Tuesday, December 11, 2007

funded healthcare providers by purchasing their accounts receivable, then providing them with cash they could use to pay operating expenses immediatel

But ask yourself, who would these 'INVESTORS' be?

Former National Century Financial Enterprises Executive Pleads Guilty to Securities Fraud
Fri, 13 Jul 2007 09:00 AM - Dubai Time

WASHINGTON, July 13 /PRNewswire-USNewswire/ -- A former executive of National Century Financial Enterprises (NCFE) pleaded guilty to charges that he defrauded investors of billions of dollars, the Justice Department's Criminal Division and U.S. Attorney Gregory G. Lockhart of the Southern District of Ohio announced today.Jon A. Beacham, 40, of Grosse Pointe, Mich., pleaded guilty today before Magistrate Judge Terence P. Kemp of the Southern District of Ohio to charges contained in a superseding indictment returned on July 12, 2007, by a federal grand jury in Columbus, Ohio. Beacham, one of the eight defendants named in the superseding indictment, pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud, and one count of securities fraud. Beacham has also agreed to forfeit $330,000.Beacham was the director of securitizations at NCFE and was responsible for raising money from investors. NCFE, based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002. The company funded healthcare providers by purchasing their accounts receivable, then providing them with cash they could use to pay operating expenses immediately. NCFE raised funds by selling asset-backed notes to investors. Investors received regular interest payments and a lump-sum payment when the notes were retired.The superseding indictment alleges that between May 1998 and May 2001, the defendants sold notes to investors with an aggregate value of $4.4 billion. The indictment alleges that instead of investing the funds in the purchase of high quality accounts receivable as promised, the defendants diverted the funds to healthcare providers, many of whom they owned in whole or in part, creating shortfalls in account balances. The defendants allegedly fabricated
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data in investor reports, double-counted money by moving it back and forth between funds, made other false statements, and loaded false data into the accounting system in order to conceal the shortfalls.Beacham faces a maximum term of 10 years in prison and a maximum fine of $500,000.U.S. District Judge Algenon L. Marbley of the Southern District of Ohio will preside over the case of the seven remaining defendants, which is scheduled for trial on Nov. 5, 2007.This case is being investigated by agents and inspectors from the Federal Bureau of Investigation, U.S. Postal Inspection Service, IRS Criminal Investigation, and U.S. Immigration and Customs Enforcement. This case is being prosecuted by Assistant U.S. Attorneys Dale E. Williams Jr. and Doug Squires of the Southern District of Ohio, as well as Leo Wise and Jeffrey A. Neiman, of the Criminal Division's Fraud Section. U.S. Department of Justice

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