Advertisement
YOU ARE HERE: LAT HomeCollections

Ex-HealthSouth CFO Sentenced

September 13, 2006|From Reuters

BIRMINGHAM, Ala. — A federal judge Tuesday sentenced former HealthSouth Corp. Chief Financial Officer Michael Martin to 36 months in prison, marking the third time he has been sentenced for his part in a $2.7-billion accounting scandal that rocked the company.

Martin, one of five former HealthSouth CFOs who pleaded guilty to fraud charges in connection with the scandal, had previously paid a $50,000 fine and a $2.4-million forfeiture of ill-gotten gains.

He was originally sentenced to five months' probation and was later ordered to serve only seven days in prison.

Both of those sentences were overturned after U.S. prosecutors protested the lenient penalties and appealed the decisions.

Martin had pleaded guilty to securities fraud, conspiracy and other counts for his part in an accounting fraud that nearly brought down the Birmingham-based operator of rehabilitation hospitals and surgical centers.

"I only have myself to blame for where I am standing," a tearful Martin told the court and U.S. District Judge L. Scott Coogler.

He apologized to those who suffered as a result of the fraud, adding: "I committed a very serious crime and I am prepared to face the consequences."

Advertisement
Los Angeles Times Articles
|
|
|