Lance Poulsen, former president of the defunct National Century Financial Enterprises, was convicted on a dozen counts in a $1.9 billion fraud trial.
A federal jury in Columbus, Ohio, deliberated on the charges of conspiracy, fraud and money laundering for four hours before finding Poulsen guilty on all counts. The trial began Oct. 1.
Sentencing has not been set for Poulsen, 65, also former chairman and director of the failed Dublin, Ohio-based NCFE. The company, 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 accounts, prosecutors said, and National Centurys owners had direct or indirect interest in some risky providers.
Poulsens attorneys said they will appeal. We were obviously disappointed by the verdict, said Pete Anderson, one of Poulsens lawyers.
The judge wrongly allowed jurors to hear about Poulsens prior conviction for witness tampering and obstruction of justice in a related case, he said.
Anderson argued that the jury may have been unfairly swayed by the prior verdict and information about other previously convicted former National Century executives.
Five former NCFE executives were found guilty in March and four were sentenced to jail time and ordered pay back more than $2.4 billion by U.S. District Judge Algenon Marbley in August.
Poulsen and others made millions of dollars in unsecured loans to companies they owned, said U.S. Attorney Gregory Lockhart, in a news release. Their actions were designed to hide a financial house of cards from investors, eventually costing investors $2 billion. -- by Melanie Evans