Tennessee's Largest Bankruptcy in 1999 held most of NCFE so called purchases.
What about the bankruptcy fraud for the case filed July 29, 1999 in Memphis Bankruptcy Court? All the NCFE Debtor in Posession finance tool used to hide Columbia Homecare Group?
The court room full of lawyers cried FRAUD- the judge forbade the 'F' word in her court.
National Century victims awaiting repayment
Sunday, May 3, 2009 3:22 AM
By John Futty
THE COLUMBUS DISPATCH
When National Century Financial Enterprises collapsed into fraud-fueled bankruptcy, few investors were hit as hard as those in Arizona.
More than 100 of the state's agencies and communities were in an investment pool that held notes worth $131 million in the Dublin-based health-care finance company. Chandler, Ariz., a suburb of Phoenix, took the largest individual hit, losing $13 million.
"There was shock, there was disbelief," said Nachie Marquez, a spokeswoman for the city. "It's taxpayer funds. You put your trust in an investment pool and you think it's safe."
The Arizona investors were among hundreds of institutional victims across the U.S. whose losses totaled $2.38 billion -- the largest known fraud case in the country involving a private company.
The government is "aggressively working" to recover the money from the founders and executives of National Century. They were ordered to pay restitution after they were convicted in federal court in Columbus of conspiracy, securities fraud, mail fraud and money laundering, said Assistant U.S. Attorney Doug Squires.
Last week, U.S. District Judge Algenon L. Marbley issued an order requiring National Century co-founder Lance K. Poulsen, considered the architect of the scheme, and his co-conspirators to forfeit $1.7 billion in assets, the amount prosecutors say represents the proceeds of the conspiracy.
But attorneys for the victims say they are more likely to recover the most significant amounts through lawsuits filed against financial institutions that allegedly are liable for the fraud.
"While we appreciate the government's efforts to squeeze money out of the individual criminal defendants," the financial institutions named in the civil litigation "are able to pay much more than any of these folks have," said Scott Humphries of Houston-based Gibbs & Bruns. The law firm represents investors who lost a total of $1.6 billion.
Investors filed a flurry of lawsuits against National Century, its executives and its financial advisers after the company filed for bankruptcy in 2002. The suits, involving hundreds of plaintiffs in five states, were combined in 2003 and assigned to one federal judge in Columbus.
JPMorgan Chase, a trustee for National Century funds, agreed to pay $425 million to settle its portion of the lawsuit in February 2006, according to an annual report it filed with the Securities and Exchange Commission.
The plaintiffs said JPMorgan Chase was negligent in allowing National Century to make fraudulent transfers among its accounts and for not detecting or revealing the illegal activity to investors.
Settlement money and insurance coverage helped the city of Chandler recoup some of its losses, Marquez said.
"We've recovered about 40 cents on the dollar for our clients," Humphries said.
Civil litigation continues against Credit Suisse, the investment bank that issued National Century's bonds.
Meanwhile, the U.S. attorney's office has collected $2.3 million so far from the criminal defendants, said Fred Alverson, an office spokesman.
The total includes $396,178 that federal agents seized in March from the bank account of Rebecca S. Parrett, a National Century executive who has been a fugitive since shortly after her conviction in March 2008.
The money recovered from the defendants was delivered to the federal clerk's office but has not been distributed to any victims, Alverson said.
National Century purchased the accounts receivable from hospitals, clinics and nursing homes using money obtained by selling asset-backed notes to institutional investors.
Evidence in the criminal trials showed that the company executives diverted money to support their lavish lifestyles and made unsecured loans to the health-care providers, leading to the company's collapse.
The bankruptcy process had begun in 2002 when the FBI obtained a warrant to search the company's Dublin headquarters. Agents collected more than 2,000 boxes of documents and computer files that formed the basis for an investigation involving the FBI, the Internal Revenue Service, U.S. postal inspectors and Immigration and Customs Enforcement.
Institutional investors, which included police and firefighter pension funds, churches, labor unions, cities and counties, and insurance companies, were led to believe the company's bonds were among the safest investments available.
The business model presented to investors was solid but never followed by the company, Squires said.
"(Company executives) did not dip their toes in the pool of fraud, they jumped in from Day One," he said. "From the first investor report, it was fraudulent."
The assets of the conspirators were researched by the federal probation office, but the information is not public record. Defense attorneys have said their clients' assets largely were exhausted while fighting the criminal charges.
Squires said the U.S. attorney's office will attempt to get "every available penny" from those convicted by seizing bank accounts, pensions, 401(k)s and property.
jfutty@dispatch.com
--------------------------------------------------------------------------------
On the Web • Watch a video of Assistant U.S. Attorney Doug Squires at Dispatch.com/video. For complete coverage of the National Century case, visit Dispatch.com/metro.
Showing posts with label Richard Rainwater. Show all posts
Showing posts with label Richard Rainwater. Show all posts
Monday, May 4, 2009
Tuesday, April 28, 2009
Rainwater's 'Single Worst Investment' Toxic Real Estate
Renowned investor Richard Rainwater saw 70% of the value drain out of his $100 million investment in Thornburg Mortgage
by Christopher Palmeri
Sometimes even billionaires make bone-headed moves. Richard Rainwater, the legendary Fort Worth investor, has seen a 70% decline in just two months on some $100 million he put into troubled home lender Thornburg Mortgage (TMA). Rainwater calls it the "the single worst investment of my career."
The 65-year-old-financier, with a fortune estimated at $3 billion by Forbes magazine, told BusinessWeek.com he was watching TV last year when he saw Thornburg's chief executive, Larry Goldstone, speaking about the mortgage crisis. "He seemed like a bright guy," Rainwater recalls. Rainwater says he then checked with some of his investment industry sources who said they considered Thornburg a "capable group."
Buying into the Jumbo MarketIn January Rainwater plunked down about $100 million to buy roughly 5 million shares of the Santa Fe (N.M.) company's preferred stock. Rainwater bought shares both in a public offering that Thornburg had arranged and on the open market. He says his average cost was 21.45 a share. The preferred stock trades today at 6.25 per share; Thornburg common shares closed Mar. 13 at 2.26, down from 28 in May.
Filings with the Securities & Exchange Commission show that Rainwater and his wife, Darla Moore, own preferred stock convertible into 9.3 million shares of Thornburg's common stock, about 6% of the company's shares outstanding. By the time Rainwater invested, Thornburg was already in trouble. That was reflected in the fact that Thornburg was offering a dividend on the preferred shares of 10%. The company declined to comment on the issue.
Founded in 1993 by the current chairman, Garrett Thornburg, the company specializes in making "jumbo" single-family home loans to what it calls "superprime" customers. Those are individuals with credit scores of 744 or higher. Some 97% of its investments are in loans rated AA or higher by ratings agencies. Thornburg says just 0.4% of its loans are delinquent, compared to an industry average of more than 4%.
Rainwater says it was the high-end nature of Thornburg's business that attracted him to the company. "Housing values are suffering everywhere," he says. "But at the high end things are holding up better." On its Web site Thornburg is offering mortgage rates as low as 7.9%.
Crumbling Credit Markets
Last summer Thornburg averted greater financial difficulties by selling $20 billion of its assets. In recent weeks, though, its problems have escalated as lenders began requiring the company to put up more capital to back its mortgage investments. The company says it is presently negotiating with creditors who want $600 million in additional financing.
The problem, says Keefe, Bruyette & Woods (KBW) analyst Bose George, is that Thornburg has been funding its business with short-term loans. That worked when capital was easy to find. "They have one of the best balance sheets on the asset side," George says. "The problem is in the market—it's hard to borrow money." George says he sees the market shifting away from independent lenders such as Countrywide Financial (CFC) and Thornburg. In the future, "mortgage lending is going to be done by banks," he says. "Nonbanks have turned out to be extremely vulnerable to this kind of downturn."
Win Some, Lose Some
Rainwater is famous for scooping up assets in troubled companies. As a chief adviser to Fort Worth's billionaire Bass brothers in the 1980s, he directed the family to invest in then-floundering Walt Disney (DIS). That company went on to great success under Chief Executive Michael Eisner. In the 1990s, Rainwater plunged into oil and gas companies then struggling with low commodities prices. He invested in the Hunt brothers' bankrupt Penrod Drilling, since merged into Ensco International (ESV), and T. Boone Pickens' Mesa Petroleum, now a part of Pioneer Natural Resources (PXD). "Oil I understand," Rainwater says. "Interest rates…?"
Last August Rainwater sold Crescent Real Estate Equities to Morgan Stanley (MS) for $6.5 billion. Crescent was a big owner of office buildings. Rainwater sold at what now looks to have been the peak of the recent commercial real estate cycle. "It just seemed like the right time to do it," he says, with the prices paid for office property working out to yield just 4% to 5% for buyers.
Rainwater says his portfolio is still up for the year thanks to his energy holdings, which include blue chip oil and gas companies such as Chevron (CVX) and ConocoPhillips (COP).
Nonetheless, he says, the losses so far on Thornburg "still don't feel good."
Palmeri is a senior correspondent in BusinessWeek's Los Angeles bureau
by Christopher Palmeri
Sometimes even billionaires make bone-headed moves. Richard Rainwater, the legendary Fort Worth investor, has seen a 70% decline in just two months on some $100 million he put into troubled home lender Thornburg Mortgage (TMA). Rainwater calls it the "the single worst investment of my career."
The 65-year-old-financier, with a fortune estimated at $3 billion by Forbes magazine, told BusinessWeek.com he was watching TV last year when he saw Thornburg's chief executive, Larry Goldstone, speaking about the mortgage crisis. "He seemed like a bright guy," Rainwater recalls. Rainwater says he then checked with some of his investment industry sources who said they considered Thornburg a "capable group."
Buying into the Jumbo MarketIn January Rainwater plunked down about $100 million to buy roughly 5 million shares of the Santa Fe (N.M.) company's preferred stock. Rainwater bought shares both in a public offering that Thornburg had arranged and on the open market. He says his average cost was 21.45 a share. The preferred stock trades today at 6.25 per share; Thornburg common shares closed Mar. 13 at 2.26, down from 28 in May.
Filings with the Securities & Exchange Commission show that Rainwater and his wife, Darla Moore, own preferred stock convertible into 9.3 million shares of Thornburg's common stock, about 6% of the company's shares outstanding. By the time Rainwater invested, Thornburg was already in trouble. That was reflected in the fact that Thornburg was offering a dividend on the preferred shares of 10%. The company declined to comment on the issue.
Founded in 1993 by the current chairman, Garrett Thornburg, the company specializes in making "jumbo" single-family home loans to what it calls "superprime" customers. Those are individuals with credit scores of 744 or higher. Some 97% of its investments are in loans rated AA or higher by ratings agencies. Thornburg says just 0.4% of its loans are delinquent, compared to an industry average of more than 4%.
Rainwater says it was the high-end nature of Thornburg's business that attracted him to the company. "Housing values are suffering everywhere," he says. "But at the high end things are holding up better." On its Web site Thornburg is offering mortgage rates as low as 7.9%.
Crumbling Credit Markets
Last summer Thornburg averted greater financial difficulties by selling $20 billion of its assets. In recent weeks, though, its problems have escalated as lenders began requiring the company to put up more capital to back its mortgage investments. The company says it is presently negotiating with creditors who want $600 million in additional financing.
The problem, says Keefe, Bruyette & Woods (KBW) analyst Bose George, is that Thornburg has been funding its business with short-term loans. That worked when capital was easy to find. "They have one of the best balance sheets on the asset side," George says. "The problem is in the market—it's hard to borrow money." George says he sees the market shifting away from independent lenders such as Countrywide Financial (CFC) and Thornburg. In the future, "mortgage lending is going to be done by banks," he says. "Nonbanks have turned out to be extremely vulnerable to this kind of downturn."
Win Some, Lose Some
Rainwater is famous for scooping up assets in troubled companies. As a chief adviser to Fort Worth's billionaire Bass brothers in the 1980s, he directed the family to invest in then-floundering Walt Disney (DIS). That company went on to great success under Chief Executive Michael Eisner. In the 1990s, Rainwater plunged into oil and gas companies then struggling with low commodities prices. He invested in the Hunt brothers' bankrupt Penrod Drilling, since merged into Ensco International (ESV), and T. Boone Pickens' Mesa Petroleum, now a part of Pioneer Natural Resources (PXD). "Oil I understand," Rainwater says. "Interest rates…?"
Last August Rainwater sold Crescent Real Estate Equities to Morgan Stanley (MS) for $6.5 billion. Crescent was a big owner of office buildings. Rainwater sold at what now looks to have been the peak of the recent commercial real estate cycle. "It just seemed like the right time to do it," he says, with the prices paid for office property working out to yield just 4% to 5% for buyers.
Rainwater says his portfolio is still up for the year thanks to his energy holdings, which include blue chip oil and gas companies such as Chevron (CVX) and ConocoPhillips (COP).
Nonetheless, he says, the losses so far on Thornburg "still don't feel good."
Palmeri is a senior correspondent in BusinessWeek's Los Angeles bureau
Rick Scott, Bigger then Enron
New Commercial for Richard Scott
Conservatives for Patients' Rights
Remember who Richard is:
The Epitome of Fraud- Waste-Abuse:
2009 - WSJ reported that Richard Scott, "the former CEO of HCA Inc," had formed the non-profit organization-
Conservatives for Patients' Rights
as part of a "lobbying campaign to derail or modify" health care reform.
non-profit? What a joke.
Not this thief: THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
He features a doctor from England. I wonder why?
HCA International
242 Marylebone Road London, NW1 6JL
News & Events Careers Sitemap Legal
2008-
Welcome to London's leading private hospitals
Text size: A A
With six world-class hospitals and four outpatient medical centres in London, we are the private hospitals of choice for the successful treatment of serious and complex medical conditions. We also achieve some of the highest patient outcome and survival rates in the UK and our hospitals are virtually MRSA-free*
Conservatives for Patients' Rights
Remember who Richard is:
The Epitome of Fraud- Waste-Abuse:
2009 - WSJ reported that Richard Scott, "the former CEO of HCA Inc," had formed the non-profit organization-
Conservatives for Patients' Rights
as part of a "lobbying campaign to derail or modify" health care reform.
non-profit? What a joke.
Not this thief: THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
He features a doctor from England. I wonder why?
HCA International
242 Marylebone Road London, NW1 6JL
News & Events Careers Sitemap Legal
2008-
Welcome to London's leading private hospitals
Text size: A A
With six world-class hospitals and four outpatient medical centres in London, we are the private hospitals of choice for the successful treatment of serious and complex medical conditions. We also achieve some of the highest patient outcome and survival rates in the UK and our hospitals are virtually MRSA-free*
Sunday, April 19, 2009
Leo J. Wise, Staff Director & Chief Counsel
OFFICE OF CONGRESSIONAL ETHICS
UNITED STATES HOUSE OF REPRESENTATIVES
WASHINGTON, D. C. 20515
FOR IMMEDIATE RELEASE Contact: Leo Wise
April 15, 2009 oce@mail.house.gov
PRESS ADVISORY:
OFFICE OF CONGRESSIONAL ETHICS RELEASES FIRST QUARTER REPORT
The Office of Congressional Ethics, established by the House of Representatives, is an independent, non-partisan entity charged with receiving and reviewing allegations of misconduct concerning House Members and staff and, when appropriate, referring matters to the Committee on Standards of Official Conduct (commonly referred to as the Ethics Committee).
Consistent with the desire of the House for more transparency in these matters, the OCE released today a report of its activities for the first quarter, January to March, of 2009.
# # #
Leo J. Wise, Staff Director & Chief Counsel
1017 Longworth House Office Building
(202) 225-9739
(202) 226-0997 fax
David Skaggs, Chair Porter Goss, Co-Chair
Yvonne Burke Jay Eagen
Karan English William Frenzel
Allison Hayward Abner Mikva
In 1997, as part of Richard Scott's severance package from Columbia he was paid $5.13 million and given a five year consulting contract at $950,000 per year
1997 + 5 = 2002
Remember- 1997 Columbia just decided to sell its home health-care business.
In 2002 FBI raided the offices of National Century Financial Enterprises in Dublin, Ohio
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
Guess where those home health care units were found?
Yes- "...largest corporate fraud investigations involving a privately held company headquartered in small town America,”
Why 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.
On Sept 8, 1998 Standard and Poors downgraded the bonds of Charter/HCA to negative bases on
poor earnings. Looks like Rainwater and his Crescent Cos' have finally stumbled. One source within the company said it would be a long while before any new high-ticket acquisitions would take place. A previous deal with Prudential is in danger of being jettisoned.
Part Four- Richard (aka Rick) Scott/Conservatives for Patients' Rights
A 2009 article from - The Wall Street Journal reported that Richard Scott, "the former chief executive of HCA Inc," had formed the non-profit organization Conservatives for Patients' Rights as part of a "lobbying campaign to derail or modify" President Obama's health care proposals, but failed to note that Scott resigned from HCA in 1997 amid a federal investigation into the company's Medicare billing, physician recruiting, and home-care practices. HCA eventually pleaded guilty to fraud charges and paid approximately $1.7 billion in fines and penalties.
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
WASHINGTON, D.C.
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
Enron and National Century Financial Enterprises, one of the largest corporate fraud investigations involving a privately held company headquartered in small town America.
On 3-9-2006 10-K SEC Filing, filed by J P MORGAN CHASE & CO: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors
Friday, March 14, 2008 3:16 AM
Guilty, guilty, guilty, guilty...
5 National Century executives face prison time for fraud
BY JODI ANDES AND KEVIN MAYHOOD
THE COLUMBUS DISPATCH
It seemed the jury had little doubt about the guilt of the former National Century executives accused of the nation's biggest private fraud.
After a day and a half of deliberation, the jury of eight women and four men came back with a determination of "guilty" for every one of the 40 charges against two of the Dublin company's founders and three of its former executives.
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.
FOR IMMEDIATE RELEASE--Friday, October 31, 2008--WWW.USDOJ.GOV
Former National Century Financial Enterprises CEO Convicted of Conspiracy, Fraud and Money Laundering
Fraud Cost Investors More Than $2 Billion
November 2008 - Only executive James Happ still await trial.
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
December 18, 2008 - the ONE AND ONLY acquittal- James K Happ
Who is James K Happ?
SEC Form September 9, 2003 Annual Meeting of Stockholders, Med Diversified Inc.:
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency.
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc.,
CFO of Dallas-based Columbia Homecare Group, Inc.?
James K Happ … 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
Richard Rainwater and Darla Moore in 1997, as part of Richard Scott's severance package from Columbia was paid $5.13 million and given a five year consulting contract at $950,000 per year
UNITED STATES HOUSE OF REPRESENTATIVES
WASHINGTON, D. C. 20515
FOR IMMEDIATE RELEASE Contact: Leo Wise
April 15, 2009 oce@mail.house.gov
PRESS ADVISORY:
OFFICE OF CONGRESSIONAL ETHICS RELEASES FIRST QUARTER REPORT
The Office of Congressional Ethics, established by the House of Representatives, is an independent, non-partisan entity charged with receiving and reviewing allegations of misconduct concerning House Members and staff and, when appropriate, referring matters to the Committee on Standards of Official Conduct (commonly referred to as the Ethics Committee).
Consistent with the desire of the House for more transparency in these matters, the OCE released today a report of its activities for the first quarter, January to March, of 2009.
# # #
Leo J. Wise, Staff Director & Chief Counsel
1017 Longworth House Office Building
(202) 225-9739
(202) 226-0997 fax
David Skaggs, Chair Porter Goss, Co-Chair
Yvonne Burke Jay Eagen
Karan English William Frenzel
Allison Hayward Abner Mikva
In 1997, as part of Richard Scott's severance package from Columbia he was paid $5.13 million and given a five year consulting contract at $950,000 per year
1997 + 5 = 2002
Remember- 1997 Columbia just decided to sell its home health-care business.
In 2002 FBI raided the offices of National Century Financial Enterprises in Dublin, Ohio
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
Guess where those home health care units were found?
Yes- "...largest corporate fraud investigations involving a privately held company headquartered in small town America,”
Why 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.
On Sept 8, 1998 Standard and Poors downgraded the bonds of Charter/HCA to negative bases on
poor earnings. Looks like Rainwater and his Crescent Cos' have finally stumbled. One source within the company said it would be a long while before any new high-ticket acquisitions would take place. A previous deal with Prudential is in danger of being jettisoned.
Part Four- Richard (aka Rick) Scott/Conservatives for Patients' Rights
A 2009 article from - The Wall Street Journal reported that Richard Scott, "the former chief executive of HCA Inc," had formed the non-profit organization Conservatives for Patients' Rights as part of a "lobbying campaign to derail or modify" President Obama's health care proposals, but failed to note that Scott resigned from HCA in 1997 amid a federal investigation into the company's Medicare billing, physician recruiting, and home-care practices. HCA eventually pleaded guilty to fraud charges and paid approximately $1.7 billion in fines and penalties.
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
WASHINGTON, D.C.
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
Enron and National Century Financial Enterprises, one of the largest corporate fraud investigations involving a privately held company headquartered in small town America.
On 3-9-2006 10-K SEC Filing, filed by J P MORGAN CHASE & CO: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors
Friday, March 14, 2008 3:16 AM
Guilty, guilty, guilty, guilty...
5 National Century executives face prison time for fraud
BY JODI ANDES AND KEVIN MAYHOOD
THE COLUMBUS DISPATCH
It seemed the jury had little doubt about the guilt of the former National Century executives accused of the nation's biggest private fraud.
After a day and a half of deliberation, the jury of eight women and four men came back with a determination of "guilty" for every one of the 40 charges against two of the Dublin company's founders and three of its former executives.
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.
FOR IMMEDIATE RELEASE--Friday, October 31, 2008--WWW.USDOJ.GOV
Former National Century Financial Enterprises CEO Convicted of Conspiracy, Fraud and Money Laundering
Fraud Cost Investors More Than $2 Billion
November 2008 - Only executive James Happ still await trial.
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
December 18, 2008 - the ONE AND ONLY acquittal- James K Happ
Who is James K Happ?
SEC Form September 9, 2003 Annual Meeting of Stockholders, Med Diversified Inc.:
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency.
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc.,
CFO of Dallas-based Columbia Homecare Group, Inc.?
James K Happ … 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
Richard Rainwater and Darla Moore in 1997, as part of Richard Scott's severance package from Columbia was paid $5.13 million and given a five year consulting contract at $950,000 per year
Wednesday, April 1, 2009
U.S. Seeks to Drop Case Against Former Sen. Stevens
Prosecutors did not do their job!
Well I hope the AG looks at his case-jurors said the prosecutor did not do their job in December 2008...
2002-The largest private financial fraud case in our country's history began to uncover itself back in 2002, and no one heard of it. Wonder why?
JPMorgan, Citi, Goldman, Merrill, Morgan were all involved in this scheme, for years and were found guilty of contributing to the largest financial fraud case in our history; the largest financial fraud case that just ended Dec 2008 and no one paid attention. Credit Suisse LLC is pending with litigation with its involvement in this case.
The last trial for this case, even after the CEO stood trial was James K Happ. The ONE AND ONLY acquittal James K Happ!
December 18, 2008 - THE COLUMBUS DISPATCH By Jodi Andes --Prosecutors' case fell short, juror says, instead, they were more a belief that federal prosecutors had not done their job…
The SEC places Happ at CFO of Columbia Homecare prior to arriving at NCFE. The years Happ was at NCFE were what the trial was focused on.
Guess what James K Happ did as CFO at Columbia? He used NCFE to finance HCA’s losing asset-homecare into a dumping ground, Medshares Inc in Memphis financed by NCFE. All the while Medshares was under multiple investigations for Medicare Medicaid fraud. Yet no one has heard of this case.
He was the ex-CFO of HCA-Columbia Homecare Group prior to arriving at NCFE and the only one not guilty.
Who is behind this fraud, really? Who are they covering up for?
Well I hope the AG looks at his case-jurors said the prosecutor did not do their job in December 2008...
2002-The largest private financial fraud case in our country's history began to uncover itself back in 2002, and no one heard of it. Wonder why?
JPMorgan, Citi, Goldman, Merrill, Morgan were all involved in this scheme, for years and were found guilty of contributing to the largest financial fraud case in our history; the largest financial fraud case that just ended Dec 2008 and no one paid attention. Credit Suisse LLC is pending with litigation with its involvement in this case.
The last trial for this case, even after the CEO stood trial was James K Happ. The ONE AND ONLY acquittal James K Happ!
December 18, 2008 - THE COLUMBUS DISPATCH By Jodi Andes --Prosecutors' case fell short, juror says, instead, they were more a belief that federal prosecutors had not done their job…
The SEC places Happ at CFO of Columbia Homecare prior to arriving at NCFE. The years Happ was at NCFE were what the trial was focused on.
Guess what James K Happ did as CFO at Columbia? He used NCFE to finance HCA’s losing asset-homecare into a dumping ground, Medshares Inc in Memphis financed by NCFE. All the while Medshares was under multiple investigations for Medicare Medicaid fraud. Yet no one has heard of this case.
He was the ex-CFO of HCA-Columbia Homecare Group prior to arriving at NCFE and the only one not guilty.
Who is behind this fraud, really? Who are they covering up for?
Tuesday, March 31, 2009
Fraud-Fraud-Fraud Not a word about prosecutor not doing his job with the ex-CFO of Columbia Homecare Group ....
Where was James K Happ?
Notice not one word- He wasa the last person to stand trial and the only acquittal.
Jurors said prosecutor did nto do his job.
NEWS RELEASE
GREGORY G. LOCKHART
UNITED STATES ATTORNEY
SOUTHERN DISTRICT OF OHIO
FOR IMMEDIATE RELEASE
TUESDAY, MARCH 27, 2009
http://www.usdoj.gov/usao/ohs
CONTACT: Fred Alverson
614 469-571
FORMER NATIONAL CENTURY FINANCIAL ENTERPRISES CEO SENTENCED TO 30 YEARS IN PRISON, CO-OWNER SENTENCED TO 25 YEARS IN PRISON FOR CONSPIRACY, FRAUD AND MONEY LAUNDERING
Defendants Ordered to Pay Restitution of $2.3 Billion and Forfeit $1.7 Billion
WASHINGTON—Two former National Century Financial Enterprises (NCFE) executives were sentenced today for their roles in a scheme to deceive investors about the financial health of NCFE, Acting Assistant Attorney General Rita M. Glavin and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced. NCFE, formerly based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
Lance K. Poulsen, 65, former president, owner and chief executive officer of NCFE was sentenced to 30 years in prison and three years of supervised release following the prison term. A federal jury convicted Poulsen on Oct. 31, 2008, of conspiracy, securities fraud, wire fraud and money laundering. Poulsen was also found guilty by a federal jury on March 26, 2008, of conspiring to interfere with a witness who was preparing to testify in the fraud trial against Poulsen and other NCFE executives. He is currently serving a 10-year prison sentence for that conviction. The court ordered Poulsen’s 30-year sentence to be served concurrently with the 10-year sentence for witness tampering.
Rebecca S. Parrett, 60, former vice chairman, secretary, treasurer, director and owner of NCFE was sentenced to 25 years in prison and three years of supervised release following the prison term. A federal jury convicted Parrett on March 13, 2008, of conspiracy, securities fraud, wire fraud and money laundering. Parrett fled after the conviction and remains at large.
U.S. District Court Judge Algenon Marbley also ordered Poulsen and Parrett to forfeit $1.7 billion of property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion, jointly and severally with other defendants.
“Corporate executives who violate the law, as well as investors’ trust, can and will be held accountable for their illegal actions,” said Acting Assistant Attorney General Rita M. Glavin. “The Department of Justice will continue to seek appropriate punishment, including jail time, for individuals who participate in financial frauds to the detriment of the investing public.”
“Evidence showed that Poulsen knew the business model NCFE presented to the investing public differed drastically from the way NCFE did business within its own walls,” U.S. Attorney Lockhart said. “Their actions were designed to hide a financial house of cards from investors, eventually costing investors $2 billion.”
“When corporate officers elect to betray the public’s trust for personal gain, the very core of how and why our corporate system operates is immediately and negatively impacted,” Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division Jose A. Gonzalez said. “As signified by today’s NCFE sentences, the IRS gives priority to investigations involving the alleged breach of the public trust by corporate officials at any level.”
FBI Cincinnati Special Agent in Charge Keith L. Bennett noted the significant sentences imposed on both Poulsen and Parrett. “This should serve as a warning to those who might be tempted to manipulate the complexities of our financial systems to defraud others. The FBI stands ready to root out those who would do so, bring them to the judicial system and ensure they lose both their ill-gotten wealth and their freedom.”
Witnesses testified at both trials that Poulsen, Parrett and other NCFE executives engaged in a scheme from 1995 until the collapse of the company to deceive investors and rating agencies about the financial health of NCFE and how investors’ money would be used. NCFE bought accounts receivable from healthcare providers using money NCFE obtained through the sale of asset-backed notes to institutional investors, including pension funds, insurance companies and churches.
Evidence at both trials showed that NCFE misused investors’ money and made unsecured loans to health care providers, including those owned in whole or in part by Poulsen, Parrett and another owner of NCFE, Donald H. Ayers. Former employees testified that Poulsen, Parrett and other NCFE executives covered up the fraud by lying to investors and rating agencies. The government presented evidence that Poulsen and others created investor reports containing fabricated data and moved money back and forth between programs in order to make it appear that NCFE was in compliance with its own governing documents. Evidence showed that Poulsen and Parrett knew the business model NCFE presented to the investing public differed significantly from the way NCFE actually conducted business.
Four other NCFE executives have been convicted in connection with the fraud. Donald H. Ayers, an NCFE vice chairman, chief operating officer, director and an owner of the company, was found guilty on charges of conspiracy, securities fraud and money laundering and was sentenced to 15 years in prison. Randolph H. Speer, NCFE’s chief financial officer, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering and was sentenced to 12 years in prison. Roger S. Faulkenberry, vice president for client development, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering and was sentenced to 10 years in prison. James E. Dierker, chief credit officer, was found guilty on charges of conspiracy and money laundering and was sentenced to five years in prison. In addition, four other former NCFE executives have pleaded guilty in connection with this fraud.
The cases were prosecuted by the U.S. Attorney’s Office for the Southern District of Ohio and the Criminal Division’s Fraud Section and investigated by FBI Special Agents Matt Daly, Ingrid Schmidt and Tad Morris; IRS Special Agents Greg Ruwe and Mark Bailey, U.S. Postal Inspector Dave Mooney; and Immigration and Customs Enforcement Agent Celeste Koszut. Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Assistant Chief Kathleen McGovern and Senior Trial Attorney Wes R. Porter of the Criminal Division’s Fraud Section prosecuted Parrett, Ayers, Speer, Faulkenberry and Dierker. Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Assistant Chief Kathleen McGovern, Trial Attorneys N. Nathan Dimock, and former Trial Attorney Leo Wise of the Criminal Division’s Fraud Section prosecuted Poulsen. Fraud Section Paralegal Specialists Crystal Curry and Sarah Marberg assisted with these cases.
Notice not one word- He wasa the last person to stand trial and the only acquittal.
Jurors said prosecutor did nto do his job.
NEWS RELEASE
GREGORY G. LOCKHART
UNITED STATES ATTORNEY
SOUTHERN DISTRICT OF OHIO
FOR IMMEDIATE RELEASE
TUESDAY, MARCH 27, 2009
http://www.usdoj.gov/usao/ohs
CONTACT: Fred Alverson
614 469-571
FORMER NATIONAL CENTURY FINANCIAL ENTERPRISES CEO SENTENCED TO 30 YEARS IN PRISON, CO-OWNER SENTENCED TO 25 YEARS IN PRISON FOR CONSPIRACY, FRAUD AND MONEY LAUNDERING
Defendants Ordered to Pay Restitution of $2.3 Billion and Forfeit $1.7 Billion
WASHINGTON—Two former National Century Financial Enterprises (NCFE) executives were sentenced today for their roles in a scheme to deceive investors about the financial health of NCFE, Acting Assistant Attorney General Rita M. Glavin and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced. NCFE, formerly based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
Lance K. Poulsen, 65, former president, owner and chief executive officer of NCFE was sentenced to 30 years in prison and three years of supervised release following the prison term. A federal jury convicted Poulsen on Oct. 31, 2008, of conspiracy, securities fraud, wire fraud and money laundering. Poulsen was also found guilty by a federal jury on March 26, 2008, of conspiring to interfere with a witness who was preparing to testify in the fraud trial against Poulsen and other NCFE executives. He is currently serving a 10-year prison sentence for that conviction. The court ordered Poulsen’s 30-year sentence to be served concurrently with the 10-year sentence for witness tampering.
Rebecca S. Parrett, 60, former vice chairman, secretary, treasurer, director and owner of NCFE was sentenced to 25 years in prison and three years of supervised release following the prison term. A federal jury convicted Parrett on March 13, 2008, of conspiracy, securities fraud, wire fraud and money laundering. Parrett fled after the conviction and remains at large.
U.S. District Court Judge Algenon Marbley also ordered Poulsen and Parrett to forfeit $1.7 billion of property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion, jointly and severally with other defendants.
“Corporate executives who violate the law, as well as investors’ trust, can and will be held accountable for their illegal actions,” said Acting Assistant Attorney General Rita M. Glavin. “The Department of Justice will continue to seek appropriate punishment, including jail time, for individuals who participate in financial frauds to the detriment of the investing public.”
“Evidence showed that Poulsen knew the business model NCFE presented to the investing public differed drastically from the way NCFE did business within its own walls,” U.S. Attorney Lockhart said. “Their actions were designed to hide a financial house of cards from investors, eventually costing investors $2 billion.”
“When corporate officers elect to betray the public’s trust for personal gain, the very core of how and why our corporate system operates is immediately and negatively impacted,” Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division Jose A. Gonzalez said. “As signified by today’s NCFE sentences, the IRS gives priority to investigations involving the alleged breach of the public trust by corporate officials at any level.”
FBI Cincinnati Special Agent in Charge Keith L. Bennett noted the significant sentences imposed on both Poulsen and Parrett. “This should serve as a warning to those who might be tempted to manipulate the complexities of our financial systems to defraud others. The FBI stands ready to root out those who would do so, bring them to the judicial system and ensure they lose both their ill-gotten wealth and their freedom.”
Witnesses testified at both trials that Poulsen, Parrett and other NCFE executives engaged in a scheme from 1995 until the collapse of the company to deceive investors and rating agencies about the financial health of NCFE and how investors’ money would be used. NCFE bought accounts receivable from healthcare providers using money NCFE obtained through the sale of asset-backed notes to institutional investors, including pension funds, insurance companies and churches.
Evidence at both trials showed that NCFE misused investors’ money and made unsecured loans to health care providers, including those owned in whole or in part by Poulsen, Parrett and another owner of NCFE, Donald H. Ayers. Former employees testified that Poulsen, Parrett and other NCFE executives covered up the fraud by lying to investors and rating agencies. The government presented evidence that Poulsen and others created investor reports containing fabricated data and moved money back and forth between programs in order to make it appear that NCFE was in compliance with its own governing documents. Evidence showed that Poulsen and Parrett knew the business model NCFE presented to the investing public differed significantly from the way NCFE actually conducted business.
Four other NCFE executives have been convicted in connection with the fraud. Donald H. Ayers, an NCFE vice chairman, chief operating officer, director and an owner of the company, was found guilty on charges of conspiracy, securities fraud and money laundering and was sentenced to 15 years in prison. Randolph H. Speer, NCFE’s chief financial officer, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering and was sentenced to 12 years in prison. Roger S. Faulkenberry, vice president for client development, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering and was sentenced to 10 years in prison. James E. Dierker, chief credit officer, was found guilty on charges of conspiracy and money laundering and was sentenced to five years in prison. In addition, four other former NCFE executives have pleaded guilty in connection with this fraud.
The cases were prosecuted by the U.S. Attorney’s Office for the Southern District of Ohio and the Criminal Division’s Fraud Section and investigated by FBI Special Agents Matt Daly, Ingrid Schmidt and Tad Morris; IRS Special Agents Greg Ruwe and Mark Bailey, U.S. Postal Inspector Dave Mooney; and Immigration and Customs Enforcement Agent Celeste Koszut. Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Assistant Chief Kathleen McGovern and Senior Trial Attorney Wes R. Porter of the Criminal Division’s Fraud Section prosecuted Parrett, Ayers, Speer, Faulkenberry and Dierker. Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Assistant Chief Kathleen McGovern, Trial Attorneys N. Nathan Dimock, and former Trial Attorney Leo Wise of the Criminal Division’s Fraud Section prosecuted Poulsen. Fraud Section Paralegal Specialists Crystal Curry and Sarah Marberg assisted with these cases.
Monday, March 30, 2009
Executive Gets 30 Years in $2.9 Billion Fraud - One acquittal, the ex-CFO of Columbia Homecare Group
Executive Gets 30 Years in $2.9 Billion Fraud
By ZACHERY KOUWE
Published: March 27, 2009
NYT
Nearly seven years after National Century Financial Enterprises collapsed in a $2.9 billion fraud, its founder, Lance K. Poulsen, was sentenced to 30 years in prison on Friday in one of the harshest white-collar punishments in history.
Mr. Poulsen was convicted in October of leading a vast fraud as chief executive of National Century, a company based in Dublin, Ohio, that provided financing for hundreds of clinics, hospitals and other health care providers.
The company’s fall in 2002 contributed to the bankruptcies of 275 health care facilities and cost Credit Suisse and the Pacific Investment Management Company, the nation’s biggest bond fund investor, more than $540 million.
“Mr. Poulsen is an architect of a fraud of such magnitude that it would make sophisticated financial analysts shudder,” Judge Algenon Marbley said in Federal District Court in Ohio. “It is considered the largest fraud at a private company in the United States. Mr. Poulsen perpetrated this fraud over a seven-year period and went to enormous lengths to conceal it.”
Mr. Poulsen, 65, is already serving a 10-year sentence for trying to bribe the main witness against him in the case. His sentence will run concurrently with the sentence for witness tampering.
Mr. Marbley’s decision signals that federal judges could begin imposing harsher sentences for white-collar crime in response to the rise in public outrage over corporate fraud after the discovery of Bernard L. Madoff’s multibillion-dollar Ponzi scheme. The sentence for Mr. Poulsen exceeds the 25 years given to Bernard J. Ebbers, the former chief executive of WorldCom, and the 24 years given to Jeffrey K. Skilling, the former Enron chief.
Mr. Marbley also handed out a 25-year sentence to Rebecca Parrett, a former National Century executive who became a fugitive after she was convicted last year.
Mr. Poulsen and Ms. Parrett were also ordered to pay $2.38 billion in restitution.
Before it filed for bankruptcy in 2002, National Century provided loans to a variety of health care companies that were backed by payments expected to be made by insurance companies and government programs like Medicaid and Medicare. Mr. Poulsen then packaged the loans into bonds and sold them to institutional investors and Wall Street firms.
In many cases, the company deliberately lent more to the facilities, many of which were owned by Mr. Poulsen, than their receivables were worth. The scheme finally came apart in the spring of 2002 when investors began to question the value of the loans, which forced National Century into a liquidity crisis.
By ZACHERY KOUWE
Published: March 27, 2009
NYT
Nearly seven years after National Century Financial Enterprises collapsed in a $2.9 billion fraud, its founder, Lance K. Poulsen, was sentenced to 30 years in prison on Friday in one of the harshest white-collar punishments in history.
Mr. Poulsen was convicted in October of leading a vast fraud as chief executive of National Century, a company based in Dublin, Ohio, that provided financing for hundreds of clinics, hospitals and other health care providers.
The company’s fall in 2002 contributed to the bankruptcies of 275 health care facilities and cost Credit Suisse and the Pacific Investment Management Company, the nation’s biggest bond fund investor, more than $540 million.
“Mr. Poulsen is an architect of a fraud of such magnitude that it would make sophisticated financial analysts shudder,” Judge Algenon Marbley said in Federal District Court in Ohio. “It is considered the largest fraud at a private company in the United States. Mr. Poulsen perpetrated this fraud over a seven-year period and went to enormous lengths to conceal it.”
Mr. Poulsen, 65, is already serving a 10-year sentence for trying to bribe the main witness against him in the case. His sentence will run concurrently with the sentence for witness tampering.
Mr. Marbley’s decision signals that federal judges could begin imposing harsher sentences for white-collar crime in response to the rise in public outrage over corporate fraud after the discovery of Bernard L. Madoff’s multibillion-dollar Ponzi scheme. The sentence for Mr. Poulsen exceeds the 25 years given to Bernard J. Ebbers, the former chief executive of WorldCom, and the 24 years given to Jeffrey K. Skilling, the former Enron chief.
Mr. Marbley also handed out a 25-year sentence to Rebecca Parrett, a former National Century executive who became a fugitive after she was convicted last year.
Mr. Poulsen and Ms. Parrett were also ordered to pay $2.38 billion in restitution.
Before it filed for bankruptcy in 2002, National Century provided loans to a variety of health care companies that were backed by payments expected to be made by insurance companies and government programs like Medicaid and Medicare. Mr. Poulsen then packaged the loans into bonds and sold them to institutional investors and Wall Street firms.
In many cases, the company deliberately lent more to the facilities, many of which were owned by Mr. Poulsen, than their receivables were worth. The scheme finally came apart in the spring of 2002 when investors began to question the value of the loans, which forced National Century into a liquidity crisis.
Friday, March 20, 2009
AIG POLITICAL CONTRIBUTIONS
March 8, 2004
AIG, Citigroup Battle Unions on Political Donation Disclosure
http://www.bloomberg.com/apps/news?pid=10000103&sid=arBbK7iUfgPM&refer=us
Merrill Backs Bush
Bush derives much of his campaign donations from executives at publicly traded companies, with employees at Merrill Lynch & Co., UBS AG and MBNA Corp. among those making up 13 of his top 20 donors last year, contributing $2.9 million.
Six of the top 20 donors to Senator John Kerry, who has clinched the Democratic Party's presidential nomination, were employees of listed companies, and they gave $275,000 since he began campaigning in January 2003, according to the Center for Responsive Politics.
The shareholder resolutions were filed in December and January by the Service Employees International Union and other affiliates of the AFL-CIO, a federation of 64 unions representing 13 million people. They seek annual reports about corporate donations and ``an accounting of the company's resources, including property and personnel, contributed or donated to'' political parties or candidates.
General Electric
Shareholder proposals included in proxy ballots seldom garner a majority of votes, though a high percentage of favorable returns can send a message to the board, said Sabato at the University of Virginia.
Many of the companies targeted by the proposal asked the SEC to let them exclude the information from their proxies on the grounds that political involvement is part of ordinary business. Warren, New Jersey-based Chubb Corp., which was denied its request to omit the proposal, said in letters to the SEC that the measure would constitute micro-management by shareholders.
``Providing detailed information regarding which members of management influence which decisions about political contributions extends deeply into the company's daily decision- making procedures,'' Chubb wrote.
The SEC denied a request by Wells Fargo & Co. to omit the resolutions from its proxy. Wells Fargo, based in San Francisco, will post its policy on political contributions on its Web site in accordance with the unions' request, said spokeswoman Julia Tunis.
General Electric Co., whose chairman and chief executive officer, Jeffrey Immelt, 48, donated $2,000 to the Bush campaign, included the resolution in its proxy -- along with a recommendation to shareholders to vote against it.
``Because GE is committed to complying with applicable campaign finance laws, including all reporting requirements, we do not believe the report requested in this proposal is necessary,'' the Fairfield, Connecticut-based company said in its proxy.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/18/AR2009031803201.html?wpisrc=newsletter
From 1987 to 2004, the company's financial products unit contributed more than $5 billion to AIG's pretax income. In spring 2005, after I left the company, AIG's credit rating was downgraded. It would have been logical for AIG's new management to end or reduce its business of writing credit default swaps because of the risk it faced of having to post billions of dollars in additional collateral in connection with certain credit default protection. Yet AIG ramped up its credit default swaps business; significantly, the quality of the securities AIG wrote credit protection for deteriorated, and the company plunged into subprime mortgages. The results were disastrous.
AIG, Citigroup Battle Unions on Political Donation Disclosure
http://www.bloomberg.com/apps/news?pid=10000103&sid=arBbK7iUfgPM&refer=us
Merrill Backs Bush
Bush derives much of his campaign donations from executives at publicly traded companies, with employees at Merrill Lynch & Co., UBS AG and MBNA Corp. among those making up 13 of his top 20 donors last year, contributing $2.9 million.
Six of the top 20 donors to Senator John Kerry, who has clinched the Democratic Party's presidential nomination, were employees of listed companies, and they gave $275,000 since he began campaigning in January 2003, according to the Center for Responsive Politics.
The shareholder resolutions were filed in December and January by the Service Employees International Union and other affiliates of the AFL-CIO, a federation of 64 unions representing 13 million people. They seek annual reports about corporate donations and ``an accounting of the company's resources, including property and personnel, contributed or donated to'' political parties or candidates.
General Electric
Shareholder proposals included in proxy ballots seldom garner a majority of votes, though a high percentage of favorable returns can send a message to the board, said Sabato at the University of Virginia.
Many of the companies targeted by the proposal asked the SEC to let them exclude the information from their proxies on the grounds that political involvement is part of ordinary business. Warren, New Jersey-based Chubb Corp., which was denied its request to omit the proposal, said in letters to the SEC that the measure would constitute micro-management by shareholders.
``Providing detailed information regarding which members of management influence which decisions about political contributions extends deeply into the company's daily decision- making procedures,'' Chubb wrote.
The SEC denied a request by Wells Fargo & Co. to omit the resolutions from its proxy. Wells Fargo, based in San Francisco, will post its policy on political contributions on its Web site in accordance with the unions' request, said spokeswoman Julia Tunis.
General Electric Co., whose chairman and chief executive officer, Jeffrey Immelt, 48, donated $2,000 to the Bush campaign, included the resolution in its proxy -- along with a recommendation to shareholders to vote against it.
``Because GE is committed to complying with applicable campaign finance laws, including all reporting requirements, we do not believe the report requested in this proposal is necessary,'' the Fairfield, Connecticut-based company said in its proxy.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/18/AR2009031803201.html?wpisrc=newsletter
From 1987 to 2004, the company's financial products unit contributed more than $5 billion to AIG's pretax income. In spring 2005, after I left the company, AIG's credit rating was downgraded. It would have been logical for AIG's new management to end or reduce its business of writing credit default swaps because of the risk it faced of having to post billions of dollars in additional collateral in connection with certain credit default protection. Yet AIG ramped up its credit default swaps business; significantly, the quality of the securities AIG wrote credit protection for deteriorated, and the company plunged into subprime mortgages. The results were disastrous.
Wall Street Journal - Richard Scott HEALTHCARE BANDIT
2009-The Wall Street Journal reported that Richard Scott, "the former chief executive of HCA Inc," had formed the non-profit organization Conservatives for Patients' Rights as part of a "lobbying campaign to derail or modify" President Obama's health care proposals, but failed to note that Scott resigned from HCA in 1997 amid a federal investigation into the company's Medicare billing, physician recruiting, and home-care practices. HCA eventually pleaded guilty to fraud charges and paid approximately $1.7 billion in fines and penalties.
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
WASHINGTON, D.C.
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
Why does this matter? The wrath of Richard Scott and friends is to this day still affecting main street America.
Who is Richard Scott? More importantly, who are Richard Rainwater & his wife, Darla Moore?
Before GW Bush was affiliated with Richard Rainwater may I remind you-Richard Scott was the ex-partner of Richard Rainwater with Columbia Homecare Group.
In 1997, Fortune magazine ran a cover story on successful business executive Darla Moore, titled "The Toughest Babe in Business."….She created the corporate bankruptcy finance tool, DIP, debtor in possession while at a Wall Street bank.
Columbia/HCA is a partnership of financier Richard Rainwater of Ft. Worth and lawyer Richard Scott. Scott was recently terminated by Darla Moore, the wife of Richard Rainwater and according to Fortune Magazine, the “Toughest Babe in the Business”.
As part of Richard Scott's severance package from Columbia he was paid $5.13 million and given a five year consulting contract at $950,000 per year. His former president, Mr. Vandewater was paid $3.24 million and given a five year consulting contract at $600,000 per year.
Both former executives are allowed to exercise vested stock options within 90 days. Scott owned or had options on 9.4 million shares of Columbia stock as of May, 1997. Vanderwater controlled 617,375 shares. Columbia has agreed to pay attorney's fees and any fines or judgments against the two. In addition, the two former executives get their office expenses paid for two years including secretaries. If they move within the next two years their moving expenses are paid by Columbia/HCA. Not a bad deal for someone who just got fired! Wow! What a surprise!
Rainwater also owned a large stake in Magellan Health Care which controls Charter Medical. Magellan, run by Darla Moore, is the largest network of psychiatric hospitals in the country. They are becoming more and more involved in obtaining government money for services formerly not covered as health care, according to Fortune Magazine.
Columbia just decided to sell its home health-care business and its head announced she is forming a company of her own. The home care unit is valued at $ 450 million.
At least two other top executives of Columbia have resigned.
On Sept 8, 1998 Standard and Poors downgraded the bonds of Charter/HCA to negative bases on poor earnings. Looks like Rainwater and his Crescent Cos' have finally stumbled. One source within the company said it would be a long while before any new high-ticket acquisitions would take place. A previous deal with Prudential is in danger of being jettisoned.
Why does this matter- September 8, 1998?
We must review the case that just ended in December 2008 in Columbus Ohio with National Century Financial Enterprises which was headquartered in Dublin, Ohio. It began in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio
National Century Financial Enterprises:
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
Just a reminder relating to the need for ‘healthcare financial service’ i.e. (NCFE) National Century Financial Enterprises; home health - which was struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.
3/9/2006
10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
WASHINGTON, D.C.
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
Why does this matter? The wrath of Richard Scott and friends is to this day still affecting main street America.
Who is Richard Scott? More importantly, who are Richard Rainwater & his wife, Darla Moore?
Before GW Bush was affiliated with Richard Rainwater may I remind you-Richard Scott was the ex-partner of Richard Rainwater with Columbia Homecare Group.
In 1997, Fortune magazine ran a cover story on successful business executive Darla Moore, titled "The Toughest Babe in Business."….She created the corporate bankruptcy finance tool, DIP, debtor in possession while at a Wall Street bank.
Columbia/HCA is a partnership of financier Richard Rainwater of Ft. Worth and lawyer Richard Scott. Scott was recently terminated by Darla Moore, the wife of Richard Rainwater and according to Fortune Magazine, the “Toughest Babe in the Business”.
As part of Richard Scott's severance package from Columbia he was paid $5.13 million and given a five year consulting contract at $950,000 per year. His former president, Mr. Vandewater was paid $3.24 million and given a five year consulting contract at $600,000 per year.
Both former executives are allowed to exercise vested stock options within 90 days. Scott owned or had options on 9.4 million shares of Columbia stock as of May, 1997. Vanderwater controlled 617,375 shares. Columbia has agreed to pay attorney's fees and any fines or judgments against the two. In addition, the two former executives get their office expenses paid for two years including secretaries. If they move within the next two years their moving expenses are paid by Columbia/HCA. Not a bad deal for someone who just got fired! Wow! What a surprise!
Rainwater also owned a large stake in Magellan Health Care which controls Charter Medical. Magellan, run by Darla Moore, is the largest network of psychiatric hospitals in the country. They are becoming more and more involved in obtaining government money for services formerly not covered as health care, according to Fortune Magazine.
Columbia just decided to sell its home health-care business and its head announced she is forming a company of her own. The home care unit is valued at $ 450 million.
At least two other top executives of Columbia have resigned.
On Sept 8, 1998 Standard and Poors downgraded the bonds of Charter/HCA to negative bases on poor earnings. Looks like Rainwater and his Crescent Cos' have finally stumbled. One source within the company said it would be a long while before any new high-ticket acquisitions would take place. A previous deal with Prudential is in danger of being jettisoned.
Why does this matter- September 8, 1998?
We must review the case that just ended in December 2008 in Columbus Ohio with National Century Financial Enterprises which was headquartered in Dublin, Ohio. It began in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio
National Century Financial Enterprises:
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
Just a reminder relating to the need for ‘healthcare financial service’ i.e. (NCFE) National Century Financial Enterprises; home health - which was struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.
3/9/2006
10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors
Friday, March 13, 2009
Net Worth:$1.7 bil
Fortune:self made
Source:HCA Healthcare
Age:70
Country Of Citizenship:United States
Residence:Nashville, Tennessee
Industry:Health Care
Education:Vanderbilt University, Bachelor of Arts / Science, Washington University, Medical Doctor
Marital Status:married, 3 children
Former Air Force flight surgeon took HCA, nation's largest hospital operator, private with Bain Capital, KKR and Merrill Lynch in 2006. At the time the $33 billion leveraged buyout was the largest in history; eclipsed by $45 billion purchase of power giant TXU four months later. "Being private in these times is a blessing. The timing couldn't have been better." Founded Hospital Corp. of America with father and Jack Massey 1968; took public following year. Led management buyout 1989; took public again 3 years later. Merged with Richard Rainwater's 1994, became chief exec again 3 years later. Nashville native left board in January, now focused on philanthropy through family foundation.
Are you aware of the largest private financial fraud in our country's history that ended December 2008? I will give you a hint: It was not 'low income housing' mortgages, it was publicly traded HEALTHCARE Companies including Columbia dumping their losing asset, home healthcare into a private company.
The one and only executive acquitted in this case out of more than 12 convicted was James K Happ; jurors said prosecutor did not do his job! Guess where James K Happ came from? Columbia Homecare Group, he was the CFO!
Fortune:self made
Source:HCA Healthcare
Age:70
Country Of Citizenship:United States
Residence:Nashville, Tennessee
Industry:Health Care
Education:Vanderbilt University, Bachelor of Arts / Science, Washington University, Medical Doctor
Marital Status:married, 3 children
Former Air Force flight surgeon took HCA, nation's largest hospital operator, private with Bain Capital, KKR and Merrill Lynch in 2006. At the time the $33 billion leveraged buyout was the largest in history; eclipsed by $45 billion purchase of power giant TXU four months later. "Being private in these times is a blessing. The timing couldn't have been better." Founded Hospital Corp. of America with father and Jack Massey 1968; took public following year. Led management buyout 1989; took public again 3 years later. Merged with Richard Rainwater's 1994, became chief exec again 3 years later. Nashville native left board in January, now focused on philanthropy through family foundation.
Are you aware of the largest private financial fraud in our country's history that ended December 2008? I will give you a hint: It was not 'low income housing' mortgages, it was publicly traded HEALTHCARE Companies including Columbia dumping their losing asset, home healthcare into a private company.
The one and only executive acquitted in this case out of more than 12 convicted was James K Happ; jurors said prosecutor did not do his job! Guess where James K Happ came from? Columbia Homecare Group, he was the CFO!
Wednesday, March 11, 2009
Where does Assosciated Press get their information...Bigger then Enron...they don't even touch the real story...Richard Scott can you find him here?
Sentencing set for Ohio CEO in $1.9B fraud case
Associated Press - March 11, 2009 12:13 PM ET
COLUMBUS, Ohio (AP) - The former chief executive of a failed health care financing company will learn his sentence later this month in a $1.9 billion fraud case.
U.S. District Court Judge Algenon Marbley will sentence 65-year-old Lance Poulsen on March 27 in Columbus.
Marbley set the date in a court filing Wednesday.
Poulsen was convicted in October on 12 counts of securities fraud, wire fraud and money laundering.
Prosecutors likened the fraud uncovered at National Century Financial Enterprises in suburban Columbus to the Enron or WorldCom scandals.
Poulsen faces up to 135 years in prison, though his actual sentence will likely be shorter under federal sentencing guidelines.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Associated Press - March 11, 2009 12:13 PM ET
COLUMBUS, Ohio (AP) - The former chief executive of a failed health care financing company will learn his sentence later this month in a $1.9 billion fraud case.
U.S. District Court Judge Algenon Marbley will sentence 65-year-old Lance Poulsen on March 27 in Columbus.
Marbley set the date in a court filing Wednesday.
Poulsen was convicted in October on 12 counts of securities fraud, wire fraud and money laundering.
Prosecutors likened the fraud uncovered at National Century Financial Enterprises in suburban Columbus to the Enron or WorldCom scandals.
Poulsen faces up to 135 years in prison, though his actual sentence will likely be shorter under federal sentencing guidelines.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Sunday, March 8, 2009
Richard Scott the MEDICAID FRAUD THIEF writes to President....PLEASE !
"Mr. President, Americans don’t want surprises…Please tell us the specifics of
your plan so that all Americans can make a judgment on it for themselves."
The epitome of Fraud Waste and Abuse---Richrd Scott & Richard Rainwater!
Summary: The Wall Street Journal reported that Richard Scott, "the former chief executive of HCA Inc," had formed the non-profit organization Conservatives for Patients' Rights as part of a "lobbying campaign to derail or modify" President Obama's health care proposals, but failed to note that Scott resigned from HCA in 1997 amid a federal investigation into the company's Medicare billing, physician recruiting, and home-care practices. HCA eventually pleaded guilty to fraud charges and paid approximately $1.7 billion in fines and penalties.
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
Who is Richard Scott? Who is Richard Rainwater? Who is Darla Moore?
Dear Mr. President:
Americans generally agree that our health care system is too expensive.
You made health care a centerpiece of your campaign and just last week announced a sweeping
$634 billion plan to reform our nation’s health care system. While you were very specific
about how you would pay for this plan, you offered virtually no details on your plan itself.
One of our basic rights as consumers is to be able to shop and compare. As taxpayers, we should have
the ability to not only know the cost of your plan, but the specifics of what we get out of your plan.
That is the only way Americans can make an informed decision.
As you convene your health care summit at the White House, we call upon you to lay out the
details and specifics of your plan for all to see. We are entitled to a healthy debate on how
your plan will impact each of us.
Many Americans are leery about allowing the government to have a more significant role in
making private health care decisions that should only be made by a patient and their doctor.
Americans learned that buried deep inside your stimulus plan was a very ominous sounding
“Federal Coordinating Council.” This “Council” could have a very far reaching impact on
how our doctors treat us in the future.
Mr. President, Americans don’t want surprises. And we don’t want national boards or faceless
bureaucrats taking away our rights to make our own health decisions in the name of
controlling costs.
Sharing the details of your plan is the best way to allay our fears and end the speculation. Please
tell us the specifics of your plan so that all Americans can make a judgment on it for themselves.
Respectfully,
Rick Scott
Conservatives for Patients’ Rights
http://cprights.org/pdf/openletter20090305.pdf
your plan so that all Americans can make a judgment on it for themselves."
The epitome of Fraud Waste and Abuse---Richrd Scott & Richard Rainwater!
Summary: The Wall Street Journal reported that Richard Scott, "the former chief executive of HCA Inc," had formed the non-profit organization Conservatives for Patients' Rights as part of a "lobbying campaign to derail or modify" President Obama's health care proposals, but failed to note that Scott resigned from HCA in 1997 amid a federal investigation into the company's Medicare billing, physician recruiting, and home-care practices. HCA eventually pleaded guilty to fraud charges and paid approximately $1.7 billion in fines and penalties.
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
Who is Richard Scott? Who is Richard Rainwater? Who is Darla Moore?
Dear Mr. President:
Americans generally agree that our health care system is too expensive.
You made health care a centerpiece of your campaign and just last week announced a sweeping
$634 billion plan to reform our nation’s health care system. While you were very specific
about how you would pay for this plan, you offered virtually no details on your plan itself.
One of our basic rights as consumers is to be able to shop and compare. As taxpayers, we should have
the ability to not only know the cost of your plan, but the specifics of what we get out of your plan.
That is the only way Americans can make an informed decision.
As you convene your health care summit at the White House, we call upon you to lay out the
details and specifics of your plan for all to see. We are entitled to a healthy debate on how
your plan will impact each of us.
Many Americans are leery about allowing the government to have a more significant role in
making private health care decisions that should only be made by a patient and their doctor.
Americans learned that buried deep inside your stimulus plan was a very ominous sounding
“Federal Coordinating Council.” This “Council” could have a very far reaching impact on
how our doctors treat us in the future.
Mr. President, Americans don’t want surprises. And we don’t want national boards or faceless
bureaucrats taking away our rights to make our own health decisions in the name of
controlling costs.
Sharing the details of your plan is the best way to allay our fears and end the speculation. Please
tell us the specifics of your plan so that all Americans can make a judgment on it for themselves.
Respectfully,
Rick Scott
Conservatives for Patients’ Rights
http://cprights.org/pdf/openletter20090305.pdf
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 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)
Thursday, March 5, 2009
The epitome of Fraud Waste and Abuse
The epitome of Fraud Waste and AbuseSummary: The Wall Street Journal reported that Richard Scott, "the former chief executive of HCA Inc," had formed the non-profit organization Conservatives for Patients' Rights as part of a "lobbying campaign to derail or modify" President Obama's health care proposals, but failed to note that Scott resigned from HCA in 1997 amid a federal investigation into the company's Medicare billing, physician recruiting, and home-care practices. HCA eventually pleaded guilty to fraud charges and paid approximately $1.7 billion in fines and penalties.
Who is Richard Scott? Who is Richard Rainwater? Who is Darla Moore?
Before GW Bush was affiliated with Richard Rainwater may I remind you-Richard Scott was the ex-partner of Richard Rainwater with Columbia Homecare Group.
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
Why does this matter? Because the wrath of Richard Scott’s fraud just ended in December 2008 in the largest private financial fraud case in our country's history in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio, headquarters.
Guess where Columbia and many of the other publicly traded healthcare companies DUMPED their losing asset, Home healthcare? National Century Financial Enterprises
National Century Financial Enterprises:
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
The following is an excerpt from a 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors
March 26, 2008; By Jodi Andes; THE COLUMBUS DISPATCH
Nine other executives have been convicted or pleaded guilty in National Century's collapse. Only Poulsen and executive James Happ still await trial.
Only Poulsen and executive James Happ still await trial?
December 9, 2008. James K. Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud; the 11th National Century executive to be tried or admit guilt. , Also today, a former friend of Happ's testified that, while working at National Century, Happ boasted that he never could be charged with any fraud because he didn't sign anything.
December 18, 2008 - The ONE AND ONLY acquittal; James K Happ!
By Jodi Andes THE COLUMBUS DISPATCH
Prosecutors' case fell short, juror says National Century fraud case produces 1st acquittal ; The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
July 26, 1997- Where was James K Happ?
SEC Form September 9, 2003 Annual Meeting of Stockholders, Med Diversified Inc.:
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency.
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc.,
… In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations
Columbia-Richard Rainwater-GW Bush-and the PROSECUTOR did not do his JOB!
Who is Richard Scott? Who is Richard Rainwater? Who is Darla Moore?
Before GW Bush was affiliated with Richard Rainwater may I remind you-Richard Scott was the ex-partner of Richard Rainwater with Columbia Homecare Group.
THURSDAY, JUNE 26, 2003; WWW.USDOJ.GOV;
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED; HCA INVESTIGATION NETS RECORD TOTAL OF $1.7 BILLION
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
Why does this matter? Because the wrath of Richard Scott’s fraud just ended in December 2008 in the largest private financial fraud case in our country's history in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio, headquarters.
Guess where Columbia and many of the other publicly traded healthcare companies DUMPED their losing asset, Home healthcare? National Century Financial Enterprises
National Century Financial Enterprises:
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
The following is an excerpt from a 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors
March 26, 2008; By Jodi Andes; THE COLUMBUS DISPATCH
Nine other executives have been convicted or pleaded guilty in National Century's collapse. Only Poulsen and executive James Happ still await trial.
Only Poulsen and executive James Happ still await trial?
December 9, 2008. James K. Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud; the 11th National Century executive to be tried or admit guilt. , Also today, a former friend of Happ's testified that, while working at National Century, Happ boasted that he never could be charged with any fraud because he didn't sign anything.
December 18, 2008 - The ONE AND ONLY acquittal; James K Happ!
By Jodi Andes THE COLUMBUS DISPATCH
Prosecutors' case fell short, juror says National Century fraud case produces 1st acquittal ; The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
July 26, 1997- Where was James K Happ?
SEC Form September 9, 2003 Annual Meeting of Stockholders, Med Diversified Inc.:
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency.
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc.,
… In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations
Columbia-Richard Rainwater-GW Bush-and the PROSECUTOR did not do his JOB!
Wednesday, March 4, 2009
Who is Richard Scott? Columbia Homecare Group, Inc. and National Century Financial Enterprises
Who is Richard Scott? Before GW Bush was affiliated with Richard Rainwater may I remind you-Richard Scott was the ex-partner of Richard Rainwater with Columbia Homecare Group.
From the July 26, 1997, Los Angeles Times article:
A controversial deal maker whose hard-nosed business tactics have reshaped the medical industry resigned Friday as scandal engulfed the vast hospital empire he had assembled over the last decade.
Richard Scott -- sometimes called "the Bill Gates of health care" -- quit as chairman of Columbia/HCA Healthcare Corp. amid a massive federal investigation into the Medicare billing, physician recruiting and home-care practices of the nation's largest for-profit health care company.
Though the federal probe focuses on other states, Columbia's aggressive expansion has included California, where the company operates 15 hospitals, 13 surgery centers and 10 home-health-care agencies, employing more than 11,000.
Why does this matter? Because the wrath of Richard Scott’s fraud just ended in December 2008 in the largest private financial fraud case in our country's history in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio, headquarters.
Just a reminder relating to the need for a financial service institute as NCFE: home health - which is struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
The following is an excerpt from a 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors
March 26, 2008; By Jodi Andes; THE COLUMBUS DISPATCH; Nine other executives have been convicted or pleaded guilty in National Century's collapse. Only Poulsen and executive James Happ still await trial.December 18, 2008 - The ONE AND ONLY acquittal; By Jodi Andes THE COLUMBUS DISPATCH ; Prosecutors' case fell short, juror says National Century fraud case produces 1st acquittal ; The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said. Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
July 26, 1997- Where was James K Happ?
SEC Form September 9, 2003 Annual Meeting of Stockholders, Med Diversified Inc.:
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency.
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc.,
… In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations
Who purchased the majority of this divestiture in late ’98 & early ’99? Medshares, Inc. of Memphis, Tennessee. Who financed this divestiture? National Century Financial Enterprises, Inc.
From the July 26, 1997, Los Angeles Times article:
A controversial deal maker whose hard-nosed business tactics have reshaped the medical industry resigned Friday as scandal engulfed the vast hospital empire he had assembled over the last decade.
Richard Scott -- sometimes called "the Bill Gates of health care" -- quit as chairman of Columbia/HCA Healthcare Corp. amid a massive federal investigation into the Medicare billing, physician recruiting and home-care practices of the nation's largest for-profit health care company.
Though the federal probe focuses on other states, Columbia's aggressive expansion has included California, where the company operates 15 hospitals, 13 surgery centers and 10 home-health-care agencies, employing more than 11,000.
Why does this matter? Because the wrath of Richard Scott’s fraud just ended in December 2008 in the largest private financial fraud case in our country's history in 2002 when FBI raided the offices of National Century Financial Enterprises Dublin, Ohio, headquarters.
Just a reminder relating to the need for a financial service institute as NCFE: home health - which is struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
The following is an excerpt from a 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors
March 26, 2008; By Jodi Andes; THE COLUMBUS DISPATCH; Nine other executives have been convicted or pleaded guilty in National Century's collapse. Only Poulsen and executive James Happ still await trial.December 18, 2008 - The ONE AND ONLY acquittal; By Jodi Andes THE COLUMBUS DISPATCH ; Prosecutors' case fell short, juror says National Century fraud case produces 1st acquittal ; The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said. Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
July 26, 1997- Where was James K Happ?
SEC Form September 9, 2003 Annual Meeting of Stockholders, Med Diversified Inc.:
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency.
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc.,
… In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations
Who purchased the majority of this divestiture in late ’98 & early ’99? Medshares, Inc. of Memphis, Tennessee. Who financed this divestiture? National Century Financial Enterprises, Inc.
Who is Richard Scott? What the Wall Street Journal won't reveal
Group launches health care offensive
By JONATHAN MARTIN | 3/3/09 4:18 AM EST
Firing some of the first shots in the coming showdown over health care, a conservative group led by the former owner of the Hospital Corporation of America is beginning a multimillion-dollar campaign Tuesday in opposition to government-run coverage.
Conservatives for Patients Rights is going on TV, radio and the Web in the same week President Barack Obama hosts a health care summit at the White House. The group’s leader, Richard Scott, is hoping a pro-free-market message will rally the right to join the fray on what may be the most hard-fought policy battle in the first year of the new administration.
“If we have more government involvement we’re going to have dramatically worse health care,” said Scott, the wealthy health care executive who is overseeing the effort and seeding it with $5 million of his own cash.
Scott, a major GOP donor, is pushing for four principles to any health care reform package: individual choice, competition between carriers, giving patients’ ownership over their own coverage and rewarding those who make healthy lifestyle choices.
“I want health care reform to happen but I want it the right way,” Scott said.
Toward that goal, Scott’s group is enlisting a group of veteran Republican consultants to fashion a multi-media battle, warning against the move toward more government involvement. The new group starts a three-week TV and radio campaign featuring Scott Tuesday and will plaster the Internet with ads while also launching its homepage.
The goal is to provide conservatives with a central organization to resist any move by Obama and congressional Democrats toward universal coverage. Scott said the group would spend up to $20 million on the campaign, and volunteered that he would consider reaching further into his pocket.
Scott shied away from comparing his effort to the famous industry-led “Harry and Louise” ad campaign that helped torpedo universal coverage in the Clinton administration, saying that while they may receive some aid from health care stakeholders, the “goal is to get support from individuals.”
Scott’s first salvo is being fired Tuesday largely on conservative talk radio shows and on cable news.
“Imagine waking up one day and all your medical decisions are made by a central national board,” Scott says in the radio ad. “Bureaucrats decide the treatments you receive, the drugs you take, even the doctors you see.”
He goes on to raise the prospect of “national boards” and “waiting lists” as in the nationalized systems of Great Britain and Canada. “That’s what some in Washington mean by reform,” Scott says in the spot.
Page 2
Some on the left have already formed their own group, Health Care for America Now, a coalition to push for guaranteed health care for all Americans. The group has a $35 million budget this year and is planning on spending half of that on advertising in addition to holding grass-roots events in Washington, and in the districts of key members of Congress.
“We are fully operational, organized, and mobilized to make sure Congress supports the president’s plan to win quality, affordable health care for all this year,” said Jacki Schechner, the group’s communications director
Pro-health reform activists also have begun circulating information in an effort to discredit Scott, a move that underscores the huge stakes involved in the issue.
According to a 2000 article in Forbes, Scott was forced to resign as head of what became known as Columbia/HCA after fraud charges against the massive health care company in 1997. He was replaced by Thomas Frist Jr., the original founder of HCA and brother of future Senate Majority Leader Bill Frist (R-Tenn.)
The company eventually paid over $880 million to reach a settlement with the Justice Department in 2002 on the charges.
Obama already has sought to rebut criticism that he wants a government takeover of health care by outlining eight principles of any overhaul, including letting patients stick with their own doctors and health care plans, reducing insurance premiums and guaranteeing that Americans will have a choice of health plans and physicians.
Beyond that, the Obama administration has signaled that it will push back hard on conservatives who try to label Obama’s efforts as “socialized medicine” or a massive government takeover of day-to-day health decisions. In his radio address Saturday, Obama said he’s ready for a fight against anyone who tries to block his efforts to remake health care and other programs.
But that’s exactly one of Scott’s key arguments. He said he’ll try to draw a comparison between Obama’s plan and nationalized health care systems in Great Britain and Canada, during the second round of its campaign, Scott said in an interview.
“We’ll give people information about how single-payer systems…impact the average person that needs expensive care,” he said.
To do so, Scott has enlisted former CNN reporter Gene Randall and another former producer from the cable network to travel to the two countries to gather footage.
Scott is now primarily an investor, but he does own an urgent care company with over 20 facilities across the country. He said he draws a “very insignificant amount of money from Medicare and Medicaid” and that his primary interest is not his own bottom line.
“What I care about is the free-market system,” he said.
Editor’s Note: Conservatives for Patients’ Rights purchased advertising space on POLITICO.com for this campaign.
By JONATHAN MARTIN | 3/3/09 4:18 AM EST
Firing some of the first shots in the coming showdown over health care, a conservative group led by the former owner of the Hospital Corporation of America is beginning a multimillion-dollar campaign Tuesday in opposition to government-run coverage.
Conservatives for Patients Rights is going on TV, radio and the Web in the same week President Barack Obama hosts a health care summit at the White House. The group’s leader, Richard Scott, is hoping a pro-free-market message will rally the right to join the fray on what may be the most hard-fought policy battle in the first year of the new administration.
“If we have more government involvement we’re going to have dramatically worse health care,” said Scott, the wealthy health care executive who is overseeing the effort and seeding it with $5 million of his own cash.
Scott, a major GOP donor, is pushing for four principles to any health care reform package: individual choice, competition between carriers, giving patients’ ownership over their own coverage and rewarding those who make healthy lifestyle choices.
“I want health care reform to happen but I want it the right way,” Scott said.
Toward that goal, Scott’s group is enlisting a group of veteran Republican consultants to fashion a multi-media battle, warning against the move toward more government involvement. The new group starts a three-week TV and radio campaign featuring Scott Tuesday and will plaster the Internet with ads while also launching its homepage.
The goal is to provide conservatives with a central organization to resist any move by Obama and congressional Democrats toward universal coverage. Scott said the group would spend up to $20 million on the campaign, and volunteered that he would consider reaching further into his pocket.
Scott shied away from comparing his effort to the famous industry-led “Harry and Louise” ad campaign that helped torpedo universal coverage in the Clinton administration, saying that while they may receive some aid from health care stakeholders, the “goal is to get support from individuals.”
Scott’s first salvo is being fired Tuesday largely on conservative talk radio shows and on cable news.
“Imagine waking up one day and all your medical decisions are made by a central national board,” Scott says in the radio ad. “Bureaucrats decide the treatments you receive, the drugs you take, even the doctors you see.”
He goes on to raise the prospect of “national boards” and “waiting lists” as in the nationalized systems of Great Britain and Canada. “That’s what some in Washington mean by reform,” Scott says in the spot.
Page 2
Some on the left have already formed their own group, Health Care for America Now, a coalition to push for guaranteed health care for all Americans. The group has a $35 million budget this year and is planning on spending half of that on advertising in addition to holding grass-roots events in Washington, and in the districts of key members of Congress.
“We are fully operational, organized, and mobilized to make sure Congress supports the president’s plan to win quality, affordable health care for all this year,” said Jacki Schechner, the group’s communications director
Pro-health reform activists also have begun circulating information in an effort to discredit Scott, a move that underscores the huge stakes involved in the issue.
According to a 2000 article in Forbes, Scott was forced to resign as head of what became known as Columbia/HCA after fraud charges against the massive health care company in 1997. He was replaced by Thomas Frist Jr., the original founder of HCA and brother of future Senate Majority Leader Bill Frist (R-Tenn.)
The company eventually paid over $880 million to reach a settlement with the Justice Department in 2002 on the charges.
Obama already has sought to rebut criticism that he wants a government takeover of health care by outlining eight principles of any overhaul, including letting patients stick with their own doctors and health care plans, reducing insurance premiums and guaranteeing that Americans will have a choice of health plans and physicians.
Beyond that, the Obama administration has signaled that it will push back hard on conservatives who try to label Obama’s efforts as “socialized medicine” or a massive government takeover of day-to-day health decisions. In his radio address Saturday, Obama said he’s ready for a fight against anyone who tries to block his efforts to remake health care and other programs.
But that’s exactly one of Scott’s key arguments. He said he’ll try to draw a comparison between Obama’s plan and nationalized health care systems in Great Britain and Canada, during the second round of its campaign, Scott said in an interview.
“We’ll give people information about how single-payer systems…impact the average person that needs expensive care,” he said.
To do so, Scott has enlisted former CNN reporter Gene Randall and another former producer from the cable network to travel to the two countries to gather footage.
Scott is now primarily an investor, but he does own an urgent care company with over 20 facilities across the country. He said he draws a “very insignificant amount of money from Medicare and Medicaid” and that his primary interest is not his own bottom line.
“What I care about is the free-market system,” he said.
Editor’s Note: Conservatives for Patients’ Rights purchased advertising space on POLITICO.com for this campaign.
Thursday, February 26, 2009
Federal prosecutors had not done their job
James Happ will not share his former work colleagues’ fate.
Happ, an accountant and former vice president of servicer operations for Dublin-based National Century Financial Enterprises Inc., has been found not guilty of a count each of conspiracy and money laundering conspiracy and three counts of wire fraud.
A 12-member jury at the U.S. District Court in Columbus returned the verdict Wednesday afternoon after a day-and-a-half of deliberations.
Happ was the seventh former executive from National Century to go to trial and the only one to be acquitted. Six former executives were convicted of fraud and four pleaded guilty. Happ was the eleventh and final National Century employee to face criminal charges.
Happ’s trial began Dec. 1 and ended just two weeks later after his defense attorneys declined to put any witnesses on the stand.
In opening arguments, attorney Craig Gillen told jurors that Happ never had a hand in any wrongdoing at the company.
“Jim Happ never told a lie to any investors. Period,” Gillen said.
Happ stood trial on accusations he was part of an executive-level cabal at the medical financing company that defrauded investors for years. A financier for health-care providers like doctors’ offices and hospitals, National Century’s bread and butter was buying accounts receivable from care providers at a discount, then securitizing the receivables into AAA-rated bonds for sale to investors. At its peak, the company employed more than 350 at its office campus in Dublin while recording annual revenue of more than $250 million.
The government has alleged National Century collapsed after running a sophisticated pyramid scheme that fell apart. In addition to purchasing legitimate accounts receivable, the government alleged National Century funded companies owned by its founders without getting receivables in return, effectively making risky unsecured loans with investor cash. The company charged its clients for those advances, the government has said, which inflated National Century’s revenue and generated bonuses for senior executives.
Government attorneys argued that Happ, as the firm’s chief accountant and head of servicer operations, was responsible for making sure that purchased accounts receivable were eligible. In a July 2007 indictment, the government alleged that Happ improperly advanced as much as $5.4 million to a company owned by NCFE founder Lance Poulsen.
The government also accused Happ of ordering a National Century subordinate to remove safeguards on the company’s computer system relative to a health-care provider he planned to join after leaving National Century.
******************************************************************************
Before ENRON, before the Mortgage Fraud, what about the Healthcare Finance Fraud?
JULY 10, 2007
FOR IMMEDIATE RELEASE
http://www.usdoj.gov/usao/ohsn
SUPERSEDING INDICTMENT CHARGES FORMER EXECUTIVES OF HEALTH CARE FINANCING COMPANY WITH CONSPIRACY, FRAUD, MONEY LAUNDERING
"...superseding indictment charging eight former executives of National Century Financial Enterprises (NCFE) with conspiring to defraud investors by diverting millions of dollars in investors' funds, fabricating data in investor reports, and moving money back and forth between accounts in order to conceal investor fund shortfalls. NCFE, based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States ..." before FBI raided the office in Dublin, Oh.
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
JPMORGAN CHASE and CITI PAID GOVERNMENT SETTLED AGREEMENTS FOR FRAUD in National Century Financial Enterprises, Inc. (NCFE), the “LARGEST ‘PRIVATE’ FINANACIAL FRAUD CASE “in our nation's history
February 3, 2008- THE COLUMBUS DISPATCH
By the numbers
All defendants, except for James K Happ, were initially indicted in May, 2006. United States District Judge Algenon L. Marbley will preside over the case which is scheduled for trial on November 5, 2007. National Century Financial Enterprises (NCFE)
Friday, February 8, 2008- Business First of Columbus - Business First
Poulsen isn't the only National Century executive scheduled for a trial apart from the five now in court. James Happ is scheduled for trial in October because "he wasn't charged in connection with the company's failure until last May."
"All defendants, except for Happ...?"
At trial, the government presented evidence that the defendants engaged in a scheme to deceive investors and rating agencies about the financial health of NCFE and how investor monies would be used between May 1998 and May 2001.
Note: May 1998 James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. and used NCFE to finance his divestiture of Columbia Homecare Group’s losing assets, homecare. . , "All defendants, except for Happ...?"
Mr. Happ, as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997 directed the company through the challenging reimbursement climate, … and participated in the divestiture of all of Columbia/HCA's home care operations.
1998-1999 Who financed this divestiture? NCFE- National Century Financial Enterprises.
Where did James K Happ divest the losing assets of Columbia Homecare Group, Inc? One man owned company, Medshares, Inc. in Memphis, TN. A ‘private’ company financed by a ‘private’ financial institution, NCFE.
In July 1999, Medshares, Inc. filed the LARGEST Bankruptcy case in the history of Western Tennessee's bankruptcy court held all of the Dallas-based Columbia Homecare Group, Inc.’s home care units . All entities filed with the court were financed by NCFE. In this courtroom, documents reveal the uproar from scores of lawyers crying fraud in the bankruptcy court and the BANKRUPTCY JUDGE scolded the attorneys and forbade the ‘F’ word in her court. (NO FRAUD)
February 21, 2008 - Associated Press
COLUMBUS, Ohio (AP) - A guilty executive told jurors she told investors "absolutely nothing" about National Century's practices of advancing cash to Memphis, Tenn.-based Medshares, a home-health care provider.
Thursday, December 18, 2008 - National Century fraud case produces 1st acquittal
Prosecutors' case fell short, juror says
By Jodi Andes THE COLUMBUS DISPATCH
The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he
and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. prior to arriving at NCFE and the ONLY executive of NCFE ACQUITTED.
Happ, an accountant and former vice president of servicer operations for Dublin-based National Century Financial Enterprises Inc., has been found not guilty of a count each of conspiracy and money laundering conspiracy and three counts of wire fraud.
A 12-member jury at the U.S. District Court in Columbus returned the verdict Wednesday afternoon after a day-and-a-half of deliberations.
Happ was the seventh former executive from National Century to go to trial and the only one to be acquitted. Six former executives were convicted of fraud and four pleaded guilty. Happ was the eleventh and final National Century employee to face criminal charges.
Happ’s trial began Dec. 1 and ended just two weeks later after his defense attorneys declined to put any witnesses on the stand.
In opening arguments, attorney Craig Gillen told jurors that Happ never had a hand in any wrongdoing at the company.
“Jim Happ never told a lie to any investors. Period,” Gillen said.
Happ stood trial on accusations he was part of an executive-level cabal at the medical financing company that defrauded investors for years. A financier for health-care providers like doctors’ offices and hospitals, National Century’s bread and butter was buying accounts receivable from care providers at a discount, then securitizing the receivables into AAA-rated bonds for sale to investors. At its peak, the company employed more than 350 at its office campus in Dublin while recording annual revenue of more than $250 million.
The government has alleged National Century collapsed after running a sophisticated pyramid scheme that fell apart. In addition to purchasing legitimate accounts receivable, the government alleged National Century funded companies owned by its founders without getting receivables in return, effectively making risky unsecured loans with investor cash. The company charged its clients for those advances, the government has said, which inflated National Century’s revenue and generated bonuses for senior executives.
Government attorneys argued that Happ, as the firm’s chief accountant and head of servicer operations, was responsible for making sure that purchased accounts receivable were eligible. In a July 2007 indictment, the government alleged that Happ improperly advanced as much as $5.4 million to a company owned by NCFE founder Lance Poulsen.
The government also accused Happ of ordering a National Century subordinate to remove safeguards on the company’s computer system relative to a health-care provider he planned to join after leaving National Century.
******************************************************************************
Before ENRON, before the Mortgage Fraud, what about the Healthcare Finance Fraud?
JULY 10, 2007
FOR IMMEDIATE RELEASE
http://www.usdoj.gov/usao/ohsn
SUPERSEDING INDICTMENT CHARGES FORMER EXECUTIVES OF HEALTH CARE FINANCING COMPANY WITH CONSPIRACY, FRAUD, MONEY LAUNDERING
"...superseding indictment charging eight former executives of National Century Financial Enterprises (NCFE) with conspiring to defraud investors by diverting millions of dollars in investors' funds, fabricating data in investor reports, and moving money back and forth between accounts in order to conceal investor fund shortfalls. NCFE, based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States ..." before FBI raided the office in Dublin, Oh.
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
JPMORGAN CHASE and CITI PAID GOVERNMENT SETTLED AGREEMENTS FOR FRAUD in National Century Financial Enterprises, Inc. (NCFE), the “LARGEST ‘PRIVATE’ FINANACIAL FRAUD CASE “in our nation's history
February 3, 2008- THE COLUMBUS DISPATCH
By the numbers
All defendants, except for James K Happ, were initially indicted in May, 2006. United States District Judge Algenon L. Marbley will preside over the case which is scheduled for trial on November 5, 2007. National Century Financial Enterprises (NCFE)
Friday, February 8, 2008- Business First of Columbus - Business First
Poulsen isn't the only National Century executive scheduled for a trial apart from the five now in court. James Happ is scheduled for trial in October because "he wasn't charged in connection with the company's failure until last May."
"All defendants, except for Happ...?"
At trial, the government presented evidence that the defendants engaged in a scheme to deceive investors and rating agencies about the financial health of NCFE and how investor monies would be used between May 1998 and May 2001.
Note: May 1998 James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. and used NCFE to finance his divestiture of Columbia Homecare Group’s losing assets, homecare. . , "All defendants, except for Happ...?"
Mr. Happ, as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997 directed the company through the challenging reimbursement climate, … and participated in the divestiture of all of Columbia/HCA's home care operations.
1998-1999 Who financed this divestiture? NCFE- National Century Financial Enterprises.
Where did James K Happ divest the losing assets of Columbia Homecare Group, Inc? One man owned company, Medshares, Inc. in Memphis, TN. A ‘private’ company financed by a ‘private’ financial institution, NCFE.
In July 1999, Medshares, Inc. filed the LARGEST Bankruptcy case in the history of Western Tennessee's bankruptcy court held all of the Dallas-based Columbia Homecare Group, Inc.’s home care units . All entities filed with the court were financed by NCFE. In this courtroom, documents reveal the uproar from scores of lawyers crying fraud in the bankruptcy court and the BANKRUPTCY JUDGE scolded the attorneys and forbade the ‘F’ word in her court. (NO FRAUD)
February 21, 2008 - Associated Press
COLUMBUS, Ohio (AP) - A guilty executive told jurors she told investors "absolutely nothing" about National Century's practices of advancing cash to Memphis, Tenn.-based Medshares, a home-health care provider.
Thursday, December 18, 2008 - National Century fraud case produces 1st acquittal
Prosecutors' case fell short, juror says
By Jodi Andes THE COLUMBUS DISPATCH
The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he
and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. prior to arriving at NCFE and the ONLY executive of NCFE ACQUITTED.
The Pickens Profile You Haven't Read
An exerpt posted in this week's Newsweek : http://www.newsweek.com/id/151727/page/2
Pickens likes to portray his years as a corporate buccaneer during the 1980s as "shareholder activism." When Mesa fell into a cash crisis in the mid '90s after the price of natural gas collapsed, there was no mercy for him on Wall Street. Pickens called in Texas financier Richard Rainwater, and his wife and business partner, Darla Moore, to help raise capital. (Rainwater helped another oilman, George W. Bush, escape his money problems by making him co-owner of the Texas Rangers, a deal that eventually made Bush a multimillionaire.)
Moore, a leveraged-buyout specialist dubbed "the Toughest Babe in the Business" by Fortune, tried to raise $1 billion on Wall Street for Mesa. "I found out there wasn't a bank in the country that would touch the deal if Boone was CEO," Moore told NEWSWEEK. "I tried to soften the message [but] he was really surprised. 'But I get along with all those guys,' is what he said." The Rainwaters worked out a deal for Pickens to retire as CEO, and bought him out, a deal that still rankles the billionaire. Moore whooped with surprise when told by a NEWSWEEK reporter that Pickens had compared her in his book to a "wolverine that pisses on everything it doesn't eat." Moore responds, "I think what people don't know about Boone is that deep down he is actually—I hate to say this—a nice man. And he knows more about energy than anybody in the world."
Just a little insight to Darla Moore;
Darla Moore In 1981, at Chemical Bank in New York, Moore and Conway were focused on a new idea: loaning money to corporations teetering on the brink of bankruptcy,
Soon after, she met and married Rainwater, who made her president of his investment company. They now had $500 million to put wherever they wanted.That's when she pushed T. Boone Pickens out . . . and then to a hard look at Rick Scott.
Scott was Rainwater's good friend. They had bought two hospitals in Texas and shared a vision: a nationwide chain of hospitals using cost controls.
By 1997, Scott's company, Columbia/HCA, was the nation's largest managed care provider.
But Moore said Scott was unwise to ignore subordinates who questioned his practices and foolish to dismiss a federal investigation of how Columbia billed Medicare.
According to the SEC Form :
Med Diversified Inc.
Annual Meeting Of Stockholders
September 9, 2003
JAMES K. HAPP has served as chief executive officer of our subsidiary, Tender Loving Care Health Care Services, Inc., since October 2002.
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency. (1999-2002 by deduction of SEC statement)
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997. In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations (At least1997 until 1999)
Participated in the "DIVESTITURE"...Where did this divestiture 'divest' to?
Look at SEC form 10-K for HCA Inc./TN Filing Date: 4-1-1996.
Pickens likes to portray his years as a corporate buccaneer during the 1980s as "shareholder activism." When Mesa fell into a cash crisis in the mid '90s after the price of natural gas collapsed, there was no mercy for him on Wall Street. Pickens called in Texas financier Richard Rainwater, and his wife and business partner, Darla Moore, to help raise capital. (Rainwater helped another oilman, George W. Bush, escape his money problems by making him co-owner of the Texas Rangers, a deal that eventually made Bush a multimillionaire.)
Moore, a leveraged-buyout specialist dubbed "the Toughest Babe in the Business" by Fortune, tried to raise $1 billion on Wall Street for Mesa. "I found out there wasn't a bank in the country that would touch the deal if Boone was CEO," Moore told NEWSWEEK. "I tried to soften the message [but] he was really surprised. 'But I get along with all those guys,' is what he said." The Rainwaters worked out a deal for Pickens to retire as CEO, and bought him out, a deal that still rankles the billionaire. Moore whooped with surprise when told by a NEWSWEEK reporter that Pickens had compared her in his book to a "wolverine that pisses on everything it doesn't eat." Moore responds, "I think what people don't know about Boone is that deep down he is actually—I hate to say this—a nice man. And he knows more about energy than anybody in the world."
Just a little insight to Darla Moore;
Darla Moore In 1981, at Chemical Bank in New York, Moore and Conway were focused on a new idea: loaning money to corporations teetering on the brink of bankruptcy,
Soon after, she met and married Rainwater, who made her president of his investment company. They now had $500 million to put wherever they wanted.That's when she pushed T. Boone Pickens out . . . and then to a hard look at Rick Scott.
Scott was Rainwater's good friend. They had bought two hospitals in Texas and shared a vision: a nationwide chain of hospitals using cost controls.
By 1997, Scott's company, Columbia/HCA, was the nation's largest managed care provider.
But Moore said Scott was unwise to ignore subordinates who questioned his practices and foolish to dismiss a federal investigation of how Columbia billed Medicare.
According to the SEC Form :
Med Diversified Inc.
Annual Meeting Of Stockholders
September 9, 2003
JAMES K. HAPP has served as chief executive officer of our subsidiary, Tender Loving Care Health Care Services, Inc., since October 2002.
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency. (1999-2002 by deduction of SEC statement)
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997. In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations (At least1997 until 1999)
Participated in the "DIVESTITURE"...Where did this divestiture 'divest' to?
Look at SEC form 10-K for HCA Inc./TN Filing Date: 4-1-1996.
WANTED By the US Marshals....
Mr. James K Happ
I wonder if there were people involved in her disappearance deeper than what was exposed in the court. I guess they couldn’t find her dead in bed like they did Ken Lay, remember him, Mr. Enron!
Good thing she disappeared prior to the one and only executive to be acquitted in the last trial of this six year case, Mr. James K Happ. Prior to the arrival at National Century Financial Enterprises (NCFE), the ex-CFO of Columbia Homecare Group, Inc. was the only acquittal and the last executive to stand trial, December 2008. Mr. James K Happ
National Century figure is featured fugitive
Thursday, January 8, 2009 10:06 PM
BY TIM DOULIN
THE COLUMBUS DISPATCH
WANTED By the US Marshals
http://www.rebeccaparrett.com/
Case Synopsis:
From 1995 to 2002, PARRETT and eight others participated in a large-scale fraud involving investments in accounts receivables owed to healthcare providers. PARRETT and her co-conspirators owned and operated National Century Financial Enterprises (NCFE), which purchased accounts receivable or money owed to healthcare providers by government and private insurance companies. This allowed the healthcare providers cash up-front in lieu of waiting for payments from the insurance companies. NCFE raised the funds to provide to the healthcare providers by selling asset-backed bonds or notes to investors, such as financial institutions, pension funds, and investment firms. These notes were offered through NCFE's subsidiaries, including NPF VI, Inc. and NPF XII, Inc. Investors were promised that these high-quality accounts receivables were actually purchased and owned by NPF VI, Inc. and NPF XII, Inc. and served as collateral. Instead of using investors’ money as promised to purchase accounts receivable from its healthcare provider clients, and for other authorized expenses, PARRETT and others, defrauded investors and enriched themselves. PARRETT provided money to certain healthcare providers far in excess of the value of their accounts receivable, thus providing unsecured loans to less than creditworthy borrowers, many of whom were entities in which PARRETT directly or indirectly maintained an ownership interest. As a result, these healthcare provider clients owed NCFE tens, and even hundreds, of millions of dollars, which created growing shortfalls in NPF VI and NPF XII. PARRETT concealed from investors these unsecured advances and the resulting shortfalls by making false statements to investors, fabricating financial data provided to investors, double counting funds in NPF VI and NPF XII by transferring money between the two programs on different days, and loading false data onto the accounts receivable system. In November 2002, unable to continue this fraud, NCFE filed for bankruptcy protection, while NPF VI and NPF XII owed bondholders approximately $840 million and $2 billion, respectively, amounts far outweighing the value of the accounts receivable and all other collateral held by NCFE or their healthcare provider clients. The total amount of proceeds earned from the fraud is approximately USD 1.772 billion, of which, USD 7.6 million went directly to PARRETT. On 13 March 2008, in the District Court, Southern District of Ohio, PARRETT was found guilty by a jury of conspiracy to commit fraud, six counts of securities fraud, wire fraud, and money laundering conspiracy, but fled before she could be sentenced, resulting in the issuance of a warrant for her arrest on 28 March 2008.
Before ENRON, before the Mortgage Fraud, what about the Healthcare Finance Fraud?
JULY 10, 2007
FOR IMMEDIATE RELEASE
http://www.usdoj.gov/usao/ohsn
SUPERSEDING INDICTMENT CHARGES FORMER EXECUTIVES OF HEALTH CARE FINANCING COMPANY WITH CONSPIRACY, FRAUD, MONEY LAUNDERING
"...superseding indictment charging eight former executives of National Century Financial Enterprises (NCFE) with conspiring to defraud investors by diverting millions of dollars in investors' funds, fabricating data in investor reports, and moving money back and forth between accounts in order to conceal investor fund shortfalls. NCFE, based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States ..." before FBI raided the office in Dublin, Oh.
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
JPMORGAN CHASE and CITI PAID GOVERNMENT SETTLED AGREEMENTS FOR FRAUD in National Century Financial Enterprises, Inc. (NCFE), the “LARGEST ‘PRIVATE’ FINANACIAL FRAUD CASE “in our nation's history
February 3, 2008- THE COLUMBUS DISPATCH
By the numbers
All defendants, except for James K Happ, were initially indicted in May, 2006. United States District Judge Algenon L. Marbley will preside over the case which is scheduled for trial on November 5, 2007. National Century Financial Enterprises (NCFE)
Friday, February 8, 2008- Business First of Columbus - Business First
Poulsen isn't the only National Century executive scheduled for a trial apart from the five now in court. James Happ is scheduled for trial in October because "he wasn't charged in connection with the company's failure until last May."
"All defendants, except for Happ...?"
At trial, the government presented evidence that the defendants engaged in a scheme to deceive investors and rating agencies about the financial health of NCFE and how investor monies would be used between May 1998 and May 2001.
Note: May 1998 James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. and used NCFE to finance his divestiture of Columbia Homecare Group’s losing assets, homecare. . , "All defendants, except for Happ...?"
Mr. Happ, as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997 directed the company through the challenging reimbursement climate, … and participated in the divestiture of all of Columbia/HCA's home care operations.
1998-1999 Who financed this divestiture? NCFE- National Century Financial Enterprises.
Where did James K Happ divest the losing assets of Columbia Homecare Group, Inc? One man owned company, Medshares, Inc. in Memphis, TN. A ‘private’ company financed by a ‘private’ financial institution, NCFE.
In July 1999, Medshares, Inc. filed the LARGEST Bankruptcy case in the history of Western Tennessee's bankruptcy court held all of the Dallas-based Columbia Homecare Group, Inc.’s home care units . All entities filed with the court were financed by NCFE. In this courtroom, documents reveal the uproar from scores of lawyers crying fraud in the bankruptcy court and the BANKRUPTCY JUDGE scolded the attorneys and forbade the ‘F’ word in her court. (NO FRAUD)
February 21, 2008 - Associated Press
COLUMBUS, Ohio (AP) - A guilty executive told jurors she told investors "absolutely nothing" about National Century's practices of advancing cash to Memphis, Tenn.-based Medshares, a home-health care provider.
DECEMBER 2008- National Century fraud case produces 1st acquittal
Thursday, December 18, 2008 3:29 AM Prosecutors' case fell short, juror says
By Jodi Andes THE COLUMBUS DISPATCH
The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he
and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. prior to arriving at NCFE and the ONLY executive of NCFE ACQUITTED.
I wonder if there were people involved in her disappearance deeper than what was exposed in the court. I guess they couldn’t find her dead in bed like they did Ken Lay, remember him, Mr. Enron!
Good thing she disappeared prior to the one and only executive to be acquitted in the last trial of this six year case, Mr. James K Happ. Prior to the arrival at National Century Financial Enterprises (NCFE), the ex-CFO of Columbia Homecare Group, Inc. was the only acquittal and the last executive to stand trial, December 2008. Mr. James K Happ
National Century figure is featured fugitive
Thursday, January 8, 2009 10:06 PM
BY TIM DOULIN
THE COLUMBUS DISPATCH
WANTED By the US Marshals
http://www.rebeccaparrett.com/
Case Synopsis:
From 1995 to 2002, PARRETT and eight others participated in a large-scale fraud involving investments in accounts receivables owed to healthcare providers. PARRETT and her co-conspirators owned and operated National Century Financial Enterprises (NCFE), which purchased accounts receivable or money owed to healthcare providers by government and private insurance companies. This allowed the healthcare providers cash up-front in lieu of waiting for payments from the insurance companies. NCFE raised the funds to provide to the healthcare providers by selling asset-backed bonds or notes to investors, such as financial institutions, pension funds, and investment firms. These notes were offered through NCFE's subsidiaries, including NPF VI, Inc. and NPF XII, Inc. Investors were promised that these high-quality accounts receivables were actually purchased and owned by NPF VI, Inc. and NPF XII, Inc. and served as collateral. Instead of using investors’ money as promised to purchase accounts receivable from its healthcare provider clients, and for other authorized expenses, PARRETT and others, defrauded investors and enriched themselves. PARRETT provided money to certain healthcare providers far in excess of the value of their accounts receivable, thus providing unsecured loans to less than creditworthy borrowers, many of whom were entities in which PARRETT directly or indirectly maintained an ownership interest. As a result, these healthcare provider clients owed NCFE tens, and even hundreds, of millions of dollars, which created growing shortfalls in NPF VI and NPF XII. PARRETT concealed from investors these unsecured advances and the resulting shortfalls by making false statements to investors, fabricating financial data provided to investors, double counting funds in NPF VI and NPF XII by transferring money between the two programs on different days, and loading false data onto the accounts receivable system. In November 2002, unable to continue this fraud, NCFE filed for bankruptcy protection, while NPF VI and NPF XII owed bondholders approximately $840 million and $2 billion, respectively, amounts far outweighing the value of the accounts receivable and all other collateral held by NCFE or their healthcare provider clients. The total amount of proceeds earned from the fraud is approximately USD 1.772 billion, of which, USD 7.6 million went directly to PARRETT. On 13 March 2008, in the District Court, Southern District of Ohio, PARRETT was found guilty by a jury of conspiracy to commit fraud, six counts of securities fraud, wire fraud, and money laundering conspiracy, but fled before she could be sentenced, resulting in the issuance of a warrant for her arrest on 28 March 2008.
Before ENRON, before the Mortgage Fraud, what about the Healthcare Finance Fraud?
JULY 10, 2007
FOR IMMEDIATE RELEASE
http://www.usdoj.gov/usao/ohsn
SUPERSEDING INDICTMENT CHARGES FORMER EXECUTIVES OF HEALTH CARE FINANCING COMPANY WITH CONSPIRACY, FRAUD, MONEY LAUNDERING
"...superseding indictment charging eight former executives of National Century Financial Enterprises (NCFE) with conspiring to defraud investors by diverting millions of dollars in investors' funds, fabricating data in investor reports, and moving money back and forth between accounts in order to conceal investor fund shortfalls. NCFE, based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States ..." before FBI raided the office in Dublin, Oh.
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
JPMORGAN CHASE and CITI PAID GOVERNMENT SETTLED AGREEMENTS FOR FRAUD in National Century Financial Enterprises, Inc. (NCFE), the “LARGEST ‘PRIVATE’ FINANACIAL FRAUD CASE “in our nation's history
February 3, 2008- THE COLUMBUS DISPATCH
By the numbers
All defendants, except for James K Happ, were initially indicted in May, 2006. United States District Judge Algenon L. Marbley will preside over the case which is scheduled for trial on November 5, 2007. National Century Financial Enterprises (NCFE)
Friday, February 8, 2008- Business First of Columbus - Business First
Poulsen isn't the only National Century executive scheduled for a trial apart from the five now in court. James Happ is scheduled for trial in October because "he wasn't charged in connection with the company's failure until last May."
"All defendants, except for Happ...?"
At trial, the government presented evidence that the defendants engaged in a scheme to deceive investors and rating agencies about the financial health of NCFE and how investor monies would be used between May 1998 and May 2001.
Note: May 1998 James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. and used NCFE to finance his divestiture of Columbia Homecare Group’s losing assets, homecare. . , "All defendants, except for Happ...?"
Mr. Happ, as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997 directed the company through the challenging reimbursement climate, … and participated in the divestiture of all of Columbia/HCA's home care operations.
1998-1999 Who financed this divestiture? NCFE- National Century Financial Enterprises.
Where did James K Happ divest the losing assets of Columbia Homecare Group, Inc? One man owned company, Medshares, Inc. in Memphis, TN. A ‘private’ company financed by a ‘private’ financial institution, NCFE.
In July 1999, Medshares, Inc. filed the LARGEST Bankruptcy case in the history of Western Tennessee's bankruptcy court held all of the Dallas-based Columbia Homecare Group, Inc.’s home care units . All entities filed with the court were financed by NCFE. In this courtroom, documents reveal the uproar from scores of lawyers crying fraud in the bankruptcy court and the BANKRUPTCY JUDGE scolded the attorneys and forbade the ‘F’ word in her court. (NO FRAUD)
February 21, 2008 - Associated Press
COLUMBUS, Ohio (AP) - A guilty executive told jurors she told investors "absolutely nothing" about National Century's practices of advancing cash to Memphis, Tenn.-based Medshares, a home-health care provider.
DECEMBER 2008- National Century fraud case produces 1st acquittal
Thursday, December 18, 2008 3:29 AM Prosecutors' case fell short, juror says
By Jodi Andes THE COLUMBUS DISPATCH
The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he
and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
James K Happ was the chief financial officer of the Dallas-based Columbia Homecare Group, Inc. prior to arriving at NCFE and the ONLY executive of NCFE ACQUITTED.
Saturday, January 3, 2009
Columbia Hospital Corporation & National Century Finanacial Enterprises & James K Happ
The one and only executive from NCFE who by the way came from Columbia to NCFE before the FBI raided their offices, was acquitted.
Funny, he was the last person to go on trial.
How convenient!
Undercover: How I Went from Company Man to FBI Spy -- and Exposed the Worst Healthcare Fraud in US History (Hardcover)
Review
“…[an] exciting story of an ordinary man who finds himself in extraordinary circumstances. You could say it’s a rags-to-riches morality tale, with good emerging victorious (up to a point) over bad.” Milwaukee Journal Sentinel
When John Schilling, an unassuming mid-level accountant, went to work for the Columbia Hospital Corporation, he never expected to become the catalyst for the series of “whistleblower” cases that ripped through the healthcare industry in the late 1990s. But when he unwittingly discovered that the company was siphoning billions of dollars away from Medicare and stealing from American taxpayers, he was faced with a choice: Speak up for what he believed to be right, or remain silent. Undercover tells the story of Schilling’s harrowing journey from ordinary citizen to federal informant. The book recounts how Schilling allied himself with the FBI and the Justice Department and–unable to confide in friends or family–journeyed into an undercover world in which he carried a wire and mapped out offices for secret government raids. Suspenseful and provocative, Undercover chronicles Schilling’s nine-year ordeal that eventually led to the resignation of high-level executives and forced Columbia to return $1.7 billion dollars to the federal government. A compelling account of one man’s decision to risk everything for the greater good, this book reveals the personal side of a thankless role that resulted, ultimately, in justice.
See all Editorial Reviews
order Undercover: How I Went from Company Man to FBI Spy — and Exposed the Worst Healthcare Fraud in US History: John W. Schilling form Amazon.
Funny, he was the last person to go on trial.
How convenient!
Undercover: How I Went from Company Man to FBI Spy -- and Exposed the Worst Healthcare Fraud in US History (Hardcover)
Review
“…[an] exciting story of an ordinary man who finds himself in extraordinary circumstances. You could say it’s a rags-to-riches morality tale, with good emerging victorious (up to a point) over bad.” Milwaukee Journal Sentinel
When John Schilling, an unassuming mid-level accountant, went to work for the Columbia Hospital Corporation, he never expected to become the catalyst for the series of “whistleblower” cases that ripped through the healthcare industry in the late 1990s. But when he unwittingly discovered that the company was siphoning billions of dollars away from Medicare and stealing from American taxpayers, he was faced with a choice: Speak up for what he believed to be right, or remain silent. Undercover tells the story of Schilling’s harrowing journey from ordinary citizen to federal informant. The book recounts how Schilling allied himself with the FBI and the Justice Department and–unable to confide in friends or family–journeyed into an undercover world in which he carried a wire and mapped out offices for secret government raids. Suspenseful and provocative, Undercover chronicles Schilling’s nine-year ordeal that eventually led to the resignation of high-level executives and forced Columbia to return $1.7 billion dollars to the federal government. A compelling account of one man’s decision to risk everything for the greater good, this book reveals the personal side of a thankless role that resulted, ultimately, in justice.
See all Editorial Reviews
order Undercover: How I Went from Company Man to FBI Spy — and Exposed the Worst Healthcare Fraud in US History: John W. Schilling form Amazon.
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