Five former executives of the defunct National Century Financial Enterprises were found guilty on all counts, including conspiracy to commit securities and wire fraud and money laundering, by a jury in U.S. District Court in Columbus, Ohio. They are: Donald Ayers, former vice chairman and chief operating officer; Rebecca Parrett, former vice chairman, secretary and treasurer; Randolph Speer, former chief financial officer and executive vice president; Roger Faulkenberry, director of securitization from 1994 to 2000; and James Dierker, vice president of client development from 1999 until 2000.
The jury deliberated approximately 11 hours following a five-week trial.
The charges are related to the 2002 collapse of NCFE several days after FBI agents raided its Dublin, Ohio, headquarters.
NCFE purchased medical accounts receivable from providers who were typically in dire financial straits, raising the funds to purchase the accounts by selling asset-backed bonds or notes to investors that were AAA-rated, according to prosecutors. Prosecutors alleged that the fraud led to the bankruptcy of approximately 275 healthcare providers and cost investors more than $1.9 billion.
Four former NCFE executives had already pleaded guilty. Earlier this year, the case of Lance Poulsen, the former president, chairman and director of NCFE, and James Happ, vice president of servicer operations, were severed from the case and will be tried in August and October, respectively. Poulsen also faces charges of witness tampering at a separate trial expected to start next week. -- by Cinda Becker
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