President – Organizing for America
Remember 1997? Balanced Budget Act of 1997- In 1997, HCA (Hospital Corporation of America) – was the LARGEST HOME HEALTH CARE Company in our country.
HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company)
Note: Hospital Corporation of America (HCA) was acquired by Columbia in 1994.
Columbia/HCA was a partnership of financier Richard Rainwater of Ft. Worth and lawyer Richard Scott.
Under the Balanced Budget Act of 1997- Home health - was struggling; about 1,400 agencies closed nationwide in 1998.
On Sept 8, 1998 Standard and Poors downgraded the bonds of Charter/HCA
Rainwater also owned a large stake in Magellan Health Care which controls Charter Medical. Magellan, run by Darla Moore, is the largest network of psychiatric hospitals in the country. They are becoming more and more involved in obtaining government money for services formerly not covered as health care, according to Fortune Magazine.
(Note: Rick Scott was terminated by Darla Moore, the wife of Richard Rainwater in 1997. According to Fortune Magazine, the “Toughest Babe in the Business”, Moore created the Corporate Bankruptcy Finance Tool- DIP- (Debtor in Possession), while employed at a Chase bank on Wall Street.
“They are becoming more and more involved in obtaining government money for services formerly not covered as health care, according to Fortune Magazine. “
2003-WWW.USDOJ.GOV - HCA INVESTIGATION - LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED
HCA not only robbed the country’s Medicare/Medicaid system, but the entire Healthcare system and its tentacles.
Connect- Healthcare Finance Fraud, SEC Fraud, Bankruptcy Fraud, Financial Fraud and Mortgage Fraud- all for ‘market driven healthcare’ in America?
2009 - The Wall Street Journal reported that Richard Scott, "the former chief executive of HCA Inc," had formed the non-profit organization Conservatives for Patients' Rights as part of a "lobbying campaign to derail or modify" President Obama's health care proposals,...
In 1997, Rick Scott was terminated by Darla Moore. As part of Richard Scott's severance package from Columbia he was paid $5.13 million and given a five year consulting contract at $950,000 per year.
1997 + 5 = 2002
In 2002 FBI raided the offices of National Century Financial Enterprises in Dublin, Ohio
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
In October 2008- Leo Wise, now at the OCE ---stated "Ladies and gentlemen, this is a case of staggering fraud," 'It is one of the largest frauds the FBI has ever investigated.
Guess where ALL of Richard Scott's & Richard Rainwater’s Columbia/ HCA and certain subsidiaries and joint ventures were?
National Century Financial Enterprises, Inc.! (NCFE).
One prosecutor stated ‘…’NCFE- the largest corporate fraud investigations involving a privately held company and no one has ever heard of.’
NO ONE HAS EVER HEARD OF? (The largest corporate fraud investigation…)
Why is that?
Richard Rainwater was GW Bush’s ex- partner with the Rangers.
October 2008, Leo Wise now at the OCE office prosecuted the CEO and co-founder of National Century Financial Enterprises - CEO Sentenced to 30 Years in Prison
12 Executives/co-Founders already found guilty-
December 18, 2008, almost one month before GW Bush leaves office- the last person to stand trial, the ONE and ONLY acquittal- James K Happ!
Jurors stated 'PROSECUTOR DID NOT DO HIS JOB'-
Prosecutors' case fell short juror says-National Century fraud case produces 1st and only acquittal The "not guilty" verdicts that came in federal court yesterday were not so much a vindication of the last National Century Financial Enterprises executive to stand trial, a juror said.
Instead, they were more a belief that federal prosecutors had not done their job, ...
"He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name...
While Richard Scott was at Columbia in 1997 - James K Happ was CFO of Columbia Homecare Group, Inc.
James K Happ, only acquittal at National Century Financial Enterprises, Inc‘s who just so happened to be the CFO of Columbia Homecare Group.
Showing posts with label SEC FRAUD. Show all posts
Showing posts with label SEC FRAUD. Show all posts
Wednesday, July 15, 2009
Thursday, May 28, 2009
Largest corporate fraud investigations
December 2008, are you aware of the largest private financial fraud case in our country's history?
National Century Financial Enterprises:
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
3/9/2006- 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors...
Just a reminder relating to the need for ‘healthcare financial service’ i.e. (NCFE) National Century Financial Enterprises; home health - which was struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.
Guess one of the publicly traded healthcare companies that were involved in this ‘private’ financial institution that was used for the divestiture of the losing assets of the home healthcare units?
On Sept 8, 1998 Standard and Poors downgraded the bonds of Charter/HCA to negative bases on poor earnings. Looks like Rainwater and his Crescent Cos' have finally stumbled.
Columbia just decided to sell its home health-care business and its head announced she is forming a company of her own. The home care unit is valued at $ 450 million. At least two other top executives of Columbia have resigned.
March 26, 2008
By Jodi Andes
THE COLUMBUS DISPATCH
Nine other executives have been convicted or pleaded guilty in National Century's collapse. Only Poulsen and executive James Happ still await trial.
Only Poulsen and executive James Happ still await trial?
December 18, 2008 - The ONE AND ONLY acquittal; James K Happ!
By Jodi Andes
THE COLUMBUS DISPATCH
Prosecutors' case fell short, juror says ….Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
Who was James K Happ?
SEC Form September 9, 2003 Annual Meeting of Stockholders, Med Diversified Inc.:
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency.
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc.,
… In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations
Who purchased the majority of this divestiture in late ’98 & early ’99?
Medshares, Inc. of Memphis, Tennessee
Who financed this divestiture?
National Century Financial Enterprises, Inc.
Sherry Gibson pleaded guilty in 2003 to a lesser charge of securities fraud in exchange for helping prosecutors. Gibson told jurors she told investors "absolutely nothing" about National Century's practices of advancing cash to Memphis, Tenn.-based Medshares, a home-health care provider… July 30, 1999
1999- Who filed the largest corporate bankruptcy in the Western Tennessee Federal Bankrutpcy Court?
Medshares, Inc. of Memphis, Tennessee
National Century Financial Enterprises:
“This case is one of the largest corporate fraud investigations involving a privately held company headquartered in small town America,” said Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division.
3/9/2006- 10-K SEC Filing, filed by J P MORGAN CHASE & CO on 3/9/2006: Enron litigation. JPMorgan Chase and certain of its officers and directors are involved in a number of lawsuits arising out of its banking relationships with Enron Corp.; the three current or former Firm employees are sued in their roles as former members of NCFE's board of directors...
Just a reminder relating to the need for ‘healthcare financial service’ i.e. (NCFE) National Century Financial Enterprises; home health - which was struggling under the Balanced Budget Act of 1997; about 1,400 agencies closed nationwide in 1998.
Guess one of the publicly traded healthcare companies that were involved in this ‘private’ financial institution that was used for the divestiture of the losing assets of the home healthcare units?
On Sept 8, 1998 Standard and Poors downgraded the bonds of Charter/HCA to negative bases on poor earnings. Looks like Rainwater and his Crescent Cos' have finally stumbled.
Columbia just decided to sell its home health-care business and its head announced she is forming a company of her own. The home care unit is valued at $ 450 million. At least two other top executives of Columbia have resigned.
March 26, 2008
By Jodi Andes
THE COLUMBUS DISPATCH
Nine other executives have been convicted or pleaded guilty in National Century's collapse. Only Poulsen and executive James Happ still await trial.
Only Poulsen and executive James Happ still await trial?
December 18, 2008 - The ONE AND ONLY acquittal; James K Happ!
By Jodi Andes
THE COLUMBUS DISPATCH
Prosecutors' case fell short, juror says ….Instead, they were more a belief that federal prosecutors had not done their job, the juror said after he and his fellow jurors acquitted James K. Happ of five counts after 12 hours of deliberation. "He very well may have been guilty. A lot of us thought he was," said the juror who wouldn't give his name. "But if he was, you gotta have the evidence."
Who was James K Happ?
SEC Form September 9, 2003 Annual Meeting of Stockholders, Med Diversified Inc.:
Previously, Mr. Happ served for three years as executive vice president of NCFE, during which time he restructured the servicer department to improve operational performance and accelerated the utilization of technology to increase operational efficiency.
Mr. Happ also served as chief financial officer of the Dallas-based Columbia Homecare Group, Inc.,
… In this role, he directed the company through the challenging reimbursement climate, known as the interim payment system, and participated in the divestiture of all of Columbia/HCA's home care operations
Who purchased the majority of this divestiture in late ’98 & early ’99?
Medshares, Inc. of Memphis, Tennessee
Who financed this divestiture?
National Century Financial Enterprises, Inc.
Sherry Gibson pleaded guilty in 2003 to a lesser charge of securities fraud in exchange for helping prosecutors. Gibson told jurors she told investors "absolutely nothing" about National Century's practices of advancing cash to Memphis, Tenn.-based Medshares, a home-health care provider… July 30, 1999
1999- Who filed the largest corporate bankruptcy in the Western Tennessee Federal Bankrutpcy Court?
Medshares, Inc. of Memphis, Tennessee
Tuesday, May 27, 2008
$58 Million Settlement Over Vioxx ....Peanuts!!!
Merck Agrees To $58 Million Settlement Over Vioxx Ad Claims
North Carolina will get $1.8 million from the settlement.
Harrisburg, PA -- Merck & Co. has agreed to pay $58 million as part of a multistate settlement of allegations that its ads for the once-popular painkiller Vioxx deceptively played down the health risks.
The agreement announced Tuesday also calls for Merck to submit all new TV commercials for its drugs to the Food and Drug Administration for review before they can be aired.
The civil settlement ends a joint three-year investigation by 29 states, including North Carolina, and the District of Columbia into Merck's advertising practices involving Vioxx, Pennsylvania Attorney General Tom Corbett said.
Vioxx was taken off the market in 2004 after research showed it doubled the risk of heart attacks and strokes. That triggered thousands of lawsuits against Whitehouse Station, N.J.-based Merck. A pending $4.85 billion settlement would end the bulk of those personal injury suits.
Thanks to aggressive marketing through direct-to-consumer television ads begun in 1999, hundreds of thousands of consumers demanded Vioxx prescriptions before doctors had a chance to understand the side effects, Corbett said.
"Consumers need clear information about the risks associated with prescription drugs so that they can make well-informed decisions about their health care," Corbett said.
The FDA does not require drug companies to submit advertisements for advance approval except in cases where it has pursued enforcement actions over false and misleading claims, agency spokeswoman Rita Chappelle said.
The agreement calls for Merck to submit all new TV commercials for its drugs to the FDA for review and follow through with any changes the agency recommends before airing them for seven years. Additionally, for a 10-year period Merck must comply with any FDA recommendations to delay television advertising for newly approved pain medications.
Merck is also prohibited from "ghostwriting," a practice in which people who worked for the company or were otherwise connected to it allegedly wrote positive articles and studies about Vioxx, Corbett said.
Merck is not admitting any wrongdoing under the settlement and defended its marketing of Vioxx in a statement Tuesday.
"Today's agreement enables Merck to put this matter behind us and focus on what Merck does best, developing new medicines," said Bruce Kuhlik, Merck's executive vice president and general counsel.
Corbett's spokesman, Kevin Harley, said the settlement does not require approval by any court.
Democrats in Congress have intensified their scrutiny of the drug industry, expressing support for tighter regulation of consumer-directed drug advertisements, among other things.
Last year, they tried unsuccessfully to pass a law that would ban such advertisements in the three years after a drug's approval. They are expected to make a similar push later this year.
Most of the settlement cost will be covered by a $55 million pretax charge that Merck said it took in the first quarter. Pennsylvania officials could not immediately provide a breakdown of how the $58 million will be divided.
In February, Merck agreed to pay $671 million to settle claims it overcharged the government for Vioxx and three other popular drugs and bribed doctors to prescribe its drugs. The announcement by federal prosecutors was one of the biggest U.S. health care fraud settlements ever.
In addition to Pennsylvania, the states included in Tuesday's settlement are Arkansas, Arizona, California, Connecticut, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Texas, Vermont, Washington and Wisconsin.
Merck shares fell 26 cents to $39.76 in afternoon trading Tuesday.
Source: Associated Press
Copyright: 2008 digtriad.com
North Carolina will get $1.8 million from the settlement.
Harrisburg, PA -- Merck & Co. has agreed to pay $58 million as part of a multistate settlement of allegations that its ads for the once-popular painkiller Vioxx deceptively played down the health risks.
The agreement announced Tuesday also calls for Merck to submit all new TV commercials for its drugs to the Food and Drug Administration for review before they can be aired.
The civil settlement ends a joint three-year investigation by 29 states, including North Carolina, and the District of Columbia into Merck's advertising practices involving Vioxx, Pennsylvania Attorney General Tom Corbett said.
Vioxx was taken off the market in 2004 after research showed it doubled the risk of heart attacks and strokes. That triggered thousands of lawsuits against Whitehouse Station, N.J.-based Merck. A pending $4.85 billion settlement would end the bulk of those personal injury suits.
Thanks to aggressive marketing through direct-to-consumer television ads begun in 1999, hundreds of thousands of consumers demanded Vioxx prescriptions before doctors had a chance to understand the side effects, Corbett said.
"Consumers need clear information about the risks associated with prescription drugs so that they can make well-informed decisions about their health care," Corbett said.
The FDA does not require drug companies to submit advertisements for advance approval except in cases where it has pursued enforcement actions over false and misleading claims, agency spokeswoman Rita Chappelle said.
The agreement calls for Merck to submit all new TV commercials for its drugs to the FDA for review and follow through with any changes the agency recommends before airing them for seven years. Additionally, for a 10-year period Merck must comply with any FDA recommendations to delay television advertising for newly approved pain medications.
Merck is also prohibited from "ghostwriting," a practice in which people who worked for the company or were otherwise connected to it allegedly wrote positive articles and studies about Vioxx, Corbett said.
Merck is not admitting any wrongdoing under the settlement and defended its marketing of Vioxx in a statement Tuesday.
"Today's agreement enables Merck to put this matter behind us and focus on what Merck does best, developing new medicines," said Bruce Kuhlik, Merck's executive vice president and general counsel.
Corbett's spokesman, Kevin Harley, said the settlement does not require approval by any court.
Democrats in Congress have intensified their scrutiny of the drug industry, expressing support for tighter regulation of consumer-directed drug advertisements, among other things.
Last year, they tried unsuccessfully to pass a law that would ban such advertisements in the three years after a drug's approval. They are expected to make a similar push later this year.
Most of the settlement cost will be covered by a $55 million pretax charge that Merck said it took in the first quarter. Pennsylvania officials could not immediately provide a breakdown of how the $58 million will be divided.
In February, Merck agreed to pay $671 million to settle claims it overcharged the government for Vioxx and three other popular drugs and bribed doctors to prescribe its drugs. The announcement by federal prosecutors was one of the biggest U.S. health care fraud settlements ever.
In addition to Pennsylvania, the states included in Tuesday's settlement are Arkansas, Arizona, California, Connecticut, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Texas, Vermont, Washington and Wisconsin.
Merck shares fell 26 cents to $39.76 in afternoon trading Tuesday.
Source: Associated Press
Copyright: 2008 digtriad.com
MORGAN STANLEY , Genesis Healthcare Corporation (
The FBI investigates matters relating to fraud, theft, or embezzlement occurring within or against the national and international financial community. These crimes are characterized by deceit, concealment, or violation of trust and are not dependent upon the application or threat of physical force or violence. Such acts are committed by individuals and organizations to obtain personal or business advantage. The FBI focuses its financial crimes investigations on such criminal activities as corporate fraud, securities and commodities fraud, health care fraud, financial institution fraud, mortgage fraud, insurance fraud, mass marketing fraud, and money laundering." This report covers the financial crimes that occurred between October 1, 2006, and September 30, 2007. It begins with an overview of the FBI's Financial Crimes Section, then focuses on each of the previously listed subcategories of financial fraud.
XUJIA WANG, VICE PRESIDENT OF FINANCE - MORGAN STANLEY (NEW YORK): This investigation was initiated on the basis of regulatory reporting related to suspicious options trading activity in Genesis Healthcare Corporation (GHC) immediately preceding the acquisition of GHC by private equity firms. Through her employment as Vice President of Finance for Morgan Stanley, Xujia Wang obtained material non-public information on GHC and other acquisitions, which she and her husband, Ruopian Chen, used to execute illicit trades in an account held in the name of a family member. On September 5, 2007, Wang and Chen pleaded guilty to charges of securities fraud and conspiracy to commit securities fraud for their roles in this insider trading scheme that resulted in illicit trading profits in excess of $600,000. On December 4, 2007, Wang and Chen were each sentenced to 18 months imprisonment and required to forfeit $611,248.
XUJIA WANG, VICE PRESIDENT OF FINANCE - MORGAN STANLEY (NEW YORK): This investigation was initiated on the basis of regulatory reporting related to suspicious options trading activity in Genesis Healthcare Corporation (GHC) immediately preceding the acquisition of GHC by private equity firms. Through her employment as Vice President of Finance for Morgan Stanley, Xujia Wang obtained material non-public information on GHC and other acquisitions, which she and her husband, Ruopian Chen, used to execute illicit trades in an account held in the name of a family member. On September 5, 2007, Wang and Chen pleaded guilty to charges of securities fraud and conspiracy to commit securities fraud for their roles in this insider trading scheme that resulted in illicit trading profits in excess of $600,000. On December 4, 2007, Wang and Chen were each sentenced to 18 months imprisonment and required to forfeit $611,248.
Monday, February 18, 2008
National Century investors lost more than $1.9 billion
Former National Century exec grilled about what he said, when he said it
Monday, February 11, 2008 9:38 PM
By Jodi Andes
THE COLUMBUS DISPATCH
The truthfulness of testimony by a former executive of National Century Financial Enterprises, considered a key witness for the prosecution, became an issue today in a trial of five other former company leaders accused of contributing to the downfall of the company.
Attorneys for some of those defendants talked today in U.S. District Court of seeking a mistrial.
National Century investors lost more than $1.9 billion when the company, which loaned money to health-care companies, collapsed in 2002. More than 275 health-care companies failed as a result, affecting thousands of workers and patients. The case is considered the largest case of fraud involving a private company.
Jon A. Beacham testified that he didn’t try to defraud investors while he was National Century’s vice president of securitizations. The division he led cultivated investors so that the company could loan money to health-care providers, such as hospitals and nursing homes, for a fee.
Beacham already has pleaded guilty to fraud and conspiracy to commit fraud, and is awaiting sentencing.
He and three other former executive, who also have admitted guilt, are key witnesses against Rebecca S. Parrett, Donald H. Ayers, Roger S. Faulkenberry, Randolph H. Speer and James E. Dierker. The five are charged with securities fraud, conspiracy and other counts. Each has pleaded not guilty.
On Friday, Beacham testified that the five executives on trial misled investors about the security of their investments.
That, though, is not what Beacham told FBI agents after his plea last year. At that time, Beacham never alleged the executives did anything wrong, defense attorneys said, pointing to a transcription of the interview.
And today, as defense attorney Javier Armengau questioned Beacham about the facts surrounding his own case, Beacham, on each point, said he did nothing wrong.
Assistant U.S. attorneys have agreed to recommend that Beacham’s prison term be cut in half as long as he proves to be of “substantial assistance.”
Four other defense attorneys took turns dissecting Beacham’s testimony and actions on the stand.
Beacham testified that he didn’t think he did anything wrong until 2006. From 2002 to 2006, he was occupied with his family, including the birth of his fourth child, he said.
However in 2006, a consultant hired by his attorney told him that securities law has a “strict liability,” which could hold him accountable if he knew investors were misled.
It was then, Beacham said, he decided to plead guilty.
By day’s end, three defense attorneys told District Judge Algenon L. Marbley they were looking into having Beacham’s testimony removed from the record or asking for a mistrial.
“Based upon his testimony that he didn’t commit a crime, how could there be a conspiracy,” asked attorney Fred Benton.
Marbley seemed to disagree.
“(Beacham) said he knowing gave false information and that he later learned that was criminal activity,” Marbley said.
jandes@dispatch.com
Monday, February 11, 2008 9:38 PM
By Jodi Andes
THE COLUMBUS DISPATCH
The truthfulness of testimony by a former executive of National Century Financial Enterprises, considered a key witness for the prosecution, became an issue today in a trial of five other former company leaders accused of contributing to the downfall of the company.
Attorneys for some of those defendants talked today in U.S. District Court of seeking a mistrial.
National Century investors lost more than $1.9 billion when the company, which loaned money to health-care companies, collapsed in 2002. More than 275 health-care companies failed as a result, affecting thousands of workers and patients. The case is considered the largest case of fraud involving a private company.
Jon A. Beacham testified that he didn’t try to defraud investors while he was National Century’s vice president of securitizations. The division he led cultivated investors so that the company could loan money to health-care providers, such as hospitals and nursing homes, for a fee.
Beacham already has pleaded guilty to fraud and conspiracy to commit fraud, and is awaiting sentencing.
He and three other former executive, who also have admitted guilt, are key witnesses against Rebecca S. Parrett, Donald H. Ayers, Roger S. Faulkenberry, Randolph H. Speer and James E. Dierker. The five are charged with securities fraud, conspiracy and other counts. Each has pleaded not guilty.
On Friday, Beacham testified that the five executives on trial misled investors about the security of their investments.
That, though, is not what Beacham told FBI agents after his plea last year. At that time, Beacham never alleged the executives did anything wrong, defense attorneys said, pointing to a transcription of the interview.
And today, as defense attorney Javier Armengau questioned Beacham about the facts surrounding his own case, Beacham, on each point, said he did nothing wrong.
Assistant U.S. attorneys have agreed to recommend that Beacham’s prison term be cut in half as long as he proves to be of “substantial assistance.”
Four other defense attorneys took turns dissecting Beacham’s testimony and actions on the stand.
Beacham testified that he didn’t think he did anything wrong until 2006. From 2002 to 2006, he was occupied with his family, including the birth of his fourth child, he said.
However in 2006, a consultant hired by his attorney told him that securities law has a “strict liability,” which could hold him accountable if he knew investors were misled.
It was then, Beacham said, he decided to plead guilty.
By day’s end, three defense attorneys told District Judge Algenon L. Marbley they were looking into having Beacham’s testimony removed from the record or asking for a mistrial.
“Based upon his testimony that he didn’t commit a crime, how could there be a conspiracy,” asked attorney Fred Benton.
Marbley seemed to disagree.
“(Beacham) said he knowing gave false information and that he later learned that was criminal activity,” Marbley said.
jandes@dispatch.com
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