2008 Woodie Awards
Health care executive found guilty of fraud
By: THE ASSOCIATED PRESS
Issue date: 3/27/08 Section: State
COLUMBUS - A federal jury yesterday convicted the founder of a failed health care company of trying to bribe a witness in an upcoming $1.9 billion fraud trial.
The jury took one day to deliver its decision against Lance Poulsen, former chief executive officer of National Century Financial Enterprises, described as the nation's largest health care financing firm before its 2002 bankruptcy.
Poulsen was accused of offering a former company executive $500,000 to give misleading testimony during Poulsen's fraud trial scheduled for August.
The executive, Sherry Gibson, told jurors that Karl Demmler, a long time friend to her and Poulsen, told her that Poulsen "wanted to make me whole."
The jury also convicted Demmler, who prosecutors had accused of acting as an intermediary for Poulsen to contact Gibson.
Poulsen said Gibson misunderstood his attempts to help her. He said he was only trying to provide her with a new attorney because he believed she'd been wrongly convicted based on bad legal advice.
Gibson pleaded guilty in 2003 for her role in the National Century fraud case in exchange for cooperating with prosecutors.
Poulsen and Demmler face up to 35 years in prison for their convictions on all counts of a four-count indictment alleging conspiracy, witness tampering and obstruction of justice.
U.S. District Judge Algenon Marbley ordered Demmler taken into custody. Poulsen has been held in a jail in Chillicothe.
On a phone call with Demmler recorded by the government, Poulsen said Gibson should explain that her previous statements to prosecutors were based on old facts.
Poulsen said Gibson should say, "But now, there is a new set of charges and it's a new indictment and I'm not familiar with it," Poulsen said on the recording.
In other recordings, Demmler suggests to Poulsen that Gibson could "have amnesia."
Prosecutors portrayed Gibson as a repentant ex-felon who'd served her time after pleading guilty to corporate fraud.
The jury took one day to deliver its decision against Lance Poulsen, former chief executive officer of National Century Financial Enterprises, described as the nation's largest health care financing firm before its 2002 bankruptcy.
Poulsen was accused of offering a former company executive $500,000 to give misleading testimony during Poulsen's fraud trial scheduled for August.
The executive, Sherry Gibson, told jurors that Karl Demmler, a long time friend to her and Poulsen, told her that Poulsen "wanted to make me whole."
The jury also convicted Demmler, who prosecutors had accused of acting as an intermediary for Poulsen to contact Gibson.
Poulsen said Gibson misunderstood his attempts to help her. He said he was only trying to provide her with a new attorney because he believed she'd been wrongly convicted based on bad legal advice.
Gibson pleaded guilty in 2003 for her role in the National Century fraud case in exchange for cooperating with prosecutors.
Poulsen and Demmler face up to 35 years in prison for their convictions on all counts of a four-count indictment alleging conspiracy, witness tampering and obstruction of justice.
U.S. District Judge Algenon Marbley ordered Demmler taken into custody. Poulsen has been held in a jail in Chillicothe.
On a phone call with Demmler recorded by the government, Poulsen said Gibson should explain that her previous statements to prosecutors were based on old facts.
Poulsen said Gibson should say, "But now, there is a new set of charges and it's a new indictment and I'm not familiar with it," Poulsen said on the recording.
In other recordings, Demmler suggests to Poulsen that Gibson could "have amnesia."
Prosecutors portrayed Gibson as a repentant ex-felon who'd served her time after pleading guilty to corporate fraud.
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