Credit Suisse Group Inc. lost its bid to be tried separately from convicted National Century Financial Enterprises Inc. co-founder Lance Poulsen in an upcoming $2 billion civil trial over fraud at the healthcare financier a decade ago, Reuters reported yesterday. The decision by U.S. District Judge James Graham means that more evidence harmful to the Swiss bank's defense against bondholders could be introduced at the trial, which is scheduled to begin on April 1. Credit Suisse was sued for fraud and conspiracy by the state of Arizona, AllianceBernstein Holding LP, Lloyds TSB Bank Plc, MetLife Inc., Allianz SE's Pimco unit and other investors that bought National Century notes from 1998 to 2002. These investors said that Credit Suisse sold the notes and defended their creditworthiness despite knowing that National Century misused investor funds and also missed red flags that Poulsen had been masterminding a $2.9 billion fraud. National Century had helped finance clinics, hospitals and other service providers and bought accounts receivable from them with money it got by selling notes to investors. But the Dublin, Ohio-based company filed for bankruptcy protection in November 2002, and several executives were later convicted of crimes.
