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Former National Century Executives in Court

Seven former executives of a bankrupt Dublin firm are to be arraigned Friday morning in federal district court in Columbus. They face charges include conspiracy, securities fraud and money laundering. They're accused of participating in a $3 billion accounting scheme at the now-defunct National Century Financial Enterprises.

Defendants Lance Poulsen, Rebecca Parrett, Donald Ayers, Roger Faulkenberry, Jon Beacham, James Dierker and Randolph Speer will appear in U.S. District Court to answer charges to a 60 count indictment that was released May 22nd.

Their company, National Century Financial Enterprises, collapsed in 2002 after the FBI raided the firm's Dublin offices and removed its records. NCFE once billed itself as the nation's largest supplier of working capital to the medical industry. The company bought bills from health care providers who were awaiting insurance or government reimbursement. NCFE allegedly financed the purchases by selling securities to large investors. One of the investors, the State of Arizona.

"We'll let the federal government and criminal prosecutions do their thing. We're just looking to recover our funds," says Blaine Vance.

Vance is Arizona's assistant state treasurer. He says the state and Arizona cities and towns lost somewhere around $150 million.

"We recover more and more every day but about 17 cents on the dollar came from the bankruptcy, the rest is coming through civil litigations," Vance says.

More than 200 health care providers went bankrupt after the National Century collapse. The indictment alleges the executives transferred funds from account to account to conceal cash shortages from investors and trustees. Several of the defendants' attorneys say they welcome the opportunity to present their cases in court. The case will be heard before US district judge Algenon Marbley. Three lower ranking executives have already pleaded guilty.