The following is an excerpt from a 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006.
Enron litigation. JPMorgan Chase and certain of its officers and directors are
involved in a number of lawsuits arising out of its banking relationships with
Enron Corp.
The three current or former Firm employees are sued in their roles as former
members of NCFE's board of directors (the "Defendant Employees"). JPMorgan
Chase, JPMorgan Partners and Beacon Group, LLC, are claimed to be vicariously
liable for the alleged actions of the Defendant Employees. Banc One Capital
Markets, Inc. is sued in its role as co-manager for three note offerings made by
NPF XII. Other defendants include the founders and key executives of NCFE, its
auditors and outside counsel, and rating agencies and placement agents that were
involved with the issuance of the Notes. Plaintiffs in these actions include
institutional investors who purchased more than $2.7 billion in original face
amount of asset-backed securities issued by NCFE
National Century Financial Enterprises litigation. JPMorgan Chase, JPMorgan
Chase Bank, JPMorgan Partners, Beacon Group, LLC and three current or former
Firm employees have been named as defendants in more than a dozen actions filed
in or transferred to the United States District Court for the Southern District
of Ohio (the "MDL Litigation"). In the majority of these actions, Bank One, Bank
One, N.A., and Banc One Capital Markets, Inc. are also named as defendants.
JPMorgan Chase Bank and Bank One, N.A. are also defendants in an action brought
by The Unencumbered Assets Trust ("UAT"), a trust created for the benefit of the
creditors of National Century Financial Enterprises, Inc. ("NCFE") as a result
of NCFE's Plan of Liquidation in bankruptcy. These actions arose out of the
November 2002 bankruptcy of NCFE. Prior to bankruptcy, NCFE provided financing
to various healthcare providers through wholly-owned special-purpose vehicles,
including NPF VI and NPF XII, which purchased discounted accounts receivable to be paid under third-party insurance programs. NPF VI and NPF XII financed thepurchases of such receivables, primarily through private placements of notes ("Notes") to institutional investors and pledged the receivables for, among
other things, the repayment of the Notes. In the MDL Litigation, JPMorgan Chase
Bank is sued in its role as indenture trustee for NPF VI, which issued
approximately $1 billion in Notes. Bank One, N.A. is sued in its role as indenture trustee for NPF XII, which issued approximately $2 billion in Notes.
The three current or former Firm employees are sued in their roles as former
members of NCFE's board of directors (the "Defendant Employees"). JPMorgan
Chase, JPMorgan Partners and Beacon Group, LLC, are claimed to be vicariously
liable for the alleged actions of the Defendant Employees. Banc One Capital
Markets, Inc. is sued in its role as co-manager for three note offerings made by
. Other defendants include the founders and key executives of NCFE, its
auditors and outside counsel, and rating agencies and placement agents that were
involved with the issuance of the Notes. Plaintiffs in these actions include
institutional investors who purchased more than $2.7 billion in original face
amount of asset-backed securities issued by NCFE
Item 2: Properties
The headquarters of JPMorgan Chase is located in New York City at 270 Park
Avenue, which is a 50-story bank and office building owned by JPMorgan Chase.
This location contains approximately 1.3 million square feet of space. In total,
JPMorgan Chase owns or leases approximately 12.3 million square feet of
commercial office space and retail space in New York City.
JPMorgan Chase and its subsidiaries also own or lease significant administrative
and operational facilities in Chicago, Illinois (5.1 million square feet),
Houston and Dallas, Texas (6.8 million square feet), Columbus, Ohio (2.9 million
square feet), Newark and Wilmington, Delaware (2.2 million square feet),
Phoenix, Arizona (1.4 million square feet), Tampa, Florida (1.0 million square
feet), Jersey City, New Jersey (1.2 million square feet), and Indianapolis,
Indiana (900 thousand square feet).
Outside the United States, JPMorgan Chase owns or leases facilities in the
United Kingdom (2.7 million square feet) and in other countries (2.6 million
square feet).
In addition, JPMorgan Chase and its subsidiaries occupy offices and other
administrative and operational facilities throughout the world under various
types of ownership and leasehold agreements, including 2,641 retail branches in
the United States. The properties occupied by JPMorgan Chase are used across all
of the Firm's business segments and for corporate purposes.
JPMorgan Chase continues to evaluate its current and projected space
requirements. There is no assurance that the Firm will be able to dispose of its
excess premises or that it will not incur charges in connection with such
dispositions. Such disposition costs may be material to the Firm's results of
operations in a given period. For a discussion of occupancy expense, see the
Consolidated results of operations discussion on pages 29-30.
Item 3: Legal proceedings
Enron litigation. JPMorgan Chase and certain of its officers and directors areinvolved in a number of lawsuits arising out of its banking relationships with
Enron Corp. and its subsidiaries ("Enron"). Several actions and other
proceedings, against the Firm, have been resolved, including adversary
proceedings brought by Enron's bankruptcy estate. In addition, as previously
reported, the Firm has reached an agreement to settle the lead class action
litigation brought on behalf of the purchasers of Enron securities, captioned
Newby v. Enron Corp., for $2.2 billion (pretax). The settlement is subject to
approval by the United States District Court for the Southern District of Texas.
The Newby settlement does not resolve Enron-related actions filed separately by
plaintiffs who opt out of the class action, or by certain plaintiffs who are
asserting claims not covered by that action.
The remaining Enron-related actions include individual actions against the Firm
by plaintiffs who were lenders or claim to be successors-in-interest to lenders
who participated in Enron credit facilities syndicated by the Firm; individual
and putative class actions by Enron investors, creditors and counterparties; and
third-party actions brought by defendants in Enron-related cases, alleging
federal and state law claims against JPMorgan Chase and many other defendants.
Fact discovery in these actions is mostly complete. Plaintiffs in two of the
bank lender cases have moved for partial summary judgment, which the Firm will
oppose.
In a purported, consolidated class action lawsuit by JPMorgan Chase stockholders
alleging that the Firm issued false and misleading press releases and other
public documents relating to Enron in violation of Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder, the United States
District Court for the Southern District of New York dismissed the lawsuit in
its entirety without prejudice in March 2005. Plaintiffs filed an amended
complaint in May 2005. The Firm has moved to dismiss the amended complaint, and
the motion has been submitted to the court for decision.
In a putative class action on behalf of JPMorgan Chase employees who
participated in the Firm's 401(k) plan are alleging claims under the Employee
Retirement Income Security Act ("ERISA") for alleged breaches of fiduciary
duties and negligence by JPMorgan Chase, its directors and named officers. In
August 2005, the United States District Court for the Southern District of New
York denied plaintiffs' motion for class certification and ordered some of
plaintiffs' claims dismissed. A petition has been filed by the plaintiffs
seeking review of the denial of class certification in the United States Court
of Appeals for the Second Circuit, which petition remains pending. The Firm has
also moved for summary judgment seeking dismissal of this ERISA lawsuit in its
entirety.
IPO allocation litigation. Beginning in May 2001, JPMorgan Chase and certain of
its securities subsidiaries were named, along with numerous other firms in the
securities industry, as defendants in a large number of putative class action
lawsuits filed in the United States District Court for the Southern District of
New York. These suits allege improprieties in the allocation of stock in various
public offerings, including some offerings for which a JPMorgan Chase entity
served as an underwriter. The suits allege violations of securities and
antitrust laws arising from alleged material misstatements and omissions in
registration statements and prospectuses for the initial public offerings
("IPOs") and alleged market manipulation with respect to aftermarket
transactions in the offered securities. The securities lawsuits allege, among
other things, misrepresentation and market manipulation of the aftermarket
trading for these offerings by tying allocations of shares in IPOs to
undisclosed excessive commissions paid to JPMorgan Chase and to required
aftermarket purchase transactions by customers who received allocations of
shares in the respective IPOs, as well as allegations of misleading analyst
reports. The antitrust lawsuits allege an illegal conspiracy to require
customers, in exchange for IPO allocations, to pay undisclosed and excessive
commissions and to make aftermarket purchases of the IPO securities at a price
higher than the offering price as a precondition to receiving allocations. The
securities cases were all assigned to one judge for coordinated pre-trial
proceedings, and the antitrust cases were all assigned to another judge. On
February 13, 2003, the Court denied the motions of JPMorgan Chase and others to
dismiss the securities complaints. On October 13, 2004, the Court granted in
part plaintiffs' motion to certify classes in six "focus" cases in the
securities litigation. On June 30, 2005, the United States Court of Appeals for
the Second Circuit granted the underwriter defendants' petition for permission
to appeal the district court's class certification decision, and the appeal
currently is being briefed. The Second Circuit likely will hear oral argument
sometime during the first half of 2006.
In addition, on February 15, 2005, the Court in the securities cases
preliminarily approved a proposed settlement of plaintiffs' claims against 298
of the issuer defendants in these cases and a fairness hearing on the proposed
settlement is now scheduled for April 24, 2006. Pursuant to the proposed issuer
settlement, the insurers for the settling issuer defendants, among other things,
(1) agreed to guarantee that the plaintiff classes will recover at least
$1 billion from the underwriter defendants in the IPO securities and antitrust
7
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Part I
cases and to pay any shortfall, and (2) conditionally assigned to the plaintiffs
any claims related to any "excess compensation" allegedly paid to the
underwriters by their customers for allocations of stock in the offerings at
issue in the IPO litigation. Joseph P. Lasala, the trustee designated by
plaintiffs to act as assignee of such issuer excess compensation claims, filed
complaints purporting to allege state law claims on behalf of certain issuers
against JPMSI and other underwriters (the "LaSala Actions"), together with
motions to stay proceedings in each case. To date, JPMSI is a defendant in more
than half of the approximately 100 pending LaSala Actions. On August 30, 2005,
the Court stayed until resolution of the proposed issuer settlement the
LaSalaActions then pending against JPMSI and other underwriter defendants at
that time, as well as all future-filed LaSala Actions pursuant to the parties'
stipulation that the Court's decision would govern stay motions in all future
LaSala Actions. On October 12, 2005, the Court granted the underwriter
defendants' motion to dismiss one LaSala Action, which by stipulation applied to
the parallel motions to dismiss in all other pending and future-filed LaSala
Actions. The Court did, however, grant Plaintiffs leave to replead and noted
that the stay of the LaSala Actions remains in effect. Plaintiffs thereafter
filed amended complaints in the lead and other LaSala Actions in which
Plaintiffs are purportedly seeking equitable restitution on a breach of
fiduciary duty claim - a claim that sought damages in the initial LaSala
complaints and was dismissed on the ground that it was time-barred. On
November 21, 2005, the underwriter defendants moved to dismiss the amended
complaint in the lead LaSala Action and - by virtue of the stipulation of the
parties - thereby moved to dismiss the amended complaints in all other pending
and future-filed LaSalaActions. The motion currently is being briefed.
With respect to the IPO antitrust lawsuits, on November 3, 2003, the Court
granted defendants' motion to dismiss the claims relating to the IPO allocation
practices in the IPO Allocation Antitrust Litigation. On September 28, 2005, the
United States Court of Appeals for the Second Circuit reversed, vacated and
remanded the district court's November 3, 2003, dismissal decision. Defendants'
motion for rehearing en banc in the Second Circuit was denied on January 11,
2006.
A wholly separate antitrust class action lawsuit on behalf of a class of IPO
issuers alleging that JPMSI and other underwriters conspired to fix their
underwriting fees in IPOs is in discovery.
National Century Financial Enterprises litigation. JPMorgan Chase, JPMorgan
Chase Bank, JPMorgan Partners, Beacon Group, LLC and three current or former
Firm employees have been named as defendants in more than a dozen actions filed
in or transferred to the United States District Court for the Southern District
of Ohio (the "MDL Litigation"). In the majority of these actions, Bank One, Bank
One, N.A., and Banc One Capital Markets, Inc. are also named as defendants.
JPMorgan Chase Bank and Bank One, N.A. are also defendants in an action brought
by The Unencumbered Assets Trust ("UAT"), a trust created for the benefit of the
creditors of National Century Financial Enterprises, Inc. ("NCFE") as a result
of NCFE's Plan of Liquidation in bankruptcy. These actions arose out of the
November 2002 bankruptcy of NCFE. Prior to bankruptcy, NCFE provided financing
to various healthcare providers through wholly-owned special-purpose vehicles,
including NPF VI and NPF XII, which purchased discounted accounts receivable to
be paid under third-party insurance programs. NPF VI and NPF XII financed the
purchases of such receivables, primarily through private placements of notes
("Notes") to institutional investors and pledged the receivables for, among
other things, the repayment of the Notes. In the MDL Litigation, JPMorgan Chase
Bank is sued in its role as indenture trustee for NPF VI, which issued
approximately $1 billion in Notes. Bank One, N.A. is sued in its role as
indenture trustee for NPF XII, which issued approximately $2 billion in Notes.
The three current or former Firm employees are sued in their roles as former
members of NCFE's board of directors (the "Defendant Employees"). JPMorgan
Chase, JPMorgan Partners and Beacon Group, LLC, are claimed to be vicariously
liable for the alleged actions of the Defendant Employees. Banc One Capital
Markets, Inc. is sued in its role as co-manager for three note offerings made by
NPF XII. Other defendants include the founders and key executives of NCFE, its
auditors and outside counsel, and rating agencies and placement agents that were
involved with the issuance of the Notes. Plaintiffs in these actions include
institutional investors who purchased more than $2.7 billion in original face
amount of asset-backed securities issued by NCFE. Plaintiffs allege that the
trustees violated fiduciary and contractual duties, improperly permitted NCFE
and its affiliates to violate the applicable indentures and violated securities
laws by (among other things) failing to disclose the true nature of the NCFE
arrangements. Plaintiffs further allege that the Defendant Employees controlled
the Board and audit committees of the NCFE entities; were fully aware or
negligent in not knowing of NCFE's alleged manipulation of its books; and are
liable for failing to disclose their purported knowledge of the alleged fraud to
the plaintiffs. Plaintiffs also allege that Banc One Capital Markets, Inc. is
liable for cooperating in the sale of securities based upon false and misleading
statements. Motions to dismiss on behalf of the JPMorgan Chase entities, the
Bank One entities and the Defendant Employees are currently pending. In the UAT
action, JPMorgan Chase Bank and Bank One are sued in their roles as indenture
trustees. Claims are asserted under the Federal Racketeer Influenced and Corrupt
Organizations Act ("RICO"), the Ohio Corrupt Practices Act and various
common-law claims. On March 31, 2005, motions to dismiss the UAT action were
filed on behalf of JPMorgan Chase Bank. These motions are currently pending. On
February 22, 2006, the JPMorgan Chase entities, the Bank One entities and the
Defendant Employees reached a settlement with the holders of $1.6 billion face
value of Notes (the "Arizona Noteholders"), and reached a separate agreement
with the UAT. The settlements are contingent upon the entry of certain orders by
the MDL court and bankruptcy courts. Assuming the contingencies are met, the
Firm has agreed to pay the Arizona Noteholders the sum of $375 million for all
claims and potential claims held by them and has agreed to pay the UAT the sum
of $50 million for all claims or potential claims held by it.
In addition, the Securities and Exchange Commission has served subpoenas on
JPMorgan Chase Bank and Bank One, N.A. ("Bank One") and has interviewed certain
current and former employees. On April 25, 2005, the staff of the Midwest
Regional Office of the SEC wrote to advise Bank One that it is considering
recommending that the Commission bring a civil injunctive action against Bank
One and a former employee alleging violations of the securities laws in
connection with Bank One's role as indenture trustee for the NPF XII note
program. On July 8, 2005, the staff of the Midwest Regional Office of the
Securities and Exchange Commission wrote to advise that it is considering
recommending that the Commission bring a civil injunctive action against two
individuals, one present and one former employee of the Firm's affiliates,
alleging violations of certain securities laws in connection with their role as
former members of NCFE's board of directors. On July 13, 2005, the staff further
advised that it is considering recommending that the Commission also bring a
civil injunctive action against the Firm in connection with the alleged
activities of the two individuals as alleged agents of the Firm. Lastly, the
United States Department of Justice is also investigating the events surrounding
the collapse of NCFE, and the Firm is cooperating with that investigation.
8
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In addition to the various cases, proceedings and investigations discussed
above, JPMorgan Chase and its subsidiaries are named as defendants in a number
of other legal actions and governmental proceedings arising in connection with
their businesses. Additional actions, investigations or proceedings may be
brought from time to time in the future. In view of the inherent difficulty of
predicting the outcome of legal matters, particularly where the claimants seek
very large or indeterminate damages, or where the cases present novel legal
theories, involve a large number of parties or are in early stages of discovery,
the Firm cannot state with confidence what the eventual outcome of these pending
matters will be, what the timing of the ultimate resolution of these matters
will be or what the eventual loss, fines or penalties related to each pending
matter may be. JPMorgan Chase believes, based upon its current
knowledge, after consultation with counsel and after taking into account its
current litigation reserves, that the outcome of the legal actions, proceedings
and investigations currently pending against it should not have a material,
adverse effect on the consolidated financial condition of the Firm. However, in
light of the uncertainties involved in such proceedings, actions and
investigations, there is no assurance that the ultimate resolution of these
matters will not significantly exceed the reserves currently accrued by the
Firm; as a result, the outcome of a particular matter may be material to
JPMorgan Chase's operating results for a particular period, depending upon,
among other factors, the size of the loss or liability imposed and the level of
JPMorgan Chase's income for that period.
Tuesday, August 19, 2008
JPMORGAN CHASE & Co. & Bank One
NCFE said it was the victim of changing financial conditions and a delayed annual audit.
Ok......If this is the case, how was James Happ , the Executive from HCA/Columbia Home Care Group, who DIVESTED the HOMECARE DIVISON, to NCFE, able to convince NCFE to DUMP the losing Division of HCA/Columbia via NCFE?
JAMKES K HAPP, the EXECUTIVE who faces TRIAL in DECEMBER 2008, after EVERYONE from NCFE including the CO-FOUNDERS!!!
"...apparently without the knowledge of bond trustees J.P. Morgan Chase and Banc One Corporate Trust Services"
Apparently?......think again1
JPMORGAN CHASE & Co. (Pay attention to "& Co.")
Who in this tangled web designed the "DIP" debtor in Possession motto used across BANKRUPTCY COURTS in this country? On the cover of Fortune magazine, the one and only, Darla Moore, the wife of OIL MAN & HEALTCHARE HCA MAN, Richard Rainwater!
National Century under scrutiny; reserves reported depleted
(Story published on Friday, November 8, 2002)
Thursday, January 31, 2008 12:30 PM
By Phil Porter and Jeffrey Sheban
THE COLUMBUS DISPATCH
A Dublin-based company that lends money to the health-care industry is meeting with financial backers to sort out its finances.
Officials from National Century Financial Enterprises, which has 230 employees at its Memorial Drive headquarters, met yesterday with holders of the bonds it issues to pay for its business, spokesman Jim Nickell said.
The talks were aimed at finding out why reserve funds of bond-sale proceeds were largely depleted by NCFE, apparently without the knowledge of bond trustees J.P. Morgan Chase and Banc One Corporate Trust Services, or ratings agencies Moody's and Fitch.
Bondholders seeking answers include Pimco funds, Fremont Mutual Funds and UBS PaineWebber.
"There's no question we are working very hard to stabilize the company," Nickell said. "It's too soon to determine the outcome."
NCFE is the nation's largest purchaser of hospital, physician and other health-care receivables. It serves as a middleman between insurance companies and health-care providers around the country, including 60 hospitals, nursing homes and others.
To avoid waiting months to be paid, those health-care providers sell receivables for 97 cents on the dollar to NCFE. NCFE then collects payment from the patients' insurance carriers, Medicare or Medicaid.
Hospitals and health-care providers have been stepping forward to complain about NCFE.
Pain Control Consultants, a Grandview Heights-based pain center with 27 employees, says it hasn't been paid by the company for the past two weeks and is owed $700,000. NCFE pays out $30 million per week to its provider clients.
"When someone is getting deposits of your money and you are not getting it back, someone is stealing from you," said Dr. David Leak, medical director of Pain Control Consultants.
Leak said his company noticed accounting irregularities involving the Dublin company the past two years, adding Pain Control Consultants had received less money than owed for the past five or six months.
"I have asked five CPAs to look at their books, and they all walked away shaking their heads," Leak said.
Pain Control Consultants said it is owed for the months of September and October, when it deposited $860,000 but only received 22 percent compensation, compared with the 97 percent promised.
Leak said Pain Control Consultants has tried for months to buy out its contract with NCFE, without success.
Other providers also are complaining.
Michael Reese Hospital and Medical Center in Chicago has acknowledged that slow payments from NCFE have threatened its ability to meet payroll obligations.
NCFE's financing played an important role in 1998, when Doctors Community Healthcare of Arizona purchasing Michael Reese Hospital. Nearly $70 million in financing came from NCFE. The Arizona company also owns hospitals in Washington and Los Angeles that are NCFE clients.
Forbes has reported that NCFE has been the target of several lawsuits and allegations of fraud, including a federal suit in Baltimore that alleges NCFE was not advancing a nursing home enough money for it to maintain operations.
NCFE said it was the victim of changing financial conditions and a delayed annual audit.
The company has not been able to issue bonds since May and instead has dipped into the reserves of its biggest bond issue, called NPF XII. These reserves, not meant to be drawn on, were greatly depleted, causing credit-rating agencies to lower the company's rating.
Nickell said the audit for 2001 is being prepared by Deloitte & Touche and should be available soon.
Nickell attributed problems with Pain Control Consultants to a change in that company's status when it went under Medicare review.
"The dispute is disappointing because Dr. Leak was a long and valued customer," he said.
NCFE employs 327 at offices in Dublin; Durham, N.C.; Port Charlotte, Fla.; and Scottsdale, Ariz. The majority are in Muirfield Village, where the company had received approval last summer to improve and connect its four buildings.
The company was founded by Lance K. Poulsen, who remains chairman and chief executive; Donald H. Ayers and Rebecca S. Parrett. Ayers and Parrett, who came from OhioHealth, are retired but remain on the private company's board, Nickell said.
He said company officials weren't available for comment.
Ok......If this is the case, how was James Happ , the Executive from HCA/Columbia Home Care Group, who DIVESTED the HOMECARE DIVISON, to NCFE, able to convince NCFE to DUMP the losing Division of HCA/Columbia via NCFE?
JAMKES K HAPP, the EXECUTIVE who faces TRIAL in DECEMBER 2008, after EVERYONE from NCFE including the CO-FOUNDERS!!!
"...apparently without the knowledge of bond trustees J.P. Morgan Chase and Banc One Corporate Trust Services"
Apparently?......think again1
JPMORGAN CHASE & Co. (Pay attention to "& Co.")
Who in this tangled web designed the "DIP" debtor in Possession motto used across BANKRUPTCY COURTS in this country? On the cover of Fortune magazine, the one and only, Darla Moore, the wife of OIL MAN & HEALTCHARE HCA MAN, Richard Rainwater!
National Century under scrutiny; reserves reported depleted
(Story published on Friday, November 8, 2002)
Thursday, January 31, 2008 12:30 PM
By Phil Porter and Jeffrey Sheban
THE COLUMBUS DISPATCH
A Dublin-based company that lends money to the health-care industry is meeting with financial backers to sort out its finances.
Officials from National Century Financial Enterprises, which has 230 employees at its Memorial Drive headquarters, met yesterday with holders of the bonds it issues to pay for its business, spokesman Jim Nickell said.
The talks were aimed at finding out why reserve funds of bond-sale proceeds were largely depleted by NCFE, apparently without the knowledge of bond trustees J.P. Morgan Chase and Banc One Corporate Trust Services, or ratings agencies Moody's and Fitch.
Bondholders seeking answers include Pimco funds, Fremont Mutual Funds and UBS PaineWebber.
"There's no question we are working very hard to stabilize the company," Nickell said. "It's too soon to determine the outcome."
NCFE is the nation's largest purchaser of hospital, physician and other health-care receivables. It serves as a middleman between insurance companies and health-care providers around the country, including 60 hospitals, nursing homes and others.
To avoid waiting months to be paid, those health-care providers sell receivables for 97 cents on the dollar to NCFE. NCFE then collects payment from the patients' insurance carriers, Medicare or Medicaid.
Hospitals and health-care providers have been stepping forward to complain about NCFE.
Pain Control Consultants, a Grandview Heights-based pain center with 27 employees, says it hasn't been paid by the company for the past two weeks and is owed $700,000. NCFE pays out $30 million per week to its provider clients.
"When someone is getting deposits of your money and you are not getting it back, someone is stealing from you," said Dr. David Leak, medical director of Pain Control Consultants.
Leak said his company noticed accounting irregularities involving the Dublin company the past two years, adding Pain Control Consultants had received less money than owed for the past five or six months.
"I have asked five CPAs to look at their books, and they all walked away shaking their heads," Leak said.
Pain Control Consultants said it is owed for the months of September and October, when it deposited $860,000 but only received 22 percent compensation, compared with the 97 percent promised.
Leak said Pain Control Consultants has tried for months to buy out its contract with NCFE, without success.
Other providers also are complaining.
Michael Reese Hospital and Medical Center in Chicago has acknowledged that slow payments from NCFE have threatened its ability to meet payroll obligations.
NCFE's financing played an important role in 1998, when Doctors Community Healthcare of Arizona purchasing Michael Reese Hospital. Nearly $70 million in financing came from NCFE. The Arizona company also owns hospitals in Washington and Los Angeles that are NCFE clients.
Forbes has reported that NCFE has been the target of several lawsuits and allegations of fraud, including a federal suit in Baltimore that alleges NCFE was not advancing a nursing home enough money for it to maintain operations.
NCFE said it was the victim of changing financial conditions and a delayed annual audit.
The company has not been able to issue bonds since May and instead has dipped into the reserves of its biggest bond issue, called NPF XII. These reserves, not meant to be drawn on, were greatly depleted, causing credit-rating agencies to lower the company's rating.
Nickell said the audit for 2001 is being prepared by Deloitte & Touche and should be available soon.
Nickell attributed problems with Pain Control Consultants to a change in that company's status when it went under Medicare review.
"The dispute is disappointing because Dr. Leak was a long and valued customer," he said.
NCFE employs 327 at offices in Dublin; Durham, N.C.; Port Charlotte, Fla.; and Scottsdale, Ariz. The majority are in Muirfield Village, where the company had received approval last summer to improve and connect its four buildings.
The company was founded by Lance K. Poulsen, who remains chairman and chief executive; Donald H. Ayers and Rebecca S. Parrett. Ayers and Parrett, who came from OhioHealth, are retired but remain on the private company's board, Nickell said.
He said company officials weren't available for comment.
Two hundred local Arizona governmental entities and many governments in other states invested in NCFE,
April 11, 2007
Breaking News
Treasurer's payment to Attorney General investigated
By Phil Riske and Christian Palmer, Arizona Capitol Times
The Maricopa County Sheriff’s Office is investigating whether a $1.9 million payment from the Treasurer’s Office to the Attorney General’s Office for legal expenses was made as part of a deal to secure leniency for former treasurer David Petersen.
The June payment was for work Attorney General Terry Goddard’s office had done in obtaining a settlement in 2002 in a fraud case that cost local governments and the state $131 million in bad investments. Several sources confirm with the Arizona Capitol Times that current and former Treasurer’s Office employees have been questioned recently regarding the circumstances surrounding the payment.
In October, Petersen pleaded guilty to a single misdemeanor charge for failing to disclose a $4,200 commission he received for selling teaching materials for a character education program.
Petersen, who was facing felony charges of theft, fraud and conflict of interest, resigned Nov. 30 as part of a deal reached with Goddard. At sentencing hearing in December he was also ordered to pay $4,500 in fines and put on supervised probation for three years.
Maricopa County Sheriff Joe Arpaio would neither confirm nor deny that an investigation is being conducted, but said his office, in tandem with the Maricopa County Attorney’s Office, is “very active” in efforts against corruption by public officials.
“We have got a lot of investigations,” he said, noting recent newspaper reports of an official inquiry into possible corruption surrounding the light-rail construction project.
Barnett Lotstein, a spokesman for Maricopa County Attorney Andrew Thomas, said he could not confirm or deny an investigation of the payment.
Through his press aide, Andrea Esquer, Goddard said this morning, “The Attorney General's Office will cooperate fully with the Maricopa County Sheriff's office in this matter. The information related to this transaction [the payment] is a matter of public record.”
She added that Goddard was not aware of the investigation until contacted by Arizona Capitol Times.
Don Dybus, who was employed as a part-time special assistant at the treasury for what he described as an assignment to prepare the office for the next treasurer, negotiated the payment because Petersen recused himself from the matter.
Before Dybus’ employment, then-Chief Deputy Treasurer Blaine Vance refused to send the money without written advice from the state solicitor general.
Petersen, however, later approved the payment, which was for the Attorney General’s work is obtaining a settlement in the National Century Financial Enterprises (NCFE) fraud case.
Petersen’s sentence was viewed skeptically by some, including then-treasurer candidate Dean Martin, who regarded it as a “slap on the wrist.”
But Goddard at the time defended the plea arrangement, saying the most important thing was to get Petersen to leave office. And after the payment was made, the Solicitor General’s Office, an independent arm of the Attorney General’s Office, issued an opinion that the Treasurer’s Office indeed owed the money.
The Arizona Republic at the time also questioned the independence of the Solicitor General in an editorial.
“The solicitor general is appointed by Attorney General Terry Goddard. The decision to proceed with the payment should have been ratified by an outside, truly independent legal counsel. It wasn’t,” the editorial stated. “The intense push by Petersen and his part-time enforcer, Dybus, to overrule Vance and get the check to the attorney general smells of an effort to curry favor with Goddard, whose investigation of Petersen continues even now.”
Dybus has not responded to phone calls, but he told the Arizona Capitol Times in July that Petersen’s legal problems were never discussed when the payment negotiations were taking place.
Two hundred local Arizona governmental entities and many governments in other states invested in NCFE, which made loans to inner-city Medicare hospitals, before collapsing in 2002 in a fraud scandal involving $3 billion in losses to all investors, including the $131 million in Arizona.
Of that amount the state treasury lost $14.3 million. So far, $52 million has been recovered for Arizona.
The payment, made in June of 2006, was not disclosed to the Board of Investment, which oversees the state’s investment portfolio. The move angered board members, including Department of Administration Director Bill Bell, who asked why the state is required to pay 35 percent of its recovery in the NFCE case to the Attorney General’s Office.
He also questioned whether the board should have been informed since the recovered funds were tied to investments made by the Treasurer’s Office. Martin, the current state treasurer would not confirm or deny the investigation, but did acknowledge his office is providing materials requested by an attorney for Vance and Tony Malaj, Petersen’s former chief of staff
Malaj and Vance, who assisted the Attorney General in the Petersen investigation, have filed multi-million dollar claims against the state in a whistleblower case on grounds their cooperation would hurt their chances of future employment.
The Department of Administration, which handles such suits, did not respond to the claims within 60 days as mandated by state law. That means the two former employees are free to file civil lawsuits.
Arizona Capitol Times has requested documents under the open records law from DOA related to the claims.
The prospect of a county sheriff investigating an elected state official poses no problems regarding legal jurisdiction, Arpaio said.
“The sheriff is the chief law enforcement officer of this county,” he said. “I can investigate and lock up anybody, including the governor. Nobody is immune from the sheriff.”
-----------------
Contact Phil Riske at phil.riske@azcapitoltimes.com
Contact Christian Palmer at christian.palmer@azcapitoltimes.com
Breaking News
Treasurer's payment to Attorney General investigated
By Phil Riske and Christian Palmer, Arizona Capitol Times
The Maricopa County Sheriff’s Office is investigating whether a $1.9 million payment from the Treasurer’s Office to the Attorney General’s Office for legal expenses was made as part of a deal to secure leniency for former treasurer David Petersen.
The June payment was for work Attorney General Terry Goddard’s office had done in obtaining a settlement in 2002 in a fraud case that cost local governments and the state $131 million in bad investments. Several sources confirm with the Arizona Capitol Times that current and former Treasurer’s Office employees have been questioned recently regarding the circumstances surrounding the payment.
In October, Petersen pleaded guilty to a single misdemeanor charge for failing to disclose a $4,200 commission he received for selling teaching materials for a character education program.
Petersen, who was facing felony charges of theft, fraud and conflict of interest, resigned Nov. 30 as part of a deal reached with Goddard. At sentencing hearing in December he was also ordered to pay $4,500 in fines and put on supervised probation for three years.
Maricopa County Sheriff Joe Arpaio would neither confirm nor deny that an investigation is being conducted, but said his office, in tandem with the Maricopa County Attorney’s Office, is “very active” in efforts against corruption by public officials.
“We have got a lot of investigations,” he said, noting recent newspaper reports of an official inquiry into possible corruption surrounding the light-rail construction project.
Barnett Lotstein, a spokesman for Maricopa County Attorney Andrew Thomas, said he could not confirm or deny an investigation of the payment.
Through his press aide, Andrea Esquer, Goddard said this morning, “The Attorney General's Office will cooperate fully with the Maricopa County Sheriff's office in this matter. The information related to this transaction [the payment] is a matter of public record.”
She added that Goddard was not aware of the investigation until contacted by Arizona Capitol Times.
Don Dybus, who was employed as a part-time special assistant at the treasury for what he described as an assignment to prepare the office for the next treasurer, negotiated the payment because Petersen recused himself from the matter.
Before Dybus’ employment, then-Chief Deputy Treasurer Blaine Vance refused to send the money without written advice from the state solicitor general.
Petersen, however, later approved the payment, which was for the Attorney General’s work is obtaining a settlement in the National Century Financial Enterprises (NCFE) fraud case.
Petersen’s sentence was viewed skeptically by some, including then-treasurer candidate Dean Martin, who regarded it as a “slap on the wrist.”
But Goddard at the time defended the plea arrangement, saying the most important thing was to get Petersen to leave office. And after the payment was made, the Solicitor General’s Office, an independent arm of the Attorney General’s Office, issued an opinion that the Treasurer’s Office indeed owed the money.
The Arizona Republic at the time also questioned the independence of the Solicitor General in an editorial.
“The solicitor general is appointed by Attorney General Terry Goddard. The decision to proceed with the payment should have been ratified by an outside, truly independent legal counsel. It wasn’t,” the editorial stated. “The intense push by Petersen and his part-time enforcer, Dybus, to overrule Vance and get the check to the attorney general smells of an effort to curry favor with Goddard, whose investigation of Petersen continues even now.”
Dybus has not responded to phone calls, but he told the Arizona Capitol Times in July that Petersen’s legal problems were never discussed when the payment negotiations were taking place.
Two hundred local Arizona governmental entities and many governments in other states invested in NCFE, which made loans to inner-city Medicare hospitals, before collapsing in 2002 in a fraud scandal involving $3 billion in losses to all investors, including the $131 million in Arizona.
Of that amount the state treasury lost $14.3 million. So far, $52 million has been recovered for Arizona.
The payment, made in June of 2006, was not disclosed to the Board of Investment, which oversees the state’s investment portfolio. The move angered board members, including Department of Administration Director Bill Bell, who asked why the state is required to pay 35 percent of its recovery in the NFCE case to the Attorney General’s Office.
He also questioned whether the board should have been informed since the recovered funds were tied to investments made by the Treasurer’s Office. Martin, the current state treasurer would not confirm or deny the investigation, but did acknowledge his office is providing materials requested by an attorney for Vance and Tony Malaj, Petersen’s former chief of staff
Malaj and Vance, who assisted the Attorney General in the Petersen investigation, have filed multi-million dollar claims against the state in a whistleblower case on grounds their cooperation would hurt their chances of future employment.
The Department of Administration, which handles such suits, did not respond to the claims within 60 days as mandated by state law. That means the two former employees are free to file civil lawsuits.
Arizona Capitol Times has requested documents under the open records law from DOA related to the claims.
The prospect of a county sheriff investigating an elected state official poses no problems regarding legal jurisdiction, Arpaio said.
“The sheriff is the chief law enforcement officer of this county,” he said. “I can investigate and lock up anybody, including the governor. Nobody is immune from the sheriff.”
-----------------
Contact Phil Riske at phil.riske@azcapitoltimes.com
Contact Christian Palmer at christian.palmer@azcapitoltimes.com
The performance of both trustees for NCFE, J.P. Morgan Chase and Bank One Corp., has come under fire;
NOT ENOUGH!
This story has REALLY yet to be told!!!
Article Excerpt
The fall of National Century Financial Enterprises, which thoroughly rattled the asset-backed securities market in December, continues to reverberate. Moody's Investors Service has gone on the warpath over the role of ABS trustees in that scandal, and is threatening to downgrade hundreds of ABS...
existing and mortgage-backed bonds-a threat that has rankled some market players, who point a finger right back at the ratings agencies.
Sources attending the "ABS West" securitization industry conference in Phoenix, Arizona last week said that some attendees publicly berated Moody's analysts for, as one source reported, "terrorizing the market" with its new comments about trustees. (The performance of both trustees for NCFE, J.P. Morgan Chase and Bank One Corp., has come under fire; Moody's last week said it may downgrade some ABS in which trustees see their role as ceremonial rather than protective of investors.)...
This story has REALLY yet to be told!!!
Article Excerpt
The fall of National Century Financial Enterprises, which thoroughly rattled the asset-backed securities market in December, continues to reverberate. Moody's Investors Service has gone on the warpath over the role of ABS trustees in that scandal, and is threatening to downgrade hundreds of ABS...
existing and mortgage-backed bonds-a threat that has rankled some market players, who point a finger right back at the ratings agencies.
Sources attending the "ABS West" securitization industry conference in Phoenix, Arizona last week said that some attendees publicly berated Moody's analysts for, as one source reported, "terrorizing the market" with its new comments about trustees. (The performance of both trustees for NCFE, J.P. Morgan Chase and Bank One Corp., has come under fire; Moody's last week said it may downgrade some ABS in which trustees see their role as ceremonial rather than protective of investors.)...
DCHC and its partner company, NCFE, are headquartered in John McCain’s Arizona.
My take on this blog is that you don't know the HALF OF IT!!
See my blog :
http://biggerthanenron.blogspot.com
Tuesday, March 11, 2008
NCFE A PARTNER WITH DCHC (AN ARIZONA COMPANY) ?
The stage was being set for the November 2, 2002 NCFE bankruptcy and the subsequent massive losses of Medicaid funds by the state of Arizona long before the actual event. In the realm of my research, limited because of the secrecy surrounding it, I am seeing “John McCain,” more and more. Certainly, the repetition of his name in this documentation gives a probable answer to the question, “Why was Arizona the ONLY state entity to invest money in a company, called by the National Securities Commission, ‘the lender of last resort?’” And the question, “Why did NCFE maintain a headquarters in Phoenix, Arizona?’ (To be close to the source of the money, I guess…AHCCCS must have been just down the street…)
I diligently copy here a report by Lynne Speed:
Schiller Institute
Massive Corruption Scandal Erupts
Around DC General
“The Boys from Brazile”
March 18, 2002
Schiller Institute and La Rouche Proven Right Again
The announcement March 7 of avowed McCain Democrat Donna Brazile’s new post as enforcer for the Democratic Party, has put the spotlight on the question: “What really happened at the mid-2001 Arizona meetings among Senator John McCain (R.-Ariz.) and Democratic Senators Daschle and Leiberman?” What effect will the political alliance of Eleanor Holmes Norton’s Donna with McCain, have to do with Daschele’s abrupt withdrawal of his previous written pledge to defend D.C. General Hospital?
The present escalation of that scandal-ridden case has centered on the curious alliance of Donna with John, and has erupted in the same time-frame as the February 28 announcement of the resignation of Washington, D.C. Health Department Director Dr. Ivan Walks, a key flunky of the financial oligarchy’s corrupt operation to shut down the only full-service public hospital in the nation’s capitol.
Donna, the former chief of staff for Washington’s Congressional Delegate Eleanor Holmes Norton, is also former chief of staff of the 2000 Al Gore Election Committee, a sometime Gore-McCain go-between; and, is currently campaign finance reform lobbyist for Senator McCain. Donna, with her connections to McCain, had been a key port of the operation of her crony, Delegate Eleanor Holmes Norton, in the scheme to shut down the hospital.
Lyndon LaRouche, whose forces led the fight to save D.C. General Hospital last year, as part of a broader international effort to defend health care and the principle of the General Welfare, issued a statement on Feb. 25, 2002, three days before Walks walked: “Donna Brazile’s relationship to Senator John McCain,” said La Rouche, “is the keystone of an arch of corruption embracing all of the interests, including D.C. Mayor Tony Williams and Eleanor Holmes Norton, who colluded in a patently corrupt operation to shut down and loot the remain of the only public general hospital of the nation’s capitol. Whether the Arizona money involved in that swindle was directly associated with McCain or not, McCain’s association with Brazile, Norton and Williams is a feature of the scandal which could potentially, bring down not only McCain, but McCain’s crony Lieberman.
The scandal continues to mount, as an international fight has erupted around the stated
Agreement among Senators Daschle, Lott, and President Bush, to introduce “fair trade” policies into the marketing of steel, and possibly other categories of endangered vital industries of the USA. The question is: Is health care for the people, also an essential industry of our nation?
D. C. General and Enron
In the meantime, the connections between the D.C. General scandal and the Enron scandal are becoming more and more difficult to overlook. This connection is not new.
Last year’s Schiller Institute and La Rouche-led mobilizations in defense of the General Welfare, also focused, then, on stopping the energy deregulation and energy piracy associated with Enron and other privateers. LaRouche focused on the case of D.C. General, in battling the HMOs’ “shareholder values” drive to dismantle national health care and offer it up for looting in the same general manner as Enron had been looting the nation’s energy supplies; and that the steel industry, among others, were being similarly looted.
At that time, this mobilization catalyzed hundred of citizens to lobby their Congressmen and state official in Washington and locally, and it threatened to create in Congress and among state official (e.g., California), a reverse paradigm shift, reviving the FDR tradition. Suddenly, at the beginning of June that year, forces in the U.S. Congress were pressured into sinking the hopes of keeping a public, full-service general hospital alive in the capitol of the most powerful nation on this planet.
The McCain Factor
On May 30, 2001, South Dakota Democrat Tom Daschle, who had just become the Senate Majority leader, signed a petition supporting La Rouche’s drive to save D. C. Hospital, entitled, “It’s Time To Draw the Line: Saving D.C. General Is a Matter of International Importance.” This signing occurred during a large public gathering. Five other Congressmen had previously signed the petition, and Rep. John Conyers (D.-Mich.) had held a Congressional briefing on the “National Public Hospital Safety-Net Crisis,” which featured LaRouche national spokeswoman Debra Freeman and other speakers from the Coalition to Save D.C. General.
Suddenly, on June 1, 2001, Senators Daschle and McCain met in Arizona. That same day, Daschle sent a fax to the Schiller Institute, asked that his name be removed form the LaRouche statement supporting D.C. General Hospital. On or about this date, the pattern of evidence indicates, a dirty deal was struck in the establishment to “stay away from LaRouche,” and to betray any commitments to the General Welfare – resulting, among other things, in the closing of the hospital one month later.
Rep. Maxine Water (D.-Calif.) tacitly acknowledged this at a November 14, 2001 Congressional briefing on public health care when she stated: “And a lot of people shied away from the D.C. General issue because the LaRouche organization was at the forefront of trying to help us understand what was going on. We should all apologize. And I do now. I apologize because, you are right.”
It has recently come to light that D.C. Mayor Anthony Williams’ campaign has received $480,000 since last July, of which more than 20%, or $98,000, has come from Doctors Community Healthcare Corporation (DCHC), its, hospitals, its employees, and its affiliated businesses. Paul Tufts, CEO of DCHC, also recently made a $500,000 donation, the largest in its history, to the University of the District of Columbia. Tufts was also the sole out-of-area contributor to Eleanor Holmes Norton’s 2000 election campaign, donation the maximum contribution of $1,000.
And, all of this matters, because DCHC is the Arizona outfit which took over, privatized, and dismantled D.C. General Hospital as a result of the illegal shenanigans and manipulations involving second-and-third-tier flunkies of Eleanor Holmes Norton, Tony Williams, and the Congressionally mandated Financial Control Board. All of these forces were operating against the wishes of the medical community, the citizens, and the D.C. City Council. DCHC and its partner company, NCFE, are headquartered in John McCain’s Arizona. They are currently facing lawsuits for racketeering, embezzlement, and fraud in four separate jurisdictions.
What about fourth-tier flunky Ivan Walks, whose flagrant disregard for the truth and the well-being of Washington’s citizens, whose health he was charged with protecting, played an important role in this operation? On Dr. Walks’ watch, two postal workers died during the anthrax incidents last Fall; on his watch, there are at least 75 other individuals, to date, whose deaths may have been caused by their inability to obtain timely and adequate medical care, as a result of the closing of D.C. General Hospital.
Walks will perhaps be remembered best for his comment at a Public Benefit Corporation (D.C. General) Board meeting in July 200, where he callously remarked: “A couple of folks may exsanguinate (bleed to death) on their way to the Washington Hospital Center, if D.C. General is closed.”
Walks has walked, but the scandalous stench of the “Boys from Brazile” – Norton, McCain, and Lieberman – is an odor which will not quickly go away.
LaRouche commented: “It is never over until it’s over. The crass, corrupt, and fully intentional commitment to increase the death-rate among citizens and other residents of the nation’s capitol is a stink hovering around Capitol Hill that will simply not go away until a restoration of the citizens rights to the Constitutional protection of the General-Welfare principle is served, once again, as it was under the former Hill-Burton Law.”
See my blog :
http://biggerthanenron.blogspot.com
Tuesday, March 11, 2008
NCFE A PARTNER WITH DCHC (AN ARIZONA COMPANY) ?
The stage was being set for the November 2, 2002 NCFE bankruptcy and the subsequent massive losses of Medicaid funds by the state of Arizona long before the actual event. In the realm of my research, limited because of the secrecy surrounding it, I am seeing “John McCain,” more and more. Certainly, the repetition of his name in this documentation gives a probable answer to the question, “Why was Arizona the ONLY state entity to invest money in a company, called by the National Securities Commission, ‘the lender of last resort?’” And the question, “Why did NCFE maintain a headquarters in Phoenix, Arizona?’ (To be close to the source of the money, I guess…AHCCCS must have been just down the street…)
I diligently copy here a report by Lynne Speed:
Schiller Institute
Massive Corruption Scandal Erupts
Around DC General
“The Boys from Brazile”
March 18, 2002
Schiller Institute and La Rouche Proven Right Again
The announcement March 7 of avowed McCain Democrat Donna Brazile’s new post as enforcer for the Democratic Party, has put the spotlight on the question: “What really happened at the mid-2001 Arizona meetings among Senator John McCain (R.-Ariz.) and Democratic Senators Daschle and Leiberman?” What effect will the political alliance of Eleanor Holmes Norton’s Donna with McCain, have to do with Daschele’s abrupt withdrawal of his previous written pledge to defend D.C. General Hospital?
The present escalation of that scandal-ridden case has centered on the curious alliance of Donna with John, and has erupted in the same time-frame as the February 28 announcement of the resignation of Washington, D.C. Health Department Director Dr. Ivan Walks, a key flunky of the financial oligarchy’s corrupt operation to shut down the only full-service public hospital in the nation’s capitol.
Donna, the former chief of staff for Washington’s Congressional Delegate Eleanor Holmes Norton, is also former chief of staff of the 2000 Al Gore Election Committee, a sometime Gore-McCain go-between; and, is currently campaign finance reform lobbyist for Senator McCain. Donna, with her connections to McCain, had been a key port of the operation of her crony, Delegate Eleanor Holmes Norton, in the scheme to shut down the hospital.
Lyndon LaRouche, whose forces led the fight to save D.C. General Hospital last year, as part of a broader international effort to defend health care and the principle of the General Welfare, issued a statement on Feb. 25, 2002, three days before Walks walked: “Donna Brazile’s relationship to Senator John McCain,” said La Rouche, “is the keystone of an arch of corruption embracing all of the interests, including D.C. Mayor Tony Williams and Eleanor Holmes Norton, who colluded in a patently corrupt operation to shut down and loot the remain of the only public general hospital of the nation’s capitol. Whether the Arizona money involved in that swindle was directly associated with McCain or not, McCain’s association with Brazile, Norton and Williams is a feature of the scandal which could potentially, bring down not only McCain, but McCain’s crony Lieberman.
The scandal continues to mount, as an international fight has erupted around the stated
Agreement among Senators Daschle, Lott, and President Bush, to introduce “fair trade” policies into the marketing of steel, and possibly other categories of endangered vital industries of the USA. The question is: Is health care for the people, also an essential industry of our nation?
D. C. General and Enron
In the meantime, the connections between the D.C. General scandal and the Enron scandal are becoming more and more difficult to overlook. This connection is not new.
Last year’s Schiller Institute and La Rouche-led mobilizations in defense of the General Welfare, also focused, then, on stopping the energy deregulation and energy piracy associated with Enron and other privateers. LaRouche focused on the case of D.C. General, in battling the HMOs’ “shareholder values” drive to dismantle national health care and offer it up for looting in the same general manner as Enron had been looting the nation’s energy supplies; and that the steel industry, among others, were being similarly looted.
At that time, this mobilization catalyzed hundred of citizens to lobby their Congressmen and state official in Washington and locally, and it threatened to create in Congress and among state official (e.g., California), a reverse paradigm shift, reviving the FDR tradition. Suddenly, at the beginning of June that year, forces in the U.S. Congress were pressured into sinking the hopes of keeping a public, full-service general hospital alive in the capitol of the most powerful nation on this planet.
The McCain Factor
On May 30, 2001, South Dakota Democrat Tom Daschle, who had just become the Senate Majority leader, signed a petition supporting La Rouche’s drive to save D. C. Hospital, entitled, “It’s Time To Draw the Line: Saving D.C. General Is a Matter of International Importance.” This signing occurred during a large public gathering. Five other Congressmen had previously signed the petition, and Rep. John Conyers (D.-Mich.) had held a Congressional briefing on the “National Public Hospital Safety-Net Crisis,” which featured LaRouche national spokeswoman Debra Freeman and other speakers from the Coalition to Save D.C. General.
Suddenly, on June 1, 2001, Senators Daschle and McCain met in Arizona. That same day, Daschle sent a fax to the Schiller Institute, asked that his name be removed form the LaRouche statement supporting D.C. General Hospital. On or about this date, the pattern of evidence indicates, a dirty deal was struck in the establishment to “stay away from LaRouche,” and to betray any commitments to the General Welfare – resulting, among other things, in the closing of the hospital one month later.
Rep. Maxine Water (D.-Calif.) tacitly acknowledged this at a November 14, 2001 Congressional briefing on public health care when she stated: “And a lot of people shied away from the D.C. General issue because the LaRouche organization was at the forefront of trying to help us understand what was going on. We should all apologize. And I do now. I apologize because, you are right.”
It has recently come to light that D.C. Mayor Anthony Williams’ campaign has received $480,000 since last July, of which more than 20%, or $98,000, has come from Doctors Community Healthcare Corporation (DCHC), its, hospitals, its employees, and its affiliated businesses. Paul Tufts, CEO of DCHC, also recently made a $500,000 donation, the largest in its history, to the University of the District of Columbia. Tufts was also the sole out-of-area contributor to Eleanor Holmes Norton’s 2000 election campaign, donation the maximum contribution of $1,000.
And, all of this matters, because DCHC is the Arizona outfit which took over, privatized, and dismantled D.C. General Hospital as a result of the illegal shenanigans and manipulations involving second-and-third-tier flunkies of Eleanor Holmes Norton, Tony Williams, and the Congressionally mandated Financial Control Board. All of these forces were operating against the wishes of the medical community, the citizens, and the D.C. City Council. DCHC and its partner company, NCFE, are headquartered in John McCain’s Arizona. They are currently facing lawsuits for racketeering, embezzlement, and fraud in four separate jurisdictions.
What about fourth-tier flunky Ivan Walks, whose flagrant disregard for the truth and the well-being of Washington’s citizens, whose health he was charged with protecting, played an important role in this operation? On Dr. Walks’ watch, two postal workers died during the anthrax incidents last Fall; on his watch, there are at least 75 other individuals, to date, whose deaths may have been caused by their inability to obtain timely and adequate medical care, as a result of the closing of D.C. General Hospital.
Walks will perhaps be remembered best for his comment at a Public Benefit Corporation (D.C. General) Board meeting in July 200, where he callously remarked: “A couple of folks may exsanguinate (bleed to death) on their way to the Washington Hospital Center, if D.C. General is closed.”
Walks has walked, but the scandalous stench of the “Boys from Brazile” – Norton, McCain, and Lieberman – is an odor which will not quickly go away.
LaRouche commented: “It is never over until it’s over. The crass, corrupt, and fully intentional commitment to increase the death-rate among citizens and other residents of the nation’s capitol is a stink hovering around Capitol Hill that will simply not go away until a restoration of the citizens rights to the Constitutional protection of the General-Welfare principle is served, once again, as it was under the former Hill-Burton Law.”
Thursday, August 14, 2008
Can't make a connection with NCFE?
The Wall Street Journal: What prompted this book?
T. Boone Pickens: I felt like a lot had happened to me. I left Mesa [Petroleum] in 1996 and the 12 years that followed were the most productive years of my life. Also, I came from a small town in eastern Oklahoma, and I think that I can still reach a young audience who want to know that average intelligence and a good work ethic is all you need.
WSJ: You were in effect fired as CEO of Mesa Petroleum by Richard Rainwater and his wife Darla Moore in 1996. In this book, you settle scores with them, adding the occasional shot to the ribs. What about forgetting and forgiving?
Mr. Pickens: If somebody I don't like gets in the crosshairs, I pull the trigger. But I don't hunt for them. The reason for paying them back is that they couldn't make a professional transition. You want your departure after 40 years to be pleasant, not unpleasant. They did things that were totally unnecessary, so that's why I said what I said.
I wonder what else T. Boone Pickens knows regarding these two and their Financial Investment Firms and our HEALTHCARE SYSTEM. Hmmm......
T. Boone Pickens: I felt like a lot had happened to me. I left Mesa [Petroleum] in 1996 and the 12 years that followed were the most productive years of my life. Also, I came from a small town in eastern Oklahoma, and I think that I can still reach a young audience who want to know that average intelligence and a good work ethic is all you need.
WSJ: You were in effect fired as CEO of Mesa Petroleum by Richard Rainwater and his wife Darla Moore in 1996. In this book, you settle scores with them, adding the occasional shot to the ribs. What about forgetting and forgiving?
Mr. Pickens: If somebody I don't like gets in the crosshairs, I pull the trigger. But I don't hunt for them. The reason for paying them back is that they couldn't make a professional transition. You want your departure after 40 years to be pleasant, not unpleasant. They did things that were totally unnecessary, so that's why I said what I said.
I wonder what else T. Boone Pickens knows regarding these two and their Financial Investment Firms and our HEALTHCARE SYSTEM. Hmmm......
Wednesday, August 13, 2008
Toughest Babe in the Business married GW BUSH Partner......
Below is an exerpt posted in this week's Newsweek : http://www.newsweek.com/id/151727/page/2
The Pickens Profile You Haven't Read
Pickens likes to portray his years as a corporate buccaneer during the 1980s as "shareholder activism." When Mesa fell into a cash crisis in the mid '90s after the price of natural gas collapsed, there was no mercy for him on Wall Street. Pickens called in Texas financier Richard Rainwater, and his wife and business partner, Darla Moore, to help raise capital. (Rainwater helped another oilman, George W. Bush, escape his money problems by making him co-owner of the Texas Rangers, a deal that eventually made Bush a multimillionaire.)
Moore, a leveraged-buyout specialist dubbed "the Toughest Babe in the Business" by Fortune, tried to raise $1 billion on Wall Street for Mesa. "I found out there wasn't a bank in the country that would touch the deal if Boone was CEO," Moore told NEWSWEEK. "I tried to soften the message [but] he was really surprised. 'But I get along with all those guys,' is what he said." The Rainwaters worked out a deal for Pickens to retire as CEO, and bought him out, a deal that still rankles the billionaire. Moore whooped with surprise when told by a NEWSWEEK reporter that Pickens had compared her in his book to a "wolverine that pisses on everything it doesn't eat." Moore responds, "I think what people don't know about Boone is that deep down he is actually—I hate to say this—a nice man. And he knows more about energy than anybody in the world."
Just a little insight to Darla Moore;
Darla Moore In 1981, at Chemical Bank in New York, Moore and Conway were focused on a new idea: loaning money to corporations
teetering on the brink of bankruptcy, Soon after, she met and married Rainwater, who made her president of his investment company. They now had $500 million to put wherever they wanted.That's when she pushed T. Boone Pickens out . . . and then to a hard look at Rick Scott.
Scott was Rainwater's good friend. They had bought two hospitals in Texas and shared a vision: a nationwide chain of hospitals using cost controls.
By 1997, Scott's company, Columbia/HCA, was the nation's largest managed care provider.
But Moore said Scott was unwise to ignore subordinates who questioned his practices and foolish to dismiss a federal investigation of how Columbia billed Medicare.
According to the SEC Form :
Med Diversified Inc.
Annual Meeting Of Stockholders
September 9, 2003
JAMES K. HAPP has served as chief executive officer of our subsidiary, Tender Loving Care Health Care Services, Inc., since October 2002.
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency. (1999-2002 by deduction of SEC statement)
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997. In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations (At least1997 until 1999)
Participated in the "DIVESTITURE"...Where did this divestiture 'divest' to?
The Pickens Profile You Haven't Read
Pickens likes to portray his years as a corporate buccaneer during the 1980s as "shareholder activism." When Mesa fell into a cash crisis in the mid '90s after the price of natural gas collapsed, there was no mercy for him on Wall Street. Pickens called in Texas financier Richard Rainwater, and his wife and business partner, Darla Moore, to help raise capital. (Rainwater helped another oilman, George W. Bush, escape his money problems by making him co-owner of the Texas Rangers, a deal that eventually made Bush a multimillionaire.)
Moore, a leveraged-buyout specialist dubbed "the Toughest Babe in the Business" by Fortune, tried to raise $1 billion on Wall Street for Mesa. "I found out there wasn't a bank in the country that would touch the deal if Boone was CEO," Moore told NEWSWEEK. "I tried to soften the message [but] he was really surprised. 'But I get along with all those guys,' is what he said." The Rainwaters worked out a deal for Pickens to retire as CEO, and bought him out, a deal that still rankles the billionaire. Moore whooped with surprise when told by a NEWSWEEK reporter that Pickens had compared her in his book to a "wolverine that pisses on everything it doesn't eat." Moore responds, "I think what people don't know about Boone is that deep down he is actually—I hate to say this—a nice man. And he knows more about energy than anybody in the world."
Just a little insight to Darla Moore;
Darla Moore In 1981, at Chemical Bank in New York, Moore and Conway were focused on a new idea: loaning money to corporations
teetering on the brink of bankruptcy, Soon after, she met and married Rainwater, who made her president of his investment company. They now had $500 million to put wherever they wanted.That's when she pushed T. Boone Pickens out . . . and then to a hard look at Rick Scott.
Scott was Rainwater's good friend. They had bought two hospitals in Texas and shared a vision: a nationwide chain of hospitals using cost controls.
By 1997, Scott's company, Columbia/HCA, was the nation's largest managed care provider.
But Moore said Scott was unwise to ignore subordinates who questioned his practices and foolish to dismiss a federal investigation of how Columbia billed Medicare.
According to the SEC Form :
Med Diversified Inc.
Annual Meeting Of Stockholders
September 9, 2003
JAMES K. HAPP has served as chief executive officer of our subsidiary, Tender Loving Care Health Care Services, Inc., since October 2002.
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency. (1999-2002 by deduction of SEC statement)
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc., a home care company with more than 500 locations nationwide and more than $1 billion in revenue in 1997. In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations (At least1997 until 1999)
Participated in the "DIVESTITURE"...Where did this divestiture 'divest' to?
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