Reply #6: Healthcare fraud trial in Columbus, Ohio - Update [View All]

[DemReadingDU]

2/26/08 2 National Century execs weren't full participants in alleged fraud, witness says

At least two of the executives standing trial on criminal fraud charges in the $2.84 billion collapse of National Century Financial Enterprises Inc. weren't in on every aspect of the alleged scheme, a government witness acknowledged Tuesday.

Sherry Gibson, once National Century's executive vice president of compliance and the company insider the government has characterized as an architect of the massive fraud, conceded during cross-examination that James Dierker and Rebecca Parrett didn't know everything Gibson was doing to allegedly cook the company's books.

During the morning session, Gibson got pinned down by attorney Leonard Yelsky over whether Dierker authorized funds to be sent to a bankrupt National Century client. The government has alleged Dierker, vice president of marketing, illegally sent millions of dollars to a bankrupt California medical services provider owned by National Century executives out of NPF XII Inc., a bond fund that had raised money from investors.

National Century was ordered by a bankruptcy court to provide bankruptcy financing for California Psychiatric Management Services, but it wasn't allowed to use investor-raised funds. The company did anyway, and Dierker was in charge of overseeing those transfers, Gibson said.

more...
http://www.bizjournals.com/columbus/stories/2008/02/25/daily16.html

link to previous articles
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3198268&mesg_id=3198425