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Records Sought From Ex-CEO of HealthSouth

A House panel gives Richard Scrushy until June 25 to surrender documents on the company's finances.

June 12, 2003|From Associated Press

A congressional panel reviewing claims of a $2.5-billion accounting fraud at HealthSouth Corp. told fired Chief Executive Richard Scrushy on Wednesday to turn over records on the medical services giant.

The House Energy and Commerce Committee gave Scrushy until June 25 to surrender any documents he has relating to the Birmingham, Ala.-based company's accounting practices, finances and personnel.

It also requested any information Scrushy has about HealthSouth and its relationships with Ernst & Young, its former auditor; or UBS Warburg, its investment banking firm.

A spokesman said the committee would subpoena the records if Scrushy fails to comply.

Scrushy's attorney, Thomas Sjoblom, said his client didn't have any such records. He said the only documents about fraud were those Scrushy received from the Securities and Exchange Commission when it filed suit alleging fraud.

"We haven't got anything to give the committee other than what the SEC gave us," he said.

Scrushy's lawyers previously have accused the SEC and the Justice Department of illegally ganging up on Scrushy, who has denied any wrongdoing.

Rep. James C. Greenwood (R-Pa.), chairman of the panel's oversight and investigations subcommittee, said interviews with current senior officers of HealthSouth showed Scrushy "had intimate knowledge about all aspects of the company's finances."

The panel specifically asked for any documents Scrushy kept at offices away from corporate headquarters.

Committee spokesman Ken Johnson said the records request was intended to set the stage for a hearing this summer on the HealthSouth scandal.

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