An executive of National Century Financial Enterprises Inc. will spend four years in jail for her role in the alleged fraud scheme that brought the company down, and more executives may be right behind her.
Sherry Gibson, a former executive vice president with the Dublin, Ohio-based health-care financing company, was sentenced by US District Court Judge George C. Smith yesterday to 48 months in jail after pleading guilty in August to one count of conspiracy to commit securities fraud.
National Century was a factoring company specialising in services to health care businesses. It raised money by selling bonds that were supposed to be backed by accounts receivable. But investigators say those bonds often were backed by inappropriate collateral such as artwork, or by nothing at all.
The company filed Chapter 11 bankruptcy protection in November of 2002, and a separate firm is liquidating its assets.
