Lance Poulsen, former chief executive officer and chairman of healthcare lender National Century Financial Enterprises, was sentenced to 10 years in prison for witness tampering and obstruction of justice by a federal district court judge in Columbus, Ohio. The sentence and a $17,500 fine stem from his March conviction in a case related to Poulsens upcoming criminal trial for fraud.
Five other NCFE executives were convicted on charges of conspiracy, fraud and money laundering in March; four were sentenced this week by Judge Algenon Marbley. Roger Faulkenberry and James Dierker were sentenced to prison terms of 10 and 5 years, respectively. Marbley also ordered Dierker, formerly NCFE vice president of client development, to forfeit $47.6 million and to pay $7.85 million in restitution. Faulkenberry, formerly director of securitization for the defunct healthcare lender, was sentenced to 10 years in prison. Marbley handed down 15-year and 12-year prison terms for Donald Ayers and Randolph Speer, respectively. Ayers was the Dublin, Ohio-based company's vice chairman, chief operating officer, director and owner; and Speer was an NCFE chief financial officer.
The judge ordered restitution from Faulkenberry, Ayers and Speer of $2.4 billion and forfeiture of another $1.8 billion.
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 NCFE's owners had direct or indirect stakes in some risky providers.
Poulsens criminal trial is scheduled for Oct. 1. James Happ, the company's 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 an NCFE vice chairwoman, secretary, treasurer, director and ownerdid not show for a pretrial appointment and remains a fugitive. -- by Melanie Evans