investor losses estimated at $180 billion, and it put more than 20,000 people out of work and destroyed their retirement funds.
Eleven people have been charged in connection with the National Century collapse. Four already have pleaded guilty and agreed to testify against the others.
The rest will defend themselves in four trials that are expected to span most of the year. The first starts Monday, and the last is scheduled to begin on Oct. 1.
Former CEO and co-founder Lance K. Poulsen is to be tried twice -- on March 7, with a co-defendant, on a charge of witness tampering, and again on Aug. 4, on charges of fraud, conspiracy and money laundering.
The trial that starts on Monday is expected to last at least two months. Facing charges ranging from conspiracy to money laundering are the other two co-founders, Rebecca S. Parrett and Donald H. Ayers, as well as former executives Randolph H. Speer, Roger S. Faulkenberry and James E. Dierker. If convicted on all charges, all but Dierker could be sentenced to life in prison.
At 39, Dierker is the youngest defendant. He could be sentenced to 25 years in prison if convicted.
Those familiar with the case say it is one to watch because of its immediate and continuing effect on the national economy.
National Century's collapse never gained much attention outside business circles, largely because it was a privately held company. But some, such as large pension funds and the state of Arizona, lost millions.
"I always say it's the largest, most significant case you've never heard of," said Kathy Patrick, an Arizona attorney representing 30 clients who lost a total of $1.6 billion.
Trials in huge fraud case to begin
Sunday, February 3, 2008 3:32 AM
By Jodi Andes
THE COLUMBUS DISPATCH
National Century co-founder and former chief executive Lance K. Poulsen's lifestyle afforded him the use of a 60-foot yacht.
By the numbers $4.4 billion invested in National Century in its last four years
$1.9 billion lost by investors 10 million-plus documents compiled by prosecutors preparing for three fraud trials 45 prosecution witnesses 5 defendants who could go to prison for life if convicted of all charges As fraud cases go, the National Century Financial Enterprises case ranks up there with Enron and WorldCom, prosecutors say.
Investors in the Dublin-based company lost more than $1.9 billion after the financing giant filed for bankruptcy in 2002. And at least 275 health-care companies collapsed, putting thousands out of work and affecting thousands of patients.
National Century's collapse never gained much attention outside business circles, largely because it was a privately held company. But some, such as large pension funds and the state of Arizona, lost millions.
"I always say it's the largest, most significant case you've never heard of," said Kathy Patrick, an Arizona attorney representing 30 clients who lost a total of $1.6 billion.
By comparison, the scandals that destroyed publicly traded Enron and WorldCom hit thousands of stockholders. The Enron scandal wiped out 5,600 jobs and $2.1 billion in pensions and destroyed $60 billion in market value. The $11 billion WorldCom accounting fraud resulted in investor losses estimated at $180 billion, and it put more than 20,000 people out of work and destroyed their retirement funds.
Eleven people have been charged in connection with the National Century collapse. Four already have pleaded guilty and agreed to testify against the others.
The rest will defend themselves in four trials that are expected to span most of the year. The first starts Monday, and the last is scheduled to begin on Oct. 1.
Former CEO and co-founder Lance K. Poulsen is to be tried twice -- on March 7, with a co-defendant, on a charge of witness tampering, and again on Aug. 4, on charges of fraud, conspiracy and money laundering.
The trial that starts on Monday is expected to last at least two months. Facing charges ranging from conspiracy to money laundering are the other two co-founders, Rebecca S. Parrett and Donald H. Ayers, as well as former executives Randolph H. Speer, Roger S. Faulkenberry and James E. Dierker. If convicted on all charges, all but Dierker could be sentenced to life in prison.
At 39, Dierker is the youngest defendant. He could be sentenced to 25 years in prison if convicted.
Those familiar with the case say it is one to watch because of its immediate and continuing effect on the national economy.
McCain's healthcare...please ! Look at NCFE! JPMorgan and Chase
One must wonder what the ex-majority Leader's family business really stole!
You remember, Bill Frist and family! Remember the SEC scandal?
The U.S. District Court of the District of Columbia has approved HCA Inc.'s recently signed agreement with the Department of Justice that settled the federal government's fraud litigation of the hospital chain by addressing the issues of cost reports and physician relations.
The agreement, originally announced in December, calls for Nashville-based HCA (NYSE: HCA) to pay the DOJ $631 million as well as interest of 4.5 percent that began to accrue in February.
HCA has also paid the Centers for Medicare and Medicaid Services $250 million as part of an earlier agreement to resolve all Medicare cost report, home office cost statement and appeal issues between HCA and CMS.
You remember, Bill Frist and family! Remember the SEC scandal?
The U.S. District Court of the District of Columbia has approved HCA Inc.'s recently signed agreement with the Department of Justice that settled the federal government's fraud litigation of the hospital chain by addressing the issues of cost reports and physician relations.
The agreement, originally announced in December, calls for Nashville-based HCA (NYSE: HCA) to pay the DOJ $631 million as well as interest of 4.5 percent that began to accrue in February.
HCA has also paid the Centers for Medicare and Medicaid Services $250 million as part of an earlier agreement to resolve all Medicare cost report, home office cost statement and appeal issues between HCA and CMS.
Subscribe to:
Posts (Atom)
