National Century chief guilty

Lance Poulsen, former chief executive of National Century Financial Enterprises Inc., was convicted Friday of defrauding investors of $2.9 billion before his healthcare financing company collapsed in 2002.

A federal jury in Columbus, Ohio, found Poulsen guilty of fraud, conspiracy and money laundering. Poulsen, 65, cheated investors who bought National Century bonds to back the purchase of unpaid insurance bills from medical providers that needed cash, prosecutors said. The company advanced $2.2 billion to six companies in which Poulsen owned stakes, they said.

National Century’s collapse hastened the bankruptcies of 275 hospitals and other healthcare providers, authorities say. The victims included Pacific Investment Management Co., the world’s largest bond fund manager. Newport Beach-based Pimco lost $283 million and Credit Suisse Group lost $257 million, prosecutors said.

Poulsen, who founded the Ohio firm, faces 30 years to life in prison. He already is serving 10 years after being convicted in March of trying to bribe the main witness against him. Six National Century executives have been convicted, as well as four who pleaded guilty.