Roger Faulkenberry and James Dierker, former executives with National Century Financial Enterprises, were sentenced to prison terms of 10 and 5 years, respectively,
by a federal district court judge in Columbus, Ohio.
Judge Algenon Marbley also ordered Dierker, formerly the NCFE vice president of client development from 1999 to 2000, to forfeit $47.6 million and to pay $7.85 million in restitution. He was the fourth former National Century executive to be sentenced this week. Earlier today, Marbley sentenced Roger Faulkenberry, director of securitization for the defunct healthcare lender from 1994 to 2000, to 10 years in prison.
On Aug. 6, Marbley handed down 15-year and 12-year prison terms for two other former NCFE executives, Donald Ayers and Randolph Speer, respectively. Ayers was the Dublin, Ohio-based companys vice chairman, chief operating officer, director and owner; and Speer was an NCFE chief financial officer.
NCFE, which collapsed in 2002, bought patients unpaid bills from providers and sold bonds or notes to investors to finance the deals. But the company paid providers unrealistic amounts for the unpaid bills, prosecutors said, and NCFEs owners had direct or indirect stakes in some risky providers.
In March, five of its former executives were convicted on charges of conspiracy, fraud and money laundering. The judge ordered restitution from Faulkenberry, Ayers and Speer of $2.4 billion and forfeiture of another $1.8 billion; other NCFE executives yet to be sentenced may share in the fines.
Lance Poulsen, former president, chairman and director of NCFE, faces sentencing Aug. 8 for witness tampering in a related case. Meanwhile, Poulsens criminal trial is scheduled for Oct. 1 and James Happ, the companys former vice president of servicer operations, is scheduled to go to trial in December.
Another former NCFE executive convicted in March, Rebecca Parrettwho had been a NCFE vice chairwoman, secretary, treasurer, director and ownerdid not show for a pretrial appointment and remains at large. -- by Melanie Evans