A second official at National Century Financial Enterprises, Dublin, Ohio, has pleaded guilty to conspiracy to commit securities fraud. Brian Stucke, 33, the company's compliance director from July 1999 to July 2000, admitted to participating in sending false financial reports to bank trustees and rating agencies, according to documents filed in U. S. District Court, Columbus, Ohio. Separately, the Securities and Exchange Commission filed a civil enforcement action against Stucke. The SEC alleges that Stucke and other senior NCFE officials improperly "advanced" $1 billion in unauthorized, unsecured loans to distressed or defunct healthcare providers, many of which were partly or wholly owned by NCFE or its principals. Stucke faces up to five years in prison with no parole, a $250,000 fine and three years of supervision following release. His supervisor, Sherry Gibson, pleaded guilty to conspiracy in August and awaits sentencing. -- by Mary Chris Jaklevic
Another guilty plea in NCFE fraud probe
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