Donald Ayers, former vice chairman of National Century Financial Enterprises, who was convicted in March on eight counts of fraud and money laundering, was sentenced by a federal judge to 15 years in prison.
A second executive of the defunct Ohio-based healthcare lender, Randolph Speer, a former NCFE chief financial officer, was sentenced in U.S. District Court in Columbus, Ohio, to 12 years in prison by Judge Algenon Marbley. The judge ordered restitution from Ayers and Speer totaling $2.4 billion and forfeiture of another $1.8 billion. Other former NFCE executives yet to be sentenced could share in the restitution and forfeiture.
NCFE bought accounts receivable from providers and sold securitiesbonds or notesto investors to finance the deals. Prosecutors said the company paid unrealistic amounts for the receivables, which then became the shaky backing for its securities. The companys 2002 collapse led to the bankruptcy of about 275 healthcare providers.
Roger Faulkenberry, former NCFE director of securitizations, and James Dierker, former vice president of client development, are scheduled to be sentenced Aug. 7. In mid-July, Marbley pushed back to Oct. 1 the criminal trial of Lance Poulsen, former president chairman and director of NCFE. The move also delayed until December the trial of James Happ, NCFEs former vice president of servicer operations. Poulsen faces sentencing on Aug. 8 for witness tampering. -- by Melanie Evans