A federal jury in Columbus, Ohio, convicted five former executives of National Century Financial Enterprises on all charges of conspiracy, fraud and money laundering in a 27-count indictment. They are: Donald Ayers, 71, an NCFE vice chairman, chief operating officer, director and owner; Rebecca Parrett, 59, an NCFE vice chairwoman, secretary, treasurer, director and owner; Randolph Speer, 58, a 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 charges are related to the 2002 collapse of NCFE several days after FBI agents raided its Dublin, Ohio, headquarters. Prosecutors said the fraud led to the bankruptcy of approximately 275 healthcare providers and cost investors more than $1.9 billion.
The defendants face the following maximum penalties, according to prosecutors: Ayers, 55 years in prison and $2.25 million in fines; Parrett, 75 years in prison and $2.5 million in fines; Speer, 140 years in prison and $4.25 million in fines; Faulkenberry, 85 years in prison and $2.5 million in fines; and Dierker, 65 years in prison and $1.75 million in fines. A sentencing date has not been scheduled.
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, former vice president of service 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