But why not all eight? Are their reasons acceptable?
Pick upon this:
Between May 1998 and May 2001, NCFE sold notes to investors with a combined value of $4.4 billion
Ask yourself:
1) What was going on in the Healthcare Arena in 1998? Healthcare Reform was passed late 1997. (Republican Congress)
2) What were the price of stocks for the Healthcare Companies that would be affected by the Reform?
3) What did those Publicly Traded Companies need to do to improve their Stockholder Confidence?
4) How did they succeed with their "Divestitures" and to whom did they diverse to?
Former National Century Financial Enterprises Executives Sentenced for Roles in $3 Billion Securities Fraud Scheme
Last update: 7:01 p.m. EDT Aug. 7, 2008
WASHINGTON, Aug 07, 2008 /PRNewswire-USNewswire via COMTEX/ -- Four former National Century Financial Enterprises (NCFE) executives have been sentenced for their roles in a scheme to deceive investors about the financial health of NCFE, Acting Assistant Attorney General Matthew Friedrich and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced today. NCFE, formerly based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
Donald H. Ayers, 72, of Fort Myers, Fla., NCFE vice chairman, chief operating officer, director and owner of the company, was sentenced on Aug. 6, 2008, to 15 years in prison for conspiracy, securities fraud and money laundering.
Randolph H. Speer, 57, of Peachtree City, Ga., NCFE's chief financial officer, was sentenced on Aug. 6, 2008, to 12 years in prison for conspiracy, securities fraud, wire fraud and money laundering.
Roger S. Faulkenberry, 47, of Dublin, a senior executive responsible for raising money from investors, was sentenced on Aug. 7, 2008, to ten years in prison for conspiracy, securities fraud, wire fraud and money laundering.
James E. Dierker, 40, of Powell, Ohio, associate director of marketing and vice president of client development, was sentenced on Aug. 7, 2008, to five years in prison for conspiracy and money laundering.
Rebecca S. Parrett, 59, of Carefree, Ariz., an NCFE vice chairman, secretary, treasurer, director and owner of the company, became a fugitive following the March 2008 jury verdict. She faces a maximum penalty of 75 years in prison and $2.5 million in fines.
U.S. District Court Judge Algenon Marbley also ordered the defendants to forfeit $1.7 billion of property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion.
"In a scheme which lasted for years, these defendants purposely misled the investing public about National Century, its financial health, and the way in which it did business," said Acting Assistant Attorney General Matthew Friedrich. "When the facade collapsed and National Century filed for bankruptcy, investors were left holding the bag for billions of dollars in losses. The sentences handed down in this case justly reflect the gravity of the offenses."
"These sentences mark the end of a nearly six-year march to justice for the architects of the financial house of cards known as National Century," said Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio. "These crimes touched hundreds of thousands of Americans if they participated in a pension that invested in National Century, or had money in any of the financial institutions who bought securities from National Century."
"Unfortunately today's sentencing does not immediately restore investor confidence or offer complete financial restitution for the victims of one of the largest corporate fraud investigations," said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division. "The FBI and our law enforcement and regulatory partners will do whatever it takes so that no company, in small town America or major metropolitan cities alike, misrepresents their financial health and defrauds investors."
"The IRS, along with our law enforcement partners, will vigorously pursue corporate officers who victimize their investors and violate the public trust," said Internal Revenue Service (IRS) Chief of the Criminal Investigation Division Eileen Mayer. "Today's sentence demonstrates the government's determination to restore and ensure that trust."
Evidence was presented at trial in February 2008 that the defendants engaged in a scheme to deceive investors and rating agencies about the financial health of NCFE and how investor monies would be used. Between May 1998 and May 2001, NCFE sold notes to investors with a combined value of $4.4 billion, which evidence showed were actually worth approximately six cents on the dollar at the time of NCFE's bankruptcy in November 2002.
Court documents show that NCFE presented a business model to investors and rating agencies that called for NCFE to purchase high-quality accounts receivable from healthcare providers using money NCFE obtained through the sale of asset-backed notes to institutional investors. Evidence at trial showed that the defendants knew that the business model NCFE presented to the investing public differed drastically from the way NCFE did business within its own walls and that NCFE was making up the information contained in monthly investor reports to make it appear as though NCFE was in compliance with its own governing documents.
Ayers, Speer, Faulkenberry, Dierker and Parrett were five of eight individuals indicted in the case in July 2007. Lance K. Poulsen was severed from the other defendants following his arrest on obstruction of justice charges on Oct. 18, 2007. He will be sentenced on the obstruction of justice charges on Aug. 8, 2008. Poulsen's trial on conspiracy, securities fraud, wire fraud, mail fraud and money laundering charges is scheduled to begin Oct. 1, 2008. James K. Happ, a certified public accountant and former executive vice president for servicer operations will face charges of conspiracy and wire fraud at trial scheduled to begin Dec. 1, 2008. Jon A. Beacham, who was responsible for raising money from investors through the sale of notes, pleaded guilty to conspiracy and securities fraud on July 13, 2007, and awaits sentencing.
The case was prosecuted by Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Senior Litigation Counsel Kathleen McGovern and Trial Attorney Wes R. Porter of the Criminal Division's Fraud Section, with assistance from Fraud Section Paralegal Specialists Crystal Curry and Sarah Marberg. The investigation was conducted by FBI agents Matt Daly, Ingrid Schmidt and Tad Morris; IRS Inspectors Greg Ruwe and Mark Bailey; U.S. Postal Inspector Dave Mooney; and U.S. Immigration and Customs Enforcement agent Celeste Koszut.
SOURCE U.S. Department of Justice
http://www.USDOJ.gov
Copyright (C) 2008 PR Newswire. All rights reserved
Friday, August 8, 2008
Thursday, August 7, 2008
Prosecutors have compared the Dublin-based company's collapse to Enron and Worldcom
National Century Founder, Executive Sentenced
Prosecutors have compared the Dublin-based company's collapse to Enron and Worldcom.
By WTVN Newsroom
Wednesday, August 6, 2008
A federal judge on Wednesday sentenced two former executives of Dublin-based National Century Financial Enterprises for their roles in the massive fraud case.
Founder Donald Ayers, 72, who must also repay billions of dollars to investors and co-defendents, faced up to 55 years for his role in the $1.9 billion fraud that brought down the health care financing firm.
U.S. District Judge Algenon Marbley sentenced Ayers to 15 years.A jury convicted Ayers of conspiracy to commit securities or wire fraud, six counts of securities fraud and conspiracy to commit money laundering in March.
Marbley said the 12-year prison term for 52-year-old Randolph Speer was enough to punish Speer and deter others from committing similar crimes. Marbley also ruled that Speer must repay billions of dollars to investors along with his co-defendants.
They are the first of six defendants to be sentenced.
Roger Faulkenberry and James Dierker Jr. are scheduled to appear before the judge on Thursday.
Former CEO Lance Poulsen and his friend, Karl Demmler, are set for sentencing on Friday. They were convicted of obstructing justice in trying to get a witness to fake amnesia.
The Associated Press contributed to this story
Copyright © 2003-2008 Clear Channel. All rights reserved.
Prosecutors have compared the Dublin-based company's collapse to Enron and Worldcom.
By WTVN Newsroom
Wednesday, August 6, 2008
A federal judge on Wednesday sentenced two former executives of Dublin-based National Century Financial Enterprises for their roles in the massive fraud case.
Founder Donald Ayers, 72, who must also repay billions of dollars to investors and co-defendents, faced up to 55 years for his role in the $1.9 billion fraud that brought down the health care financing firm.
U.S. District Judge Algenon Marbley sentenced Ayers to 15 years.A jury convicted Ayers of conspiracy to commit securities or wire fraud, six counts of securities fraud and conspiracy to commit money laundering in March.
Marbley said the 12-year prison term for 52-year-old Randolph Speer was enough to punish Speer and deter others from committing similar crimes. Marbley also ruled that Speer must repay billions of dollars to investors along with his co-defendants.
They are the first of six defendants to be sentenced.
Roger Faulkenberry and James Dierker Jr. are scheduled to appear before the judge on Thursday.
Former CEO Lance Poulsen and his friend, Karl Demmler, are set for sentencing on Friday. They were convicted of obstructing justice in trying to get a witness to fake amnesia.
The Associated Press contributed to this story
Copyright © 2003-2008 Clear Channel. All rights reserved.
National Century Executives Sentenced to Prison Time....(but only some)
Not all of them tho......some have yet to even go to trial.....and we need
to ask ourselves WHY?
National Century Executives Sentenced to Prison Time (Update3)
By Sophia Pearson and Denise Trowbridge
Aug. 6 (Bloomberg) -- National Century Financial Enterprises Inc. co-founder Donald Ayers and former executive Randolph Speer were sentenced to 15 years and 12 years in prison, respectively, for their roles in bilking investors out of $2.9 billion before the health-care financing company's bankruptcy in 2002.
U.S. District Judge Algenon Marbley in Columbus, Ohio, imposed the sentence today, rejecting defense lawyers' arguments that the men led exemplary lives and had family responsibilities. Ayers, 72, Speer, 57, and three other executives were convicted in March of securities fraud, conspiracy and money laundering.
``This company was a poster child for a sophisticated scheme,'' the judge said. ``It was a high-level shell game. Everyone knew, but they were hedging their bets that they wouldn't be discovered. But they were.''
National Century, based in Dublin, Ohio, loaned money to struggling health-care providers, including hospitals and clinics, and claimed to secure the loans with incoming payments that backed bonds sold to investors. Many receivables were worthless IOUs, forcing National Century to use new money to pay old investors.
Ayers and the other executives, Roger S. Faulkenberry, Speer, James Dierker and Rebecca Parrett, lied to auditors and in monthly reports to bondholders, prosecutors said. The company advanced funds to providers owned by former Chief Executive Officer Lance Poulsen, Ayers and Parrett, letting them pay debts, settle lawsuits and buy other companies. National Century's collapse led to bankruptcies by 275 providers.
Concurrent Sentences
Ayers was sentenced to 15 years for money laundering and five years for securities fraud, with the sentences to run concurrently. Marbley ordered Ayers, who faced up to 55 years in prison, and the other executives to pay $2.3 billion in restitution.
Speer received concurrent sentences of 12 years for money laundering and five years for securities and wire fraud. He faced a maximum of 125 years in prison. Faulkenberry and Dierker are to be sentenced tomorrow.
Ayers must liquidate his Merrill Lynch money-market and retirement accounts and sell all his vehicles but one within 30 days. If employed, the men will have to pay as much as 50 percent of their earnings toward restitution, Marbley said.
Speer, Ayers and Faulkenberry have been behind bars since April after prosecutors uncovered a plot to flee to Aruba. Dierker was released on house arrest.
Parrett a Fugitive
Parrett, who was once married to Ayers, was declared a fugitive on March 27 after failing to report for an electronic ankle bracelet to monitor her movements. She is still missing.
Defense lawyer Brian Dickerson urged Marbley to consider Ayers's age and exemplary life. The former executive, who has been divorced twice, is a stay-at-home father to two adopted children from his current wife and recently suffered a stroke. His medical needs should be considered, Dickerson said.
``There should be another category for someone who is 72 years old who doesn't have a blemish on his record,'' Dickerson said.
Marbley rejected those claims along with Ayers's denial of the fraud.
``The court cannot find any evidence to believe that Mr. Ayers did not know what was going on,'' Marbley said. ``I believe he along with Becky Parrett and Lance Poulsen were the architects of this scheme and perpetuated it. Evidence of the defendant's guilt in this case is overwhelming.''
Wife's Testimony
Speer's wife, Kathy, testified that her husband of 20 years was ``soft-spoken and down to earth.''
``He is the center of my family,'' she said. ``His absence from home has been absolutely devastating to our family.''
Speer, the company's chief financial officer from 1999 to 2002, should have been sentenced to seven to 10 years, attorney Fred Benton argued. He asked that Speer be placed at a low- security facility in the Talladega, Alabama, area.
Ayers requested placement at the Eglin Federal Prison Camp in Eglin, Florida. That facility was named one of the best places to go to prison by Forbes Magazine in 2006.
National Century's fraud claimed among its victims Pacific Investment Management Co., the world's largest bond fund, and the state of Arizona.
JPMorgan Chase & Co., the third-largest U.S. bank, agreed to pay $425 million in 2006 to settle with Arizona noteholders who claimed it and other banks underwrote or were trustees of the notes used to defraud investors.
Prosecutors previously secured four guilty pleas from executives at National Century, including Sherry Gibson, a former vice president of compliance. Gibson, who spent almost three years in prison, was the main government witness at the trial.
Poulsen will face fraud charges at a separate trial later this year. He was convicted in March of trying to bribe a witness to change her testimony against him.
The case is U.S. v. Poulsen, 06-129, U.S. District Court, Southern District of Ohio (Columbus).
To contact the reporters on this story: Sophia Pearson in Wilmington, Delaware, at spearson3@bloomberg.net; Denise Trowbridge in Columbus, Ohio, t .
to ask ourselves WHY?
National Century Executives Sentenced to Prison Time (Update3)
By Sophia Pearson and Denise Trowbridge
Aug. 6 (Bloomberg) -- National Century Financial Enterprises Inc. co-founder Donald Ayers and former executive Randolph Speer were sentenced to 15 years and 12 years in prison, respectively, for their roles in bilking investors out of $2.9 billion before the health-care financing company's bankruptcy in 2002.
U.S. District Judge Algenon Marbley in Columbus, Ohio, imposed the sentence today, rejecting defense lawyers' arguments that the men led exemplary lives and had family responsibilities. Ayers, 72, Speer, 57, and three other executives were convicted in March of securities fraud, conspiracy and money laundering.
``This company was a poster child for a sophisticated scheme,'' the judge said. ``It was a high-level shell game. Everyone knew, but they were hedging their bets that they wouldn't be discovered. But they were.''
National Century, based in Dublin, Ohio, loaned money to struggling health-care providers, including hospitals and clinics, and claimed to secure the loans with incoming payments that backed bonds sold to investors. Many receivables were worthless IOUs, forcing National Century to use new money to pay old investors.
Ayers and the other executives, Roger S. Faulkenberry, Speer, James Dierker and Rebecca Parrett, lied to auditors and in monthly reports to bondholders, prosecutors said. The company advanced funds to providers owned by former Chief Executive Officer Lance Poulsen, Ayers and Parrett, letting them pay debts, settle lawsuits and buy other companies. National Century's collapse led to bankruptcies by 275 providers.
Concurrent Sentences
Ayers was sentenced to 15 years for money laundering and five years for securities fraud, with the sentences to run concurrently. Marbley ordered Ayers, who faced up to 55 years in prison, and the other executives to pay $2.3 billion in restitution.
Speer received concurrent sentences of 12 years for money laundering and five years for securities and wire fraud. He faced a maximum of 125 years in prison. Faulkenberry and Dierker are to be sentenced tomorrow.
Ayers must liquidate his Merrill Lynch money-market and retirement accounts and sell all his vehicles but one within 30 days. If employed, the men will have to pay as much as 50 percent of their earnings toward restitution, Marbley said.
Speer, Ayers and Faulkenberry have been behind bars since April after prosecutors uncovered a plot to flee to Aruba. Dierker was released on house arrest.
Parrett a Fugitive
Parrett, who was once married to Ayers, was declared a fugitive on March 27 after failing to report for an electronic ankle bracelet to monitor her movements. She is still missing.
Defense lawyer Brian Dickerson urged Marbley to consider Ayers's age and exemplary life. The former executive, who has been divorced twice, is a stay-at-home father to two adopted children from his current wife and recently suffered a stroke. His medical needs should be considered, Dickerson said.
``There should be another category for someone who is 72 years old who doesn't have a blemish on his record,'' Dickerson said.
Marbley rejected those claims along with Ayers's denial of the fraud.
``The court cannot find any evidence to believe that Mr. Ayers did not know what was going on,'' Marbley said. ``I believe he along with Becky Parrett and Lance Poulsen were the architects of this scheme and perpetuated it. Evidence of the defendant's guilt in this case is overwhelming.''
Wife's Testimony
Speer's wife, Kathy, testified that her husband of 20 years was ``soft-spoken and down to earth.''
``He is the center of my family,'' she said. ``His absence from home has been absolutely devastating to our family.''
Speer, the company's chief financial officer from 1999 to 2002, should have been sentenced to seven to 10 years, attorney Fred Benton argued. He asked that Speer be placed at a low- security facility in the Talladega, Alabama, area.
Ayers requested placement at the Eglin Federal Prison Camp in Eglin, Florida. That facility was named one of the best places to go to prison by Forbes Magazine in 2006.
National Century's fraud claimed among its victims Pacific Investment Management Co., the world's largest bond fund, and the state of Arizona.
JPMorgan Chase & Co., the third-largest U.S. bank, agreed to pay $425 million in 2006 to settle with Arizona noteholders who claimed it and other banks underwrote or were trustees of the notes used to defraud investors.
Prosecutors previously secured four guilty pleas from executives at National Century, including Sherry Gibson, a former vice president of compliance. Gibson, who spent almost three years in prison, was the main government witness at the trial.
Poulsen will face fraud charges at a separate trial later this year. He was convicted in March of trying to bribe a witness to change her testimony against him.
The case is U.S. v. Poulsen, 06-129, U.S. District Court, Southern District of Ohio (Columbus).
To contact the reporters on this story: Sophia Pearson in Wilmington, Delaware, at spearson3@bloomberg.net; Denise Trowbridge in Columbus, Ohio, t .
NCFE.....Why the delay for this Executive?
James Happ served as
executive vice president of National Century Financial Enterprises ("NCFE"),
a health care financing company and the primary lender of Med Diversified.
In his three years in this role, he restructured the Servicer department to improve
operational performance and accelerated the utilization of technology to
increase operational efficiency.
executive vice president of National Century Financial Enterprises ("NCFE"),
a health care financing company and the primary lender of Med Diversified.
In his three years in this role, he restructured the Servicer department to improve
operational performance and accelerated the utilization of technology to
increase operational efficiency.
Judge sets $2 billion-plus in restitution .....NOt expecting any repayment
National Century
Two execs get 15, 12 years in prison for huge fraud
Judge sets $2 billion-plus in restitution down to penny
Wednesday, August 6, 2008 12:09 PM
Updated: Wednesday, August 6, 2008 10:30 PM
By Jodi Andes
THE COLUMBUS DISPATCH
It's unlikely that the executives involved in the nation's largest case of private fraud will ever be able to come up with the more than $2.3 billion they've been ordered to repay.
But federal Judge Algenon L. Marbley wanted to make sure they were aware of the exact amount of the bill -- down to the penny -- while they sit in prison.
Yesterday, he ordered Donald H. Ayers and Randolph H. Speer, former executives for National Century Financial Enterprises, to repay investors $2,384,147,105.09.
"Thousands suffered considerable financial losses,'' the judge said. "Ayers, on the other hand, amassed a significant financial fortune."
Ayers, a founder of National Century, could spend the rest of his life behind bars.
Marbley ordered the 72-year-old Ayers, the chief operations officer for National Century, to serve 15 years in federal prison.
"An eight-year sentence for Mr. Ayers, unless he lives longer than any of his family, would be a death sentence," his attorney Brian Dickerson said, arguing for a lighter term.
Speer, 57 and the former chief financial officer of National Century, received a 12-year sentence.
Both men got much less time than they faced: Ayers could have received 55 years in prison, and Speer 125 years.
National Century was a Dublin-based business that touted itself as the nation's largest private handler of medical accounts receivable. For a fee, the company collected the money owed on bills to doctors.
The company used investors' funds to give health-care providers the money upfront.
But when the company went bankrupt in November 2002, investors lost $2.8 billion, and more than 275 health-care providers went out of business.
Ayers and Speer were convicted in March of such charges as securities fraud and money laundering.
They are the first of five defendants scheduled for sentencing this week in the National Century case.
Prosecutors are expected to file paperwork soon, detailing exactly what can be seized to attempt to make repayments on the amount owed to investors. Houses, cars and retirement and savings accounts of those convicted could be considered.
In yesterday's hearing, attorneys for Ayers and Speers argued for leniency, saying the men didn't know all that was going on at National Century.
But Assistant U.S. Attorney Doug Squires said that Speer was the company's chief financial officer.
"He was in charge of money in and money out,'' Squires said. "Just to have him say now, 'I was just following orders' or that 'I'm a rubber stamp' is disingenuous."
Marbley agreed, calling Ayers one of the architects of the fraud, and saying Speer was a "battlefield commander" or "enabler" who authorized 400 transfers in unsecured loans to health-care providers.
Defense attorneys say they will appeal the case, using recent Securities and Exchange Commission rulings that show banks and auditors knew about lies to investors and unauthorized money transfers.
Roger S. Faulkenberry and James E. Dierker Jr., also convicted on fraud-related charges in the National Century case, are expected to be sentenced today. On Friday, former CEO Lance K. Poulsen, convicted of obstructing justice, is to be sentenced. He still must stand trial on fraud charges in October.
Karl A. Demmler, convicted of obstructing justice, is to be sentenced at a later date.
A seventh co-defendant, Rebecca S. Parrett, also a former executive of the company, disappeared after she was convicted and remains at large.
Two execs get 15, 12 years in prison for huge fraud
Judge sets $2 billion-plus in restitution down to penny
Wednesday, August 6, 2008 12:09 PM
Updated: Wednesday, August 6, 2008 10:30 PM
By Jodi Andes
THE COLUMBUS DISPATCH
It's unlikely that the executives involved in the nation's largest case of private fraud will ever be able to come up with the more than $2.3 billion they've been ordered to repay.
But federal Judge Algenon L. Marbley wanted to make sure they were aware of the exact amount of the bill -- down to the penny -- while they sit in prison.
Yesterday, he ordered Donald H. Ayers and Randolph H. Speer, former executives for National Century Financial Enterprises, to repay investors $2,384,147,105.09.
"Thousands suffered considerable financial losses,'' the judge said. "Ayers, on the other hand, amassed a significant financial fortune."
Ayers, a founder of National Century, could spend the rest of his life behind bars.
Marbley ordered the 72-year-old Ayers, the chief operations officer for National Century, to serve 15 years in federal prison.
"An eight-year sentence for Mr. Ayers, unless he lives longer than any of his family, would be a death sentence," his attorney Brian Dickerson said, arguing for a lighter term.
Speer, 57 and the former chief financial officer of National Century, received a 12-year sentence.
Both men got much less time than they faced: Ayers could have received 55 years in prison, and Speer 125 years.
National Century was a Dublin-based business that touted itself as the nation's largest private handler of medical accounts receivable. For a fee, the company collected the money owed on bills to doctors.
The company used investors' funds to give health-care providers the money upfront.
But when the company went bankrupt in November 2002, investors lost $2.8 billion, and more than 275 health-care providers went out of business.
Ayers and Speer were convicted in March of such charges as securities fraud and money laundering.
They are the first of five defendants scheduled for sentencing this week in the National Century case.
Prosecutors are expected to file paperwork soon, detailing exactly what can be seized to attempt to make repayments on the amount owed to investors. Houses, cars and retirement and savings accounts of those convicted could be considered.
In yesterday's hearing, attorneys for Ayers and Speers argued for leniency, saying the men didn't know all that was going on at National Century.
But Assistant U.S. Attorney Doug Squires said that Speer was the company's chief financial officer.
"He was in charge of money in and money out,'' Squires said. "Just to have him say now, 'I was just following orders' or that 'I'm a rubber stamp' is disingenuous."
Marbley agreed, calling Ayers one of the architects of the fraud, and saying Speer was a "battlefield commander" or "enabler" who authorized 400 transfers in unsecured loans to health-care providers.
Defense attorneys say they will appeal the case, using recent Securities and Exchange Commission rulings that show banks and auditors knew about lies to investors and unauthorized money transfers.
Roger S. Faulkenberry and James E. Dierker Jr., also convicted on fraud-related charges in the National Century case, are expected to be sentenced today. On Friday, former CEO Lance K. Poulsen, convicted of obstructing justice, is to be sentenced. He still must stand trial on fraud charges in October.
Karl A. Demmler, convicted of obstructing justice, is to be sentenced at a later date.
A seventh co-defendant, Rebecca S. Parrett, also a former executive of the company, disappeared after she was convicted and remains at large.
Finance Executive Ordered to Prison....
"had nothing to do with subprime mortgages"
Maybe true, but I am not sure this is not RELATED to the Fraud in the Financial Serives in America!
Aug 6 2008 6:26PM EDT
Finance Executive Ordered to Prison
A federal judge today ordered a finance executive convicted of fraud to spend 15 years in prison. And, no, he had nothing to do with subprime mortgages.
Donald H. Ayers, 72, was a founder, vice chairman, and chief operating officer of National Century Financial Enterprises, which bought accounts receivable from health-care providers.
He was also an architect of the fraud that brought down the company in 2002, costing investors nearly $2 billion and leading to the collapse of more than 275 health-care provider clients, prosecutors say.
A jury convicted Ayers and five other National Century executives in March. Ayers was charged with six counts of securities fraud, as well as several counts of conspiracy. He is the first to be sentenced.
District Judge Algenon L. Marbley in Columbus, Ohio, is scheduled to sentence another National Century executive, former chief financial officer Randolph H. Speer, this afternoon.
Marbley will sentence Roger S. Faulkenberry, whom authorities describe as a senior executive responsible for raising money from investors, and James E. Dierker Jr., associate director of marketing and vice president of client development, on Thursday.
Former C.E.O. Lance K. Poulsen and his friend Karl A. Demmler are scheduled to be sentenced on Friday. They were convicted of obstructing justice for having tried to persuade a government witness to fake amnesia.
The sentencing was first reported on the website of the Columbus Dispatch.
by Mark Stein
Maybe true, but I am not sure this is not RELATED to the Fraud in the Financial Serives in America!
Aug 6 2008 6:26PM EDT
Finance Executive Ordered to Prison
A federal judge today ordered a finance executive convicted of fraud to spend 15 years in prison. And, no, he had nothing to do with subprime mortgages.
Donald H. Ayers, 72, was a founder, vice chairman, and chief operating officer of National Century Financial Enterprises, which bought accounts receivable from health-care providers.
He was also an architect of the fraud that brought down the company in 2002, costing investors nearly $2 billion and leading to the collapse of more than 275 health-care provider clients, prosecutors say.
A jury convicted Ayers and five other National Century executives in March. Ayers was charged with six counts of securities fraud, as well as several counts of conspiracy. He is the first to be sentenced.
District Judge Algenon L. Marbley in Columbus, Ohio, is scheduled to sentence another National Century executive, former chief financial officer Randolph H. Speer, this afternoon.
Marbley will sentence Roger S. Faulkenberry, whom authorities describe as a senior executive responsible for raising money from investors, and James E. Dierker Jr., associate director of marketing and vice president of client development, on Thursday.
Former C.E.O. Lance K. Poulsen and his friend Karl A. Demmler are scheduled to be sentenced on Friday. They were convicted of obstructing justice for having tried to persuade a government witness to fake amnesia.
The sentencing was first reported on the website of the Columbus Dispatch.
by Mark Stein
pushes back trial of former company executive James Happ to Dec. 1......
Why the PUSHBACK for James Happ?
That is the BILLIONS,UPON BILLIONS of Dollar Question!!
WAKE UP!!!
Events in $1.9 billion Ohio corporate fraud case
By The Associated Press
Published on Wednesday Aug 06, 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.
April 4: Speer attorney files letter from Poulsen lawyer Pete Anderson adamantly denying Poulsen is source of plot allegation.
April 14: Marbley denies request by Ayers and other defendants to wear civilian clothes at hearing on plot allegations.
April 17: Marbley orders Dierker released on bond pending sentencing but says the three other defendants, whom he dubbed a "leadership cabal," must stay behind bars.
July 11: Marbley agrees to delay Poulsen's corporate fraud trial to Oct. 1. Marbley also pushes back trial of former company executive James Happ to Dec. 1.___
That is the BILLIONS,UPON BILLIONS of Dollar Question!!
WAKE UP!!!
Events in $1.9 billion Ohio corporate fraud case
By The Associated Press
Published on Wednesday Aug 06, 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.
April 4: Speer attorney files letter from Poulsen lawyer Pete Anderson adamantly denying Poulsen is source of plot allegation.
April 14: Marbley denies request by Ayers and other defendants to wear civilian clothes at hearing on plot allegations.
April 17: Marbley orders Dierker released on bond pending sentencing but says the three other defendants, whom he dubbed a "leadership cabal," must stay behind bars.
July 11: Marbley agrees to delay Poulsen's corporate fraud trial to Oct. 1. Marbley also pushes back trial of former company executive James Happ to Dec. 1.___
Subscribe to:
Posts (Atom)
