What a joke! One would thinkk fromt hsi headline that this case is settled!
Have you forgotten about Poulsen & Happ for the FRAUD? The MOST IMPORTANT part of this CASE has yet to be TRIED and the MEDIA is "PORTRAYING" an end!!
SHAME ON THE MEDIA!!
This is from the website:
http://www.accountability-central.com
Former National Century Financial Enterprises Executives Sentenced for Roles in $3 Billion Securities Fraud Scheme
BY: DEPARTMENT OF JUSTICE
WASHINGTON – 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., an 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.
Monday, August 11, 2008
Saturday, August 9, 2008
Federal Judge Algenon L. Marbley, however, sentenced Poulsen, 65, to 10 years in a federal prison.....but what is next?
NATIONAL CENTURY CASE
Apologetic executive gets 10 years
Saturday, August 9, 2008 3:10 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Poulsen
Demmler
Minutes before Lance K. Poulsen was sentenced for trying to bribe the star witness in the nation's largest private-fraud case, he apologized.
Yesterday, nearly all objections made by Poulsen's attorneys to keep their client from a long prison term were shot down by the judge in three hours of debate.
Poulsen was then given the option to speak before he was sentenced for witness tampering and obstruction of justice.
Shackled at the hands and feet, Poulsen offered the first apology for the 2002 demise of Dublin-based National Century Financial Enterprises, where 350 employees lost their jobs and investors lost more than $2 billion.
"I want to express my remorse. I have had many months of imprisonment to consider my conduct," Poulsen said. "But there is no question that NCFE's failure hurt many families.
"These were good people employed at NCFE and now have no future. There is no question that NCFE was my company. … I was ultimately responsible for my company's welfare and their welfare."
The statements followed a tearful plea from Poulsen's wife, Barbara, to the judge.
"He is sincere and unselfish in his motives. I truly believe he is a really good man," she said, crying. "I just ask for your leniency in the sentencing."
The most common sentence for such crimes is less than two years in prison, Poulsen's attorney Pete Anderson noted.
Federal Judge Algenon L. Marbley, however, sentenced Poulsen, 65, to 10 years in a federal prison.Authorities said that Poulsen, who was one of the founders of National Century, and his friend Karl A. Demmler tried to get Sherry Gibson, the government's star witness in National Century's fraud case, to fake amnesia. FBI agents tapped phone conversations and had Gibson wear a recording device.
The scheme showed that Poulsen was the puppeteer and Demmler his puppet, Marbley said. "This was an egregious offense that goes to the integrity of the judicial process," he said.
National Century collected accounts receivable for health-care providers for a fee. The company went bankrupt after offering hundreds of millions of dollars in unsecure loans to health-care providers.
Demmler, 57, was to be sentenced yesterday on the same charges. But his attorney was granted a continuance for a psychological report, saying Demmler is becoming mentally unstable. Demmler has told jail workers that he drinks his urine.
Poulsen was the fifth National Century employee to be sentenced this week. The other four and their prison terms: Donald H. Ayers, 72, 15 years; James E. Dierker Jr., 40, five years; Roger Faulkenberry, 47, 10 years; and Randolph H. Speer, 57, 12 years.
A sixth defendant, Rebecca S. Parrett, disappeared after she was convicted.
Poulsen also faces fraud charges and is scheduled for trial Oct. 1.
jandes@dispatch.com
Apologetic executive gets 10 years
Saturday, August 9, 2008 3:10 AM
By Jodi Andes
THE COLUMBUS DISPATCH
Poulsen
Demmler
Minutes before Lance K. Poulsen was sentenced for trying to bribe the star witness in the nation's largest private-fraud case, he apologized.
Yesterday, nearly all objections made by Poulsen's attorneys to keep their client from a long prison term were shot down by the judge in three hours of debate.
Poulsen was then given the option to speak before he was sentenced for witness tampering and obstruction of justice.
Shackled at the hands and feet, Poulsen offered the first apology for the 2002 demise of Dublin-based National Century Financial Enterprises, where 350 employees lost their jobs and investors lost more than $2 billion.
"I want to express my remorse. I have had many months of imprisonment to consider my conduct," Poulsen said. "But there is no question that NCFE's failure hurt many families.
"These were good people employed at NCFE and now have no future. There is no question that NCFE was my company. … I was ultimately responsible for my company's welfare and their welfare."
The statements followed a tearful plea from Poulsen's wife, Barbara, to the judge.
"He is sincere and unselfish in his motives. I truly believe he is a really good man," she said, crying. "I just ask for your leniency in the sentencing."
The most common sentence for such crimes is less than two years in prison, Poulsen's attorney Pete Anderson noted.
Federal Judge Algenon L. Marbley, however, sentenced Poulsen, 65, to 10 years in a federal prison.Authorities said that Poulsen, who was one of the founders of National Century, and his friend Karl A. Demmler tried to get Sherry Gibson, the government's star witness in National Century's fraud case, to fake amnesia. FBI agents tapped phone conversations and had Gibson wear a recording device.
The scheme showed that Poulsen was the puppeteer and Demmler his puppet, Marbley said. "This was an egregious offense that goes to the integrity of the judicial process," he said.
National Century collected accounts receivable for health-care providers for a fee. The company went bankrupt after offering hundreds of millions of dollars in unsecure loans to health-care providers.
Demmler, 57, was to be sentenced yesterday on the same charges. But his attorney was granted a continuance for a psychological report, saying Demmler is becoming mentally unstable. Demmler has told jail workers that he drinks his urine.
Poulsen was the fifth National Century employee to be sentenced this week. The other four and their prison terms: Donald H. Ayers, 72, 15 years; James E. Dierker Jr., 40, five years; Roger Faulkenberry, 47, 10 years; and Randolph H. Speer, 57, 12 years.
A sixth defendant, Rebecca S. Parrett, disappeared after she was convicted.
Poulsen also faces fraud charges and is scheduled for trial Oct. 1.
jandes@dispatch.com
James K Happ, NCFE, and WHERE did thisman come from?
Source : ANNUAL MEETING OF STOCKHOLDERS
SEPTEMBER 9, 2003-Med Diversified Inc.
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.
Funny,,,,,He left Columbia/HCA and went to NCFE for a brief stay....but what was his purpose to be at NCFE. After all, he was only there for a BRIEF stay, until.....
SMELL A RAT????
Let's look at this:
Happ: 1997 Chief Financial Officer of the Dallas-based Columbia Homecare Group, Inc., /////more than $1 billion in revenue in 1997!!
What was the revenue in 1998? After the Health Care Reform Act was passed in 1997)
What was the Stock Price of the parent company of Columbia Homecare Group, Inc.,, i.e. HCA in 1997, 1998, 1999? How did the market react to the announcement of the "HOMECARE" selloff of HCA's Columbia Homecare Group, Inc.,?
But the bigger question, To Whom did James Happ sell this "HOMECARE" division to? And how did he secure the "FINANCE" for the "DIVESTITURE"? The divestiture that he claimed credit for?
Once again, "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."
Now this is where it starts getting very interesting!
OK.....Happ leaves HCA, after selling off the LOSING HOMECARE FACILITIES via NCFE FUNDING...for which that compnay filed Bankruptcy July 1999.
How did a company with more than $1 billion in revenue in 1997 sell in 1998 to a compnay that filed bankruptcy in 1999 with NO RECORD of the actual amount paid for these LOSERS or FINANCED BY NCFE and family!!!
And the DOJ states this CASE has come to an END? I think not!
SEPTEMBER 9, 2003-Med Diversified Inc.
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.
Funny,,,,,He left Columbia/HCA and went to NCFE for a brief stay....but what was his purpose to be at NCFE. After all, he was only there for a BRIEF stay, until.....
SMELL A RAT????
Let's look at this:
Happ: 1997 Chief Financial Officer of the Dallas-based Columbia Homecare Group, Inc., /////more than $1 billion in revenue in 1997!!
What was the revenue in 1998? After the Health Care Reform Act was passed in 1997)
What was the Stock Price of the parent company of Columbia Homecare Group, Inc.,, i.e. HCA in 1997, 1998, 1999? How did the market react to the announcement of the "HOMECARE" selloff of HCA's Columbia Homecare Group, Inc.,?
But the bigger question, To Whom did James Happ sell this "HOMECARE" division to? And how did he secure the "FINANCE" for the "DIVESTITURE"? The divestiture that he claimed credit for?
Once again, "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."
Now this is where it starts getting very interesting!
OK.....Happ leaves HCA, after selling off the LOSING HOMECARE FACILITIES via NCFE FUNDING...for which that compnay filed Bankruptcy July 1999.
How did a company with more than $1 billion in revenue in 1997 sell in 1998 to a compnay that filed bankruptcy in 1999 with NO RECORD of the actual amount paid for these LOSERS or FINANCED BY NCFE and family!!!
And the DOJ states this CASE has come to an END? I think not!
Judge Algenon Marbley ..."eligible to serve 35 years in prison but said .....
said that duration would have been an excessive sentence.
Friday, August 8, 2008 - 2:09 PM EDT | Modified: Friday, August 8, 2008 - 2:15 PM
NCFE’s Poulsen gets 10 years on witness tampering attempt
Business First of Columbus - by Kevin Kemper
Lance Poulsen, who once headed the former National Century Financial Enterprises Inc., was sentenced Friday to 10 years in prison and a fine for trying to get a witness to change her testimony at his upcoming fraud trial linked to the company’s collapse.
U.S. District Court Judge Algenon Marbley handed down the sentence, ordering prison time as well as a $17,500 fine.
“This was an egregious offense,” Marbley said. “It goes to the integrity of the judicial process.”
Marbley also sentenced Poulsen, who co-founded National Century, to three years of supervised release once he completes his time in jail.
Poulsen was eligible to serve 35 years in prison. Marbley said that duration would have been an excessive sentence.
A jury found Poulsen, 65, guilty in March of attempting to bribe Sherry Gibson, a former National Century employee and federal witness, into changing her testimony for an upcoming trial in which Poulsen is accused of fraud. Poulsen was convicted of conspiracy to obstruct justice, witness tampering, witness tampering by influencing testimony and corruptly persuading a federal witness.
His friend Karl Demmler, once the owner of a Dublin tavern, was convicted on the same counts. Demmler will be sentenced at a later date.
Poulsen still must stand trial on fraud charges stemming from the 2002 collapse of National Century. Shortly before his witness tampering trial, five executives of the former company were convicted on charges stemming from the government’s claim that as much as $2.89 billion from investors was lost in a fraud they conducted at the company.
Four of those executives were sentenced this week. Rebecca Parrett, also convicted, disappeared from her Arizona home where she was sent to await sentencing. Government officials continue to search for her.
Raising objections
When U.S. marshals led a shackled Poulsen into the courtroom Friday, he mouthed “thank you” to supporters in the gallery. During a break in the hearing, he turned around in his chair to smile and wink at his wife.
Before Marbley sentenced Poulsen, attorneys for the government and the former executive sparred over a presentence investigation report. Lawyer William Terpening criticized the report’s recommendation that Poulsen serve more time in prison because of the loss investors suffered in National Century’s failure. The report, Terpening said, alleges investors suffered billions of dollars in losses but it doesn’t take into account money the government recovered.
The money recovered since National Century’s bankruptcy should not be counted against the total loss, said Leo Wise, an attorney for the government, because it was recovered without help from Poulsen. Marbley agreed with government.
Terpening also argued that the report’s assertion that sophisticated means used in the fraud should be considered when sentencing Poulsen is incorrect because the former CEO hasn’t been convicted of fraud. Marbley said he found those so-called sophisticated means were used in not just the crime proven in the trial that Poulsen tried to influence, but also in the witness tampering case.
“They went to great lengths to avoid detection,” Marbley said of Poulsen and Demmler and a complicated transfer of money the two had planned.
Friday, August 8, 2008 - 2:09 PM EDT | Modified: Friday, August 8, 2008 - 2:15 PM
NCFE’s Poulsen gets 10 years on witness tampering attempt
Business First of Columbus - by Kevin Kemper
Lance Poulsen, who once headed the former National Century Financial Enterprises Inc., was sentenced Friday to 10 years in prison and a fine for trying to get a witness to change her testimony at his upcoming fraud trial linked to the company’s collapse.
U.S. District Court Judge Algenon Marbley handed down the sentence, ordering prison time as well as a $17,500 fine.
“This was an egregious offense,” Marbley said. “It goes to the integrity of the judicial process.”
Marbley also sentenced Poulsen, who co-founded National Century, to three years of supervised release once he completes his time in jail.
Poulsen was eligible to serve 35 years in prison. Marbley said that duration would have been an excessive sentence.
A jury found Poulsen, 65, guilty in March of attempting to bribe Sherry Gibson, a former National Century employee and federal witness, into changing her testimony for an upcoming trial in which Poulsen is accused of fraud. Poulsen was convicted of conspiracy to obstruct justice, witness tampering, witness tampering by influencing testimony and corruptly persuading a federal witness.
His friend Karl Demmler, once the owner of a Dublin tavern, was convicted on the same counts. Demmler will be sentenced at a later date.
Poulsen still must stand trial on fraud charges stemming from the 2002 collapse of National Century. Shortly before his witness tampering trial, five executives of the former company were convicted on charges stemming from the government’s claim that as much as $2.89 billion from investors was lost in a fraud they conducted at the company.
Four of those executives were sentenced this week. Rebecca Parrett, also convicted, disappeared from her Arizona home where she was sent to await sentencing. Government officials continue to search for her.
Raising objections
When U.S. marshals led a shackled Poulsen into the courtroom Friday, he mouthed “thank you” to supporters in the gallery. During a break in the hearing, he turned around in his chair to smile and wink at his wife.
Before Marbley sentenced Poulsen, attorneys for the government and the former executive sparred over a presentence investigation report. Lawyer William Terpening criticized the report’s recommendation that Poulsen serve more time in prison because of the loss investors suffered in National Century’s failure. The report, Terpening said, alleges investors suffered billions of dollars in losses but it doesn’t take into account money the government recovered.
The money recovered since National Century’s bankruptcy should not be counted against the total loss, said Leo Wise, an attorney for the government, because it was recovered without help from Poulsen. Marbley agreed with government.
Terpening also argued that the report’s assertion that sophisticated means used in the fraud should be considered when sentencing Poulsen is incorrect because the former CEO hasn’t been convicted of fraud. Marbley said he found those so-called sophisticated means were used in not just the crime proven in the trial that Poulsen tried to influence, but also in the witness tampering case.
“They went to great lengths to avoid detection,” Marbley said of Poulsen and Demmler and a complicated transfer of money the two had planned.
How did James K Happ Arrive at NCFE? Better yet.....
WHY did James K Happ work at NCFE? Where did this man come from before he arrived at NCFE? and WHEN? Why is James K Happ the LAST MAN STANDING TRIAL?
December,,,,,,,AFTER THE ELECTION......Think there is no connection?
James K. Happ, a certified public accountant and former executive vice president for servicer operations......
"In a scheme which lasted for years.....
"These sentences mark the end of a nearly six-year march to justice.....
DOJ : "These sentences mark the end..."
THE END ? What about trials in October and more importantly December ....
Just like the "Market Analysts" MISSED this SCHEME.....(Not sure if that is true)
But we must question if our '4th ARM of Government'(Journalists) Missing the TRUE ACCURATE SCHEME!
Now with statements like this, "When National Century collapsed in November 2002, more than 275 health-care providers ..." one could think that NCFE was the responsible sole party for the Bankruptcyof 275 health-care provders.....
But what 'financial state' were these providers in when they SOLD their Receivables in the first place? How much was NCFE promising for their receivables? Pennieson the dollar? WAKE UP!!!
FOR IMMEDIATE RELEASE
Thursday, August 7, 2008
WWW.USDOJ.GOVCRM
(202) 514-2007
TDD (202) 514-1888
Former National Century Financial Enterprises Executives Sentenced for Roles in $3 Billion Securities Fraud Scheme
WASHINGTON – 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., an 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.
###
08-700
December,,,,,,,AFTER THE ELECTION......Think there is no connection?
James K. Happ, a certified public accountant and former executive vice president for servicer operations......
"In a scheme which lasted for years.....
"These sentences mark the end of a nearly six-year march to justice.....
DOJ : "These sentences mark the end..."
THE END ? What about trials in October and more importantly December ....
Just like the "Market Analysts" MISSED this SCHEME.....(Not sure if that is true)
But we must question if our '4th ARM of Government'(Journalists) Missing the TRUE ACCURATE SCHEME!
Now with statements like this, "When National Century collapsed in November 2002, more than 275 health-care providers ..." one could think that NCFE was the responsible sole party for the Bankruptcyof 275 health-care provders.....
But what 'financial state' were these providers in when they SOLD their Receivables in the first place? How much was NCFE promising for their receivables? Pennieson the dollar? WAKE UP!!!
FOR IMMEDIATE RELEASE
Thursday, August 7, 2008
WWW.USDOJ.GOVCRM
(202) 514-2007
TDD (202) 514-1888
Former National Century Financial Enterprises Executives Sentenced for Roles in $3 Billion Securities Fraud Scheme
WASHINGTON – 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., an 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.
###
08-700
James K. Happ, a certified public accountant and former executive vice president for servicer operations will face charges of conspiracy and wire frau
By AmericasNewsToday.Org staff
By AmericasNewsTodayCom
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 ...
Lance K. Poulsen, the former chief executive officer of National Century Financial Enterprises (NCFE), was sentenced in U.S. District Court in Columbus, Ohio, today to ten years in prison for conspiring to interfere with a witness who was preparing to testify in the fraud trial against Poulsen and other NCFE executives involved in a $3 billon securities fraud scheme, announced Acting Assistant Attorney General Matthew Friedrich, U.S. Attorney Gregory G. Lockhart for the Southern District of Ohio and Keith L. Bennett, Special Agent-in-Charge of the FBI’s Cincinnati Field Division.
U.S. District Court Judge Algenon L. Marbley also fined Poulsen $17,500 as part of the sentence. Poulsen, 65, and his personal associate, Karl A. Demmler, 57, of Columbus were arrested Oct. 17, 2007, and later charged in a four-count indictment alleging that they conspired to impede the testimony of Sherry Gibson, a key witness in the securities fraud trial against Poulsen and other NCFE executives. A federal jury convicted Poulsen and Demmler on all counts on March 26, 2008, after a week-long trial. Poulsen, along with seven other NCFE executives, was indicted in July 2007 for their roles in a scheme to deceive investors about the financial health of NCFE. Five of the defendants were found guilty on all counts of the indictment in March 2008.
During the trial, the jury heard audio recordings of meetings that took place over a period of months between Demmler and Gibson and more than two months of intercepted wire communications between Poulsen and Demmler. The recordings revealed that the defendants offered Gibson money to lie and attempted to influence her testimony at the NCFE fraud trial. According to the recordings presented at trial, Demmler offered Gibson money if she would have "memory lapses" when she testified against Poulsen. The jury also heard tapes of conversations between Poulsen and Demmler discussing ways to keep the witness from testifying.
Poulsen was president, chairman, chief executive officer and an owner of Dublin, Ohio-based NCFE, one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
After the witness tampering indictment was returned, Poulsen’s fraud trial was severed from the other NCFE defendants. Poulsen will face the fraud charges at trial scheduled to begin Oct. 1, 2008. Demmler's sentencing date has not yet been set. Both men have been in custody since their arrests.
The case is being prosecuted by Assistant U.S. Attorney Doug Squires and Trial Attorneys Leo Wise and Nathan Dimock of the Criminal Division’s Fraud Section. The case was investigated by the FBI.
For more information, visit:
Former National Century Financial Enterprises Executives
Sentenced for Roles in $3 Billion Securities Fraud Scheme.
By AmericasNewsToday.Org staff
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 Thursday [08-07-08]. 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., an 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.
By AmericasNewsTodayCom
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 ...
Lance K. Poulsen, the former chief executive officer of National Century Financial Enterprises (NCFE), was sentenced in U.S. District Court in Columbus, Ohio, today to ten years in prison for conspiring to interfere with a witness who was preparing to testify in the fraud trial against Poulsen and other NCFE executives involved in a $3 billon securities fraud scheme, announced Acting Assistant Attorney General Matthew Friedrich, U.S. Attorney Gregory G. Lockhart for the Southern District of Ohio and Keith L. Bennett, Special Agent-in-Charge of the FBI’s Cincinnati Field Division.
U.S. District Court Judge Algenon L. Marbley also fined Poulsen $17,500 as part of the sentence. Poulsen, 65, and his personal associate, Karl A. Demmler, 57, of Columbus were arrested Oct. 17, 2007, and later charged in a four-count indictment alleging that they conspired to impede the testimony of Sherry Gibson, a key witness in the securities fraud trial against Poulsen and other NCFE executives. A federal jury convicted Poulsen and Demmler on all counts on March 26, 2008, after a week-long trial. Poulsen, along with seven other NCFE executives, was indicted in July 2007 for their roles in a scheme to deceive investors about the financial health of NCFE. Five of the defendants were found guilty on all counts of the indictment in March 2008.
During the trial, the jury heard audio recordings of meetings that took place over a period of months between Demmler and Gibson and more than two months of intercepted wire communications between Poulsen and Demmler. The recordings revealed that the defendants offered Gibson money to lie and attempted to influence her testimony at the NCFE fraud trial. According to the recordings presented at trial, Demmler offered Gibson money if she would have "memory lapses" when she testified against Poulsen. The jury also heard tapes of conversations between Poulsen and Demmler discussing ways to keep the witness from testifying.
Poulsen was president, chairman, chief executive officer and an owner of Dublin, Ohio-based NCFE, one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
After the witness tampering indictment was returned, Poulsen’s fraud trial was severed from the other NCFE defendants. Poulsen will face the fraud charges at trial scheduled to begin Oct. 1, 2008. Demmler's sentencing date has not yet been set. Both men have been in custody since their arrests.
The case is being prosecuted by Assistant U.S. Attorney Doug Squires and Trial Attorneys Leo Wise and Nathan Dimock of the Criminal Division’s Fraud Section. The case was investigated by the FBI.
For more information, visit:
Former National Century Financial Enterprises Executives
Sentenced for Roles in $3 Billion Securities Fraud Scheme.
By AmericasNewsToday.Org staff
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 Thursday [08-07-08]. 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., an 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.
Friday, August 8, 2008
...former CEO of National Century Financial Enterprises was sentenced to 10 years in prison
Where is this guy?
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.
The former CEO of National Century Financial Enterprises was sentenced to 10 years in prison today for witness tampering and obstruction of justice -- charges related to the fraud that brought down the company in 2002.
Lance K. Poulsen was convicted in March in the courtroom of federal Judge Algenon L. Marbley, who sentenced him.
Poulsen, 65, and his friend Karl A. Demmler, 57, were found guilty of trying to convince the government's key witness in the company fraud case to fake amnesia.
Wire taps on the phones of Demmler and Poulsen showed how they offered Sherry Gibson money if she would forget facts about National Century dealings.
Demmler was scheduled for sentencing today but his attorney was granted a continuance for a psychological evaluation. Demmler has become mentally unstable and has told jail employees that he has been drinking his urine to help with his problems, his attorney said in court filings.
National Century was a Dublin-based company that, for a fee, collected accounts receivable for health-care providers. National Century used investors' money to give cash to the providers so they could pay their bills.
When National Century collapsed in November 2002, more than 275 health-care providers went bankrupt. Investors lost nearly $2 billion in what prosecutors have billed as the nation's largest case of private-sector fraud.
Five former executives of National Century were convicted of fraud-related charges in March. Four were sentenced this week:
Donald H. Ayers, 72, to 15 years
James E. Dierker Jr., 40, to five years
Roger Faulkenberry, 47, to 10 years
Randolph H. Speer, 57, to 12 years
The fifth, Rebecca S. Parrett, disappeared after the verdict and remains at large.
Poulsen faces fraud charges as well and is scheduled for trial Oct. 1.
jandes@dispatch.com
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.
The former CEO of National Century Financial Enterprises was sentenced to 10 years in prison today for witness tampering and obstruction of justice -- charges related to the fraud that brought down the company in 2002.
Lance K. Poulsen was convicted in March in the courtroom of federal Judge Algenon L. Marbley, who sentenced him.
Poulsen, 65, and his friend Karl A. Demmler, 57, were found guilty of trying to convince the government's key witness in the company fraud case to fake amnesia.
Wire taps on the phones of Demmler and Poulsen showed how they offered Sherry Gibson money if she would forget facts about National Century dealings.
Demmler was scheduled for sentencing today but his attorney was granted a continuance for a psychological evaluation. Demmler has become mentally unstable and has told jail employees that he has been drinking his urine to help with his problems, his attorney said in court filings.
National Century was a Dublin-based company that, for a fee, collected accounts receivable for health-care providers. National Century used investors' money to give cash to the providers so they could pay their bills.
When National Century collapsed in November 2002, more than 275 health-care providers went bankrupt. Investors lost nearly $2 billion in what prosecutors have billed as the nation's largest case of private-sector fraud.
Five former executives of National Century were convicted of fraud-related charges in March. Four were sentenced this week:
Donald H. Ayers, 72, to 15 years
James E. Dierker Jr., 40, to five years
Roger Faulkenberry, 47, to 10 years
Randolph H. Speer, 57, to 12 years
The fifth, Rebecca S. Parrett, disappeared after the verdict and remains at large.
Poulsen faces fraud charges as well and is scheduled for trial Oct. 1.
jandes@dispatch.com
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