National Century
Convicted executive says escape plot is lie
Monday, April 7, 2008 9:10 PM
By Jodi Andes
THE COLUMBUS DISPATCH
A former National Century Financial Enterprises executive, jailed after word of a plot to flee the country surfaced, continued his efforts to be released today.
Attorneys for Randolph H. Speer filed a motion today in federal court in Columbus saying a jailhouse informant lied and that there was no plan by National Century executives to meet in Aruba if convicted.
Five former executives of the defunct Dublin-based health-care financier were convicted on a variety of fraud counts in March.
The motion, filed by attorneys Fred Benton and James Ervin Jr. on behalf of Speer, says the government's allegations of a plot are baseless and asks that Speer and the other executives be freed pending sentencing.
“Mr. Speer vehemently and unequivocally denies knowledge or participation in any such plot,” Speer's attorneys wrote. “There is no credible evidence to support such a blatantly false allegation.”
Last week, federal Judge Algenon L. Marbley ordered that Speer, Donald H. Ayers, Roger S. Faulkenberry and James E. Dierker Jr. be placed behind bars instead of on house arrest.
A bond revocation hearing for the National Century executives is expected to be held April 16. Marbley made the order after Rebecca S. Parrett's disappearance in late March. Parrett was among the five convicted, and her whereabouts remain unknown. Then FBI agents learned from a confidential informant of a plan to escape to Aruba, information that reportedly came from Lance K. Poulsen, former National Century president who's awaiting trial.
Poulsen says he never made such a statement. Poulsen's assertion was made in a letter from his attorney that was attached to the motion.
Today's motion also says the government's informant is Robert Cihy, who is being held in the Ross County Jail on federal charges along with Poulsen.
Cihy was charged with robbing the Farmers Citizen Bank, 5858 N. High St., Worthington, where $1,577 was taken and a gun was shown. He also is a suspect in several other robberies, according to federal court records.
Cihy agreed to a plea bargain and is expected in court Wednesday.
Assistant U.S. Attorney Doug Squires has said the government does not comment about its confidential sources.
Marbley ruled today that the government will not have to disclose the identity of the source.
Tuesday, April 8, 2008
Subprime FRAUD.....The tangled web ...TURNAROUND MANAGEMENT AMIDST CREDIT FACILITY
Oh this is so deep.......tooo deep for most AMERICANS to even comprehend!
But when this is finally unveiled, we will see what type of person this so called
turnaround manager is all about!
What a joke!
ITEM 5. OTHER EVENTS
On January 10, 2001, the Registrant issued a press release, a copy of which is filed as an exhibit to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press Release dated January 9 and issued January 10, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
West Coast Entertainment Corporation
EXHIBIT 99.1
West Coast Entertainment Corporation
9998 Global Road
Philadelphia, Pennsylvania 19115
Phone: (215) 856-2560
FOR IMMEDIATE RELEASE
WEST COAST ENTERTAINMENT CORPORATION APPOINTS
TURNAROUND MANAGEMENT AMIDST CREDIT FACILITY
DEFAULT, RECURRING LOSSES AND LIQUIDATION OF BUSINESS ASSETS
PHILADELPHIA, PA, January 9, 2001 -- West Coast Entertainment Corporation (OTCBB: WCEC), today announced that effective October 25, Gerard J. Leimkuhler became a director of the Company replacing the prior board members. Mr. Leimkuhler brings to the company broad experience in restructuring, divestitures and crisis management, having served as interim chief executive officer of Eagle Capital Corporation, a large mortgage lender in conventional and subprime markets, as Vice Chairman and Interim Chief Operating Officer of Medshares, Inc., and was Vice Chairman of Oxford First Corporation, a Philadelphia based real estate lender.
Also as of November 1, Messrs. Leimkuhler and Jacobs became officers of the Company. Mr. Leimkuhler is Co-Chief Executive Officer and President and Mr. Jacobs is Co-Chief Executive Officer, Secretary, and Treasurer.
The Company also noted that as disclosed in its Form 10-Q for the period ended May 7, 2000 (the "First Quarter 10-Q"), the Company has suffered recurring operating losses and has a working capital and stockholders deficit as of May 7, 2000. Those deficits have significantly increased since that time. The First Quarter 10-Q also stated that the Company was in default under its credit facility and that those factors raised substantial doubt as to the Company's ability to continue as a going concern. The report of the Company's independent auditors is so qualified.
The First Quarter 10-Q stated that on March 3, 2000, the Company entered into an agreement and plan of merger with Video City, Inc. ("Video City"). On August 24, 2000, Video City filed for protection from its creditors under the federal bankruptcy laws, as announced by the Company on August 25, 2000. The merger transaction has not been consummated, nor does the Company expect that it will be consummated.
The First Quarter 10-Q also reported that on January 12, 1999, the Company signed an amendment to its bank Agreement increasing the availability under its credit facility and providing certain credit enhancements. On October 22, 1999, the Company entered into the fourth amendment to its credit facility and on February 13, 2000, the Company signed a forbearance and fifth amendment to its credit facility whereby the bank group extended the effective maturity to August 31, 2000. There has been no further extension of the forbearance agreement since that time.
--------------------------------------------------------------------------------
On or about September 21, 2000, the Company notified the United States Securities and Exchange Commission ("SEC") of the anticipated late filing of the Company's quarterly report on Form 10-Q for the period ended August 6, 2000 (the "Second Quarter 10-Q"). Since the notification, the Company has not filed the Second Quarter 10-Q or any other periodic reports with the SEC. At the present, Management does not expect the Company to be in a position to recommence regular periodic reporting with the SEC and intends to investigate the de-registration of its common stock and suspension of any further periodic reporting obligations.
Since the time of filing of the First Quarter 10-Q, the Company has sold 47 stores in the following transactions:
On October 19, 2000, the Company and its affiliates King Video Enterprises, Inc. and Video King of Browne County, Inc. sold 23 retail video stores in New York and Pennsylvania trading as "Video King" and "West Coast Video" to Video King Group, LLC for $5,100,000.
On November 30, 2000, the Company and its affiliate West Coast Entertainment Corporation of Indiana, Inc. sold 14 retail video stores in Indiana and Kentucky trading as "West Coast Video" to UBT Management LLC for $825,000.
On December 7, 2000, WCEC and its affiliates Video Giant, Inc. sold 10 retail video stores in Arkansas, Louisiana, Oklahoma and Texas trading as "West Coast Video" and "Video Giant" to Kenneth Stone for $2,700,000.
As a result of these sales, the Company has realized proceeds of $8,625,000. These proceeds have been applied to reduce bank debt, pay the costs of the transactions and fund the Company's continued operations.
On January 8, 2000, the Company sold 7 operating retail video stores and the inventory of 2 closed stores to Donald Weiss for $875,000. These proceeds will be applied to reduce bank debt, pay the costs of the transaction and fund the Company's continued operations.
In addition, the Company has entered into an asset purchase agreement with Video One Liquidators Division ("VOL") pursuant to which VOL will purchase and liquidate the inventory of approximately 83 retail store locations. The Company expects to realize proceeds in the approximate amount of $2,490,000 as a result of its agreement with VOL which will be applied to reduce bank debt, pay the costs of the transaction and fund the Company's continued operations.
The Company continues to seek to sell additional stores. There can be no assurance that the Company will be successful in selling additional stores or that the proceeds received from these sales together with the proceeds from previous sales of stores will be sufficient to satisfy the Company's obligations. In the event that they are not sufficient, the Company may be forced to seek protection from its creditors under the federal bankruptcy laws.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, such as statements of the Company's plans, activities, expectations and intentions, that involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to:
the ability to consummate sales of stores and the terms of such sales; the demand for video tapes, both rental and sales, which may be affected by seasonal factors, weather, the level of home viewing; competition from other retailers; the Company's ability to remain in compliance
--------------------------------------------------------------------------------
with or obtain compliance waivers for its bank agreement; the Company's ability to realize adequate proceeds from the sale of stores; the availability of grounds for the de-registration of its common stock and the suspension of SEC periodic reporting obligations; whether the Company will be required to file for protection from its creditors under the federal bankruptcy laws; and other factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2000.
Contact:
Alan M. Jacobs
c/o AMJ Advisors LLC
999 Central Avenue
Suite 208
Woodmere, New York 11588
Telephone: (516) 295-0627
Facsimile: (212) 937-2300
But when this is finally unveiled, we will see what type of person this so called
turnaround manager is all about!
What a joke!
ITEM 5. OTHER EVENTS
On January 10, 2001, the Registrant issued a press release, a copy of which is filed as an exhibit to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press Release dated January 9 and issued January 10, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
West Coast Entertainment Corporation
EXHIBIT 99.1
West Coast Entertainment Corporation
9998 Global Road
Philadelphia, Pennsylvania 19115
Phone: (215) 856-2560
FOR IMMEDIATE RELEASE
WEST COAST ENTERTAINMENT CORPORATION APPOINTS
TURNAROUND MANAGEMENT AMIDST CREDIT FACILITY
DEFAULT, RECURRING LOSSES AND LIQUIDATION OF BUSINESS ASSETS
PHILADELPHIA, PA, January 9, 2001 -- West Coast Entertainment Corporation (OTCBB: WCEC), today announced that effective October 25, Gerard J. Leimkuhler became a director of the Company replacing the prior board members. Mr. Leimkuhler brings to the company broad experience in restructuring, divestitures and crisis management, having served as interim chief executive officer of Eagle Capital Corporation, a large mortgage lender in conventional and subprime markets, as Vice Chairman and Interim Chief Operating Officer of Medshares, Inc., and was Vice Chairman of Oxford First Corporation, a Philadelphia based real estate lender.
Also as of November 1, Messrs. Leimkuhler and Jacobs became officers of the Company. Mr. Leimkuhler is Co-Chief Executive Officer and President and Mr. Jacobs is Co-Chief Executive Officer, Secretary, and Treasurer.
The Company also noted that as disclosed in its Form 10-Q for the period ended May 7, 2000 (the "First Quarter 10-Q"), the Company has suffered recurring operating losses and has a working capital and stockholders deficit as of May 7, 2000. Those deficits have significantly increased since that time. The First Quarter 10-Q also stated that the Company was in default under its credit facility and that those factors raised substantial doubt as to the Company's ability to continue as a going concern. The report of the Company's independent auditors is so qualified.
The First Quarter 10-Q stated that on March 3, 2000, the Company entered into an agreement and plan of merger with Video City, Inc. ("Video City"). On August 24, 2000, Video City filed for protection from its creditors under the federal bankruptcy laws, as announced by the Company on August 25, 2000. The merger transaction has not been consummated, nor does the Company expect that it will be consummated.
The First Quarter 10-Q also reported that on January 12, 1999, the Company signed an amendment to its bank Agreement increasing the availability under its credit facility and providing certain credit enhancements. On October 22, 1999, the Company entered into the fourth amendment to its credit facility and on February 13, 2000, the Company signed a forbearance and fifth amendment to its credit facility whereby the bank group extended the effective maturity to August 31, 2000. There has been no further extension of the forbearance agreement since that time.
--------------------------------------------------------------------------------
On or about September 21, 2000, the Company notified the United States Securities and Exchange Commission ("SEC") of the anticipated late filing of the Company's quarterly report on Form 10-Q for the period ended August 6, 2000 (the "Second Quarter 10-Q"). Since the notification, the Company has not filed the Second Quarter 10-Q or any other periodic reports with the SEC. At the present, Management does not expect the Company to be in a position to recommence regular periodic reporting with the SEC and intends to investigate the de-registration of its common stock and suspension of any further periodic reporting obligations.
Since the time of filing of the First Quarter 10-Q, the Company has sold 47 stores in the following transactions:
On October 19, 2000, the Company and its affiliates King Video Enterprises, Inc. and Video King of Browne County, Inc. sold 23 retail video stores in New York and Pennsylvania trading as "Video King" and "West Coast Video" to Video King Group, LLC for $5,100,000.
On November 30, 2000, the Company and its affiliate West Coast Entertainment Corporation of Indiana, Inc. sold 14 retail video stores in Indiana and Kentucky trading as "West Coast Video" to UBT Management LLC for $825,000.
On December 7, 2000, WCEC and its affiliates Video Giant, Inc. sold 10 retail video stores in Arkansas, Louisiana, Oklahoma and Texas trading as "West Coast Video" and "Video Giant" to Kenneth Stone for $2,700,000.
As a result of these sales, the Company has realized proceeds of $8,625,000. These proceeds have been applied to reduce bank debt, pay the costs of the transactions and fund the Company's continued operations.
On January 8, 2000, the Company sold 7 operating retail video stores and the inventory of 2 closed stores to Donald Weiss for $875,000. These proceeds will be applied to reduce bank debt, pay the costs of the transaction and fund the Company's continued operations.
In addition, the Company has entered into an asset purchase agreement with Video One Liquidators Division ("VOL") pursuant to which VOL will purchase and liquidate the inventory of approximately 83 retail store locations. The Company expects to realize proceeds in the approximate amount of $2,490,000 as a result of its agreement with VOL which will be applied to reduce bank debt, pay the costs of the transaction and fund the Company's continued operations.
The Company continues to seek to sell additional stores. There can be no assurance that the Company will be successful in selling additional stores or that the proceeds received from these sales together with the proceeds from previous sales of stores will be sufficient to satisfy the Company's obligations. In the event that they are not sufficient, the Company may be forced to seek protection from its creditors under the federal bankruptcy laws.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, such as statements of the Company's plans, activities, expectations and intentions, that involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to:
the ability to consummate sales of stores and the terms of such sales; the demand for video tapes, both rental and sales, which may be affected by seasonal factors, weather, the level of home viewing; competition from other retailers; the Company's ability to remain in compliance
--------------------------------------------------------------------------------
with or obtain compliance waivers for its bank agreement; the Company's ability to realize adequate proceeds from the sale of stores; the availability of grounds for the de-registration of its common stock and the suspension of SEC periodic reporting obligations; whether the Company will be required to file for protection from its creditors under the federal bankruptcy laws; and other factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2000.
Contact:
Alan M. Jacobs
c/o AMJ Advisors LLC
999 Central Avenue
Suite 208
Woodmere, New York 11588
Telephone: (516) 295-0627
Facsimile: (212) 937-2300
Monday, April 7, 2008
Federal jury on Wednesday convicted ....
Federal Jury Convicts Nat'l Century Exec
By ANDREW WELSH-HUGGINS
Associated Press Writer
COLUMBUS, Ohio — A federal jury on Wednesday convicted the founder of a failed health care company of trying to bribe a witness in an upcoming $1.9 billion fraud trial.
The jury took one day to deliver its decision against Lance Poulsen, former chief executive officer of National Century Financial Enterprises, described as the nation's largest health care financing firm before its 2002 bankruptcy.
Poulsen was accused of offering a former company executive $500,000 to give misleading testimony during Poulsen's fraud trial scheduled for August.
The executive, Sherry Gibson, told jurors that Karl Demmler, a long time friend to her and Poulsen, told her that Poulsen "wanted to make me whole."
The jury also convicted Demmler, who prosecutors had accused of acting as an intermediary for Poulsen to contact Gibson.
Poulsen said Gibson misunderstood his attempts to help her. He said he was only trying to provide her with a new attorney because he believed she'd been wrongly convicted based on bad legal advice.
Gibson pleaded guilty in 2003 for her role in the National Century fraud case in exchange for cooperating with prosecutors.
The government said the defendants could each face 35 years in prison on all counts of the four-count indictment alleging conspiracy, two counts of witness tampering and obstruction of justice. In court, U.S. District Judge Algenon Marbley referred to as many as 55 years. Actual sentences are usually much lower than the maximum penalties.
Marbley ordered Demmler taken into custody, citing comments he'd made while under investigation that he wanted to kill and dismember a federal bankruptcy judge. Poulsen has been held in a jail in Chillicothe.
Prosecutors were satisfied with the verdict. "The jury indicated that witness tampering would not take place in this courtroom or any other," said federal prosecutor Douglas Squires. "The case was a matter of money for lies."
The verdict could play a role in Poulsen's August fraud trial.
"What we proved is that the witness tampering was related to that scheduled jury trial of Lance Poulsen, and that trial is pending," Squires said.
Poulsen looked down briefly as Marbley read the guilty verdicts, while Demmler stared straight ahead. Poulsen's lawyers said they were taken aback by the verdict and would consider an appeal.
"The evidence pretty strongly demonstrated that he tried to set the record straight and encouraged the witness to tell the truth," said attorney Peter Anderson.
The government wouldn't say whether it would consider a plea deal ahead of the August trial. Poulsen's attorney said that decision would be up to Poulsen.
"Mr. Poulsen has been adamant about his innocence with regard to the allegations in that matter, and will take all the appropriate measures to try to clear his name in that case," said attorney William Terpening.
On a phone call with Demmler recorded by the government, Poulsen said Gibson should explain that her previous statements to prosecutors were based on old facts.
Poulsen said Gibson should say, "But now, there is a new set of charges and it's a new indictment and I'm not familiar with it," Poulsen said on the recording.
In other recordings, Demmler suggests to Poulsen that Gibson could "have amnesia."
Prosecutors portrayed Gibson as a repentant ex-felon who'd served her time after pleading guilty to corporate fraud.
"How can I make you understand that I just want this whole situation behind me so I can get on with my life," Gibson said in a Jan. 29 letter to Demmler quoted by prosecutors.
Poulsen wanted to pay Gibson for one reason, U.S. trial attorney Leo Wise told jurors: to help him win his fraud case.
Defense attorneys characterized Gibson as an angry woman with an ax to grind who turned on Demmler and Poulsen when they were just trying to help her.
They quoted a different part of the same letter in which Gibson suggests that figuring out a way to get back what she lost would be "something to check out."
Poulsen testified he never tried to influence Gibson. "I never asked Sherry to lie," he told jurors during testimony that stretched over several hours. "I never asked her to forget anything."
In his August trial, Poulsen faces multiple counts of wire and securities fraud and money laundering.
The government alleges Poulsen misled investors about unsecured loans his company was providing health care companies such as hospitals and nursing homes. Prosecutors accuse Poulsen and other former executives of the suburban Dublin-based company of moving money to cover up shortfalls and fabricating data. The company filed for bankruptcy following an FBI raid.
At least nine former National Century executives have been convicted of corporate fraud related to the case to date, including Gibson.
The witness tampering case began after Gibson invited Demmler to dinner at a Don Pablo's restaurant in Columbus June 19.
"Business first," Demmler said when they met that night, then proceeded to explain that Poulsen wanted to "make her whole" based on what she'd been through, prosecutors said.
Gibson testified she understood that to mean she was being offered a bribe to change her testimony. She informed the government, turned down their request to investigate the allegation, then changed her mind after Demmler contacted her about another meeting.
Poulsen said the phrase had a different meaning.
"I felt she had been shafted royally," Poulsen told jurors. "I wanted to make her whole."
___
March 26, 2008 - 5:53 p.m. CDT
Copyright 2008, The Associated Press. The information contained in the AP Online news report may not be published, broadcast or redistributed without the prior written authority of The Associated Press.
By ANDREW WELSH-HUGGINS
Associated Press Writer
COLUMBUS, Ohio — A federal jury on Wednesday convicted the founder of a failed health care company of trying to bribe a witness in an upcoming $1.9 billion fraud trial.
The jury took one day to deliver its decision against Lance Poulsen, former chief executive officer of National Century Financial Enterprises, described as the nation's largest health care financing firm before its 2002 bankruptcy.
Poulsen was accused of offering a former company executive $500,000 to give misleading testimony during Poulsen's fraud trial scheduled for August.
The executive, Sherry Gibson, told jurors that Karl Demmler, a long time friend to her and Poulsen, told her that Poulsen "wanted to make me whole."
The jury also convicted Demmler, who prosecutors had accused of acting as an intermediary for Poulsen to contact Gibson.
Poulsen said Gibson misunderstood his attempts to help her. He said he was only trying to provide her with a new attorney because he believed she'd been wrongly convicted based on bad legal advice.
Gibson pleaded guilty in 2003 for her role in the National Century fraud case in exchange for cooperating with prosecutors.
The government said the defendants could each face 35 years in prison on all counts of the four-count indictment alleging conspiracy, two counts of witness tampering and obstruction of justice. In court, U.S. District Judge Algenon Marbley referred to as many as 55 years. Actual sentences are usually much lower than the maximum penalties.
Marbley ordered Demmler taken into custody, citing comments he'd made while under investigation that he wanted to kill and dismember a federal bankruptcy judge. Poulsen has been held in a jail in Chillicothe.
Prosecutors were satisfied with the verdict. "The jury indicated that witness tampering would not take place in this courtroom or any other," said federal prosecutor Douglas Squires. "The case was a matter of money for lies."
The verdict could play a role in Poulsen's August fraud trial.
"What we proved is that the witness tampering was related to that scheduled jury trial of Lance Poulsen, and that trial is pending," Squires said.
Poulsen looked down briefly as Marbley read the guilty verdicts, while Demmler stared straight ahead. Poulsen's lawyers said they were taken aback by the verdict and would consider an appeal.
"The evidence pretty strongly demonstrated that he tried to set the record straight and encouraged the witness to tell the truth," said attorney Peter Anderson.
The government wouldn't say whether it would consider a plea deal ahead of the August trial. Poulsen's attorney said that decision would be up to Poulsen.
"Mr. Poulsen has been adamant about his innocence with regard to the allegations in that matter, and will take all the appropriate measures to try to clear his name in that case," said attorney William Terpening.
On a phone call with Demmler recorded by the government, Poulsen said Gibson should explain that her previous statements to prosecutors were based on old facts.
Poulsen said Gibson should say, "But now, there is a new set of charges and it's a new indictment and I'm not familiar with it," Poulsen said on the recording.
In other recordings, Demmler suggests to Poulsen that Gibson could "have amnesia."
Prosecutors portrayed Gibson as a repentant ex-felon who'd served her time after pleading guilty to corporate fraud.
"How can I make you understand that I just want this whole situation behind me so I can get on with my life," Gibson said in a Jan. 29 letter to Demmler quoted by prosecutors.
Poulsen wanted to pay Gibson for one reason, U.S. trial attorney Leo Wise told jurors: to help him win his fraud case.
Defense attorneys characterized Gibson as an angry woman with an ax to grind who turned on Demmler and Poulsen when they were just trying to help her.
They quoted a different part of the same letter in which Gibson suggests that figuring out a way to get back what she lost would be "something to check out."
Poulsen testified he never tried to influence Gibson. "I never asked Sherry to lie," he told jurors during testimony that stretched over several hours. "I never asked her to forget anything."
In his August trial, Poulsen faces multiple counts of wire and securities fraud and money laundering.
The government alleges Poulsen misled investors about unsecured loans his company was providing health care companies such as hospitals and nursing homes. Prosecutors accuse Poulsen and other former executives of the suburban Dublin-based company of moving money to cover up shortfalls and fabricating data. The company filed for bankruptcy following an FBI raid.
At least nine former National Century executives have been convicted of corporate fraud related to the case to date, including Gibson.
The witness tampering case began after Gibson invited Demmler to dinner at a Don Pablo's restaurant in Columbus June 19.
"Business first," Demmler said when they met that night, then proceeded to explain that Poulsen wanted to "make her whole" based on what she'd been through, prosecutors said.
Gibson testified she understood that to mean she was being offered a bribe to change her testimony. She informed the government, turned down their request to investigate the allegation, then changed her mind after Demmler contacted her about another meeting.
Poulsen said the phrase had a different meaning.
"I felt she had been shafted royally," Poulsen told jurors. "I wanted to make her whole."
___
March 26, 2008 - 5:53 p.m. CDT
Copyright 2008, The Associated Press. The information contained in the AP Online news report may not be published, broadcast or redistributed without the prior written authority of The Associated Press.
Friday, April 4, 2008
JPMorgan Chase will pay about $2 million .....really??? Such a DEAL!
Chase's new tab: $2 million
National Century case settlement its 2nd
Saturday, March 29, 2008 3:14 AM
FROM STAFF REPORTS
JPMorgan Chase will pay about $2 million to settle a case involving its relationship with National Century Financial Enterprises, the Securities and Exchange Commission announced this week.
The SEC accused Bank One and JPMorgan Chase, which now owns Bank One, of "negligent conduct" involving improper transfers among the accounts of National Century subsidiaries for which they served as trustees.
National Century and those subsidiaries collapsed, causing investor losses that the SEC pegged in its statement at $3.6 billion.
The SEC said the banks, at the instruction of National Century, moved money around, making it appear on days when balances were reported that there was enough money in accounts to meet requirements.
The SEC said the transfers were "large, recurring and contrary to the requirements. … Bank One and JPMorgan Chase were negligent and should have known" that National Century was trying to hide shortfalls.
A JPMorgan Chase spokeswoman confirmed the settlement but declined to comment.
This is not the first time JPMorgan Chase has agreed to a multimillion-dollar settlement involving its work with National Century.
Two years ago, it reached a $425 million settlement with National Century creditors, Bloomberg News reported at the time.
National Century was a Dublin-based company that served as a financier for health-care providers. National Century agreed to buy the providers' uncollected debts owed by patients, or accounts receivable, and give the providers money to cover expenses.
To raise that money, National Century set up subsidiaries, or "programs" as the SEC called them in this week's settlement, and sold bonds to investors.
National Century went bankrupt in 2002.
Five former National Century executives were convicted this month of fraud and other charges related to their business dealings that led to the company's collapse. The five are expected to be sentenced this summer.
Four other executives have pleaded guilty.
The company's leader and co-founder, Lance K. Poulsen, and his friend Karl A. Demmler were found guilty this week in a witness-tampering case related to the National Century case.
The two were convicted of trying to sway the testimony of a former company executive who is expected to testify against Poulsen in his upcoming trial. He faces a variety of charges related to National Century's collapse in 2002.
National Century case settlement its 2nd
Saturday, March 29, 2008 3:14 AM
FROM STAFF REPORTS
JPMorgan Chase will pay about $2 million to settle a case involving its relationship with National Century Financial Enterprises, the Securities and Exchange Commission announced this week.
The SEC accused Bank One and JPMorgan Chase, which now owns Bank One, of "negligent conduct" involving improper transfers among the accounts of National Century subsidiaries for which they served as trustees.
National Century and those subsidiaries collapsed, causing investor losses that the SEC pegged in its statement at $3.6 billion.
The SEC said the banks, at the instruction of National Century, moved money around, making it appear on days when balances were reported that there was enough money in accounts to meet requirements.
The SEC said the transfers were "large, recurring and contrary to the requirements. … Bank One and JPMorgan Chase were negligent and should have known" that National Century was trying to hide shortfalls.
A JPMorgan Chase spokeswoman confirmed the settlement but declined to comment.
This is not the first time JPMorgan Chase has agreed to a multimillion-dollar settlement involving its work with National Century.
Two years ago, it reached a $425 million settlement with National Century creditors, Bloomberg News reported at the time.
National Century was a Dublin-based company that served as a financier for health-care providers. National Century agreed to buy the providers' uncollected debts owed by patients, or accounts receivable, and give the providers money to cover expenses.
To raise that money, National Century set up subsidiaries, or "programs" as the SEC called them in this week's settlement, and sold bonds to investors.
National Century went bankrupt in 2002.
Five former National Century executives were convicted this month of fraud and other charges related to their business dealings that led to the company's collapse. The five are expected to be sentenced this summer.
Four other executives have pleaded guilty.
The company's leader and co-founder, Lance K. Poulsen, and his friend Karl A. Demmler were found guilty this week in a witness-tampering case related to the National Century case.
The two were convicted of trying to sway the testimony of a former company executive who is expected to testify against Poulsen in his upcoming trial. He faces a variety of charges related to National Century's collapse in 2002.
Here we go again.....Taylor Pickett.....Pickett also said that Omega is part of Haven's debtor-in-possession financing,
Second Look: Omega Healthcare Investors
Omega Healthcare Says UBS Note on Haven's Bankruptcy Has 'Generated Some Confusion'
April 03, 2008: 02:19 PM EST
NEW YORK (Associated Press) - Omega Healthcare Investors Inc. said Thursday that a UBS Investment Research note on bankruptcy concerns at a key customer has "generated some confusion" and contains statements that were either inaccurate or taken out of context.
UBS analyst Omotayo Okusanya II said Wednesday that debtors-in-possession of Haven Eldercare _ whose facilities make up 9 percent of Omega's portfolio _ have "become more reluctant to fund Haven through its restructuring" and that Haven may not renew a master lease with Omega in June. Haven declared bankruptcy in November.
Okusanya also said in his note that Haven is proposing potential bidders for its properties start with an opening offer of $8 million to $15 million, below Omega's current $61.8 million mortgage on Haven properties.
Omega is a real estate investment trust that provides financing to the long-term care industry. It has two financial portfolios with Haven, which include eight facilities that it leases to Haven and seven Haven locations on which it hold mortgages. The two support each other and are cross-collateralized, Taylor Hickett, Omega's chief executive officer, said in a phone interview.
(P)Hickett said it is unclear how Haven could possibly separate the mortgages from the lease and then reject the lease.
"Although no one can predict whether Haven will ultimately assume or reject Omega's master lease, throughout these proceedings Haven has consistently indicated that the Omega master lease is a valuable asset to the estate that will be assumed as part of the sale process," he said in a release.
The $8 million to $15 million is for unsecured creditors and that amount will allow them to "recover 100 percent of their indebtedness," he said. In bankruptcy proceedings, secured debt is paid before unsecured debt.
Pickett also said that Omega is part of Haven's debtor-in-possession financing, and that he is "not aware of any instance where there has been any reluctance to fund in accordance with the terms and conditions of the loan."
Omega shares fell 21 cents to $16.51 in afternoon trading Thursday.
Omega Healthcare Says UBS Note on Haven's Bankruptcy Has 'Generated Some Confusion'
April 03, 2008: 02:19 PM EST
NEW YORK (Associated Press) - Omega Healthcare Investors Inc. said Thursday that a UBS Investment Research note on bankruptcy concerns at a key customer has "generated some confusion" and contains statements that were either inaccurate or taken out of context.
UBS analyst Omotayo Okusanya II said Wednesday that debtors-in-possession of Haven Eldercare _ whose facilities make up 9 percent of Omega's portfolio _ have "become more reluctant to fund Haven through its restructuring" and that Haven may not renew a master lease with Omega in June. Haven declared bankruptcy in November.
Okusanya also said in his note that Haven is proposing potential bidders for its properties start with an opening offer of $8 million to $15 million, below Omega's current $61.8 million mortgage on Haven properties.
Omega is a real estate investment trust that provides financing to the long-term care industry. It has two financial portfolios with Haven, which include eight facilities that it leases to Haven and seven Haven locations on which it hold mortgages. The two support each other and are cross-collateralized, Taylor Hickett, Omega's chief executive officer, said in a phone interview.
(P)Hickett said it is unclear how Haven could possibly separate the mortgages from the lease and then reject the lease.
"Although no one can predict whether Haven will ultimately assume or reject Omega's master lease, throughout these proceedings Haven has consistently indicated that the Omega master lease is a valuable asset to the estate that will be assumed as part of the sale process," he said in a release.
The $8 million to $15 million is for unsecured creditors and that amount will allow them to "recover 100 percent of their indebtedness," he said. In bankruptcy proceedings, secured debt is paid before unsecured debt.
Pickett also said that Omega is part of Haven's debtor-in-possession financing, and that he is "not aware of any instance where there has been any reluctance to fund in accordance with the terms and conditions of the loan."
Omega shares fell 21 cents to $16.51 in afternoon trading Thursday.
Rearrested executives deny plot to flee U.S....where is the missing executive from all of this?
Rearrested executives deny plot to flee U.S.
1 National Century leader goes AWOL; judge corrals rest
Thursday, April 3, 2008 3:25 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Update
Judge refuses to free defendants
If former executives of National Century Financial Enterprises were convicted, the plan was for them to flee to Aruba, a source told the FBI.Hearing that less than a week after one of the five recently convicted executives disappeared, U.S. District Judge Algenon L. Marbley ordered that the rest be arrested.
All five had been free since their March 13 convictions while they await sentencing in what prosecutors called the largest fraud case in U.S. history involving a privately held company.
Four executives were arrested at their homes yesterday morning: James E. Dierker Jr. in Powell; Roger S. Faulkenberry in Dublin; Donald H. Ayers in Florida; and Randolph H. Speer in Georgia, Deputy U.S. Marshal Brian Babtist said.
An arrest warrant was issued for Rebecca S. Parrett last week after she did not report to court near her home in Carefree, Ariz., prosecutors said.
Marbley had allowed Parrett and Ayers to remain free on house arrest; Dierker, Faulkenberry and Speer were free on less-restrictive personal-recognizance bonds and allowed to work.
On Tuesday, the FBI received information from a "confidential source" that the group had a previous plan to flee to the Caribbean island off the Venezuelan coast, Assistant U.S. Attorney Doug Squires said in a motion filed yesterday in federal court.
The defendants had to turn in their passports before the trial. But Parrett went so far as to "secure personal identity information of another person prior to the jury trial," the motion states.
The source is not named, but it is someone the FBI has found to be credible in the past, Squires wrote in asking that their bonds be revoked.
Defense attorneys were outraged at the allegation.
"This guy has done everything by the book," said Faulkenberry's attorney, Javier Armengau.
He said Faulkenberry calls his office every day and even checked with the court to make sure he could leave his house to drive his daughter to school.
James Ervin Jr., an attorney for Speer, said his client "vehemently maintains his innocence." Ervin said they were shocked by the allegations.
"I don't know anything about it. But I don't believe it," added Leonard Yelsky, attorney for Dierker, a vice president at Victoria's Secret.
The five executives were convicted on a combination of wire-fraud, securities-fraud, money-laundering and conspiracy charges connected to National Century's collapse.
The Dublin-based company provided funding for health-care providers after purchasing their accounts receivables. The company went bankrupt in November 2002, in large part because of unsecured loans it made to the health-care providers, prosecutors showed.
Investors in National Century lost more than $1.9 billion, more than 275 health-care providers filed for bankruptcy in its wake and about 350 local National Century employees lost their jobs.
jandes@dispatch.com
1 National Century leader goes AWOL; judge corrals rest
Thursday, April 3, 2008 3:25 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Update
Judge refuses to free defendants
If former executives of National Century Financial Enterprises were convicted, the plan was for them to flee to Aruba, a source told the FBI.Hearing that less than a week after one of the five recently convicted executives disappeared, U.S. District Judge Algenon L. Marbley ordered that the rest be arrested.
All five had been free since their March 13 convictions while they await sentencing in what prosecutors called the largest fraud case in U.S. history involving a privately held company.
Four executives were arrested at their homes yesterday morning: James E. Dierker Jr. in Powell; Roger S. Faulkenberry in Dublin; Donald H. Ayers in Florida; and Randolph H. Speer in Georgia, Deputy U.S. Marshal Brian Babtist said.
An arrest warrant was issued for Rebecca S. Parrett last week after she did not report to court near her home in Carefree, Ariz., prosecutors said.
Marbley had allowed Parrett and Ayers to remain free on house arrest; Dierker, Faulkenberry and Speer were free on less-restrictive personal-recognizance bonds and allowed to work.
On Tuesday, the FBI received information from a "confidential source" that the group had a previous plan to flee to the Caribbean island off the Venezuelan coast, Assistant U.S. Attorney Doug Squires said in a motion filed yesterday in federal court.
The defendants had to turn in their passports before the trial. But Parrett went so far as to "secure personal identity information of another person prior to the jury trial," the motion states.
The source is not named, but it is someone the FBI has found to be credible in the past, Squires wrote in asking that their bonds be revoked.
Defense attorneys were outraged at the allegation.
"This guy has done everything by the book," said Faulkenberry's attorney, Javier Armengau.
He said Faulkenberry calls his office every day and even checked with the court to make sure he could leave his house to drive his daughter to school.
James Ervin Jr., an attorney for Speer, said his client "vehemently maintains his innocence." Ervin said they were shocked by the allegations.
"I don't know anything about it. But I don't believe it," added Leonard Yelsky, attorney for Dierker, a vice president at Victoria's Secret.
The five executives were convicted on a combination of wire-fraud, securities-fraud, money-laundering and conspiracy charges connected to National Century's collapse.
The Dublin-based company provided funding for health-care providers after purchasing their accounts receivables. The company went bankrupt in November 2002, in large part because of unsecured loans it made to the health-care providers, prosecutors showed.
Investors in National Century lost more than $1.9 billion, more than 275 health-care providers filed for bankruptcy in its wake and about 350 local National Century employees lost their jobs.
jandes@dispatch.com
U.S. Marshals arrest Ayers, Dierker, Faulkenberry and Speer
Arrests in alleged escape plot latest twist in Ohio fraud case
By The Associated Press
Published on Thursday Apr 03, 2008
Some events in the history of the $1.9 billion fraud case against National Century Financial Enterprises, based in the Columbus suburb of Dublin:
1991: Businessman Lance Poulsen founds National Century, a health care financing company that provides financing to medical providers such as nursing homes and small hospitals by buying their short-term debt with money raised from investors.
1995-2002: According to federal prosecutors, the company provides unsecured loans to health care providers and misleads investors about the loans.
November 2002: The company declares bankruptcy after the FBI raids its offices as part of a government investigation.
August 2003: Sherry Gibson, a friend of Poulsen who rose through the company ranks from secretary to executive vice president of compliance, pleads guilty to conspiracy to commit wire and securities fraud.
July 2007: A federal grand jury indicts seven former executives of the company, including Poulsen, with multiple counts of conspiracy, wire and securities fraud and money laundering.
December 2007: A grand jury indicts Poulsen and acquaintance Karl Demmler on charges of trying to bribe Gibson to change her testimony at Poulsen's upcoming fraud trial.
January: U.S. District Court Judge Algenon Marbley grants Poulsen's request to have his own fraud trial in August.
February: Five remaining defendants go on trial before Marbley: Donald Ayers, James Dierker, Roger Faulkenberry, Rebecca Parrett and Randolph Speer.
Prosecutors allege the five engaged in a massive cover-up by lying to investors, fabricating data and loading false information onto a company computer system. Defendants said the government used incorrect definitions in looking at the company's books and took the company's activities out of context by showing jurors only a tiny slice of National Century's operations.
March 13: A jury finds all five defendants guilty. Marbley allows the five to remain free pending sentencing.
March 26: A jury convicts Poulsen and Demmler of conspiracy, witness tampering and obstruction of justice for trying to bribe Gibson.
March 27: Marbley issues an arrest warrant for Parrett after the government says she disappeared.
April 2: U.S. Marshals arrest Ayers, Dierker, Faulkenberry and Speer after the government says it uncovered a plot under which the four would flee to Aruba if convicted.
April 3: Marbley refuses to allow Dierker and Faulkenberry to go free pending a full hearing on the government's plot allegations.
Source: AP Research.
By The Associated Press
Published on Thursday Apr 03, 2008
Some events in the history of the $1.9 billion fraud case against National Century Financial Enterprises, based in the Columbus suburb of Dublin:
1991: Businessman Lance Poulsen founds National Century, a health care financing company that provides financing to medical providers such as nursing homes and small hospitals by buying their short-term debt with money raised from investors.
1995-2002: According to federal prosecutors, the company provides unsecured loans to health care providers and misleads investors about the loans.
November 2002: The company declares bankruptcy after the FBI raids its offices as part of a government investigation.
August 2003: Sherry Gibson, a friend of Poulsen who rose through the company ranks from secretary to executive vice president of compliance, pleads guilty to conspiracy to commit wire and securities fraud.
July 2007: A federal grand jury indicts seven former executives of the company, including Poulsen, with multiple counts of conspiracy, wire and securities fraud and money laundering.
December 2007: A grand jury indicts Poulsen and acquaintance Karl Demmler on charges of trying to bribe Gibson to change her testimony at Poulsen's upcoming fraud trial.
January: U.S. District Court Judge Algenon Marbley grants Poulsen's request to have his own fraud trial in August.
February: Five remaining defendants go on trial before Marbley: Donald Ayers, James Dierker, Roger Faulkenberry, Rebecca Parrett and Randolph Speer.
Prosecutors allege the five engaged in a massive cover-up by lying to investors, fabricating data and loading false information onto a company computer system. Defendants said the government used incorrect definitions in looking at the company's books and took the company's activities out of context by showing jurors only a tiny slice of National Century's operations.
March 13: A jury finds all five defendants guilty. Marbley allows the five to remain free pending sentencing.
March 26: A jury convicts Poulsen and Demmler of conspiracy, witness tampering and obstruction of justice for trying to bribe Gibson.
March 27: Marbley issues an arrest warrant for Parrett after the government says she disappeared.
April 2: U.S. Marshals arrest Ayers, Dierker, Faulkenberry and Speer after the government says it uncovered a plot under which the four would flee to Aruba if convicted.
April 3: Marbley refuses to allow Dierker and Faulkenberry to go free pending a full hearing on the government's plot allegations.
Source: AP Research.
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