Credit Suisse to face National Century fraud case - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

Credit Suisse to face National Century fraud case
Started:March 2nd, 2012 (10:12 PM) by kbit Views / Replies:180 / 0
Last Reply:March 2nd, 2012 (10:12 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Credit Suisse to face National Century fraud case

Old March 2nd, 2012, 10:12 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

Credit Suisse to face National Century fraud case

(Reuters) - A federal judge rejected Credit Suisse Group Inc's (VTX:CSGN) bid to dismiss a lawsuit by National Century Financial Enterprises bondholders that accused the Swiss bank of deceiving them about the health care finance company and missing its vast, roughly $2.9 billion fraud.

U.S. District Judge James Graham in Columbus, Ohio said the bondholders, who held nearly $2 billion of National Century debt, "have submitted sufficient evidence in support of their fraud-based claims" to allow the lawsuit to proceed.

While dismissing part of the case, the judge also rejected Credit Suisse's request to dismiss several groups of bondholder claims, including some raised by Lloyds TSB Bank Plc <48IY.L>, MetLife Inc (NYS:MET) and Allianz SE's (GER:ALV) Pimco unit.

"This ruling is important because it holds that an investment bank may be held liable for statements made in an issuer's offering documents," said Kathy Patrick, a lawyer who represents about two dozen of the bondholders including Pimco, Germany's BayernLB (FRA:BLPA) and Mutual of Omaha, in an interview.

Patrick said considerably more than half of the bondholder claims remain in the lawsuit. She expects the case to be sent to an Arizona federal court for a trial later this year.

Credit Suisse in a statement said it will continue its defense, and "remains confident that a jury will find based on all the evidence that it should not be held responsible for assisting or committing any wrongdoing."

Founded in 1990, privately held National Century provided financing to hundreds of clinics, hospitals and other services providers, and buying accounts receivable from such providers by using money obtained from the sale of notes to investors.

But according to the Justice Department, the Dublin, Ohio-based company misused investors' money, funneled corporate funds to company officials including co-founder and Chief Executive Lance Poulsen, and covered up its fraud by lying to investors and credit rating agencies.

National Century filed for bankruptcy protection in November 2002. A federal jury convicted Poulsen in October 2008 of fraud, and he was sentenced five months later to 30 years in prison. Co-founders and Vice Chairmen Rebecca Parrett and Donald Ayers were sentenced to a respective 25 years and 15 years in prison.

The bondholders claimed that Credit Suisse sold National Century notes even though it knew or should have known about the company's fraud, and relied on offering materials that did not describe how National Century actually operated.

Graham did not rule on the merits of the case. Nonetheless, despite calling the noteholders "sophisticated investors," he found that "a sufficient disparity in access and knowledge existed to make the noteholders' reliance on Credit Suisse justifiable."

The case is In re: National Century Financial Enterprises Inc Investment Litigation, U.S. District Court, Southern District of Ohio, No. 03-01565.

Credit Suisse to face National Century fraud case - Yahoo! Finance

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > Credit Suisse to face National Century fraud case

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Credit Suisse Shares Fall on Surprise Fourth-Quarter Loss Quick Summary News and Current Events 0 February 9th, 2012 04:30 AM
Ex-Credit Suisse traders admit cooking subprime books kbit News and Current Events 0 February 1st, 2012 06:40 PM
Credit Suisse Warns of 'Last Days' For the Euro kbit News and Current Events 0 November 21st, 2011 01:58 PM
Credit Suisse Cuts 1,500 More Jobs; Posts Weak Profits Quick Summary News and Current Events 0 November 1st, 2011 04:50 AM
If US Defaults, Stocks Fall 30%, GDP 5%: Credit Suisse Quick Summary News and Current Events 0 July 28th, 2011 06:30 AM

All times are GMT -4. The time now is 08:06 PM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-23 in 0.07 seconds with 19 queries on phoenix via your IP