Tuesday, March 31, 2009
Update On Massive Ohio Corporate Fraud Case: National Century's Paulsen Sentenced To 30 Years
Lance K. Poulsen, 65, the former founder and CEO of Dublin, Ohio-based National Century Financial Enterprises, was sentenced Friday to 30 years in prison for defrauding investors to the tune of $1.9 billion. He was also ordered to pay $2.38 billion in restitution. According to prosecutors, Poulsen fabricated data, transferred funds between accounts to hide shortfalls and misled the investors concerning the financial health of the company. One of Poulsen's accomplices, Rebecca S. Parrett, 60, was sentenced to 25 years in prison for her part in the scheme. She remains a fugitive. A third defendant, Karl A. Demmler, 57, one of the founders of National Century, was sentenced to 7 years in prison for his involvement in the fraud. Poulsen was originally found guilty last October on multiple counts of securities fraud, wire fraud and money laundering. National Century collapsed in 2002.