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BUSINESS
December 16, 2005 | From Bloomberg News
HealthSouth Corp. founder Richard Scrushy, who was cleared of orchestrating a $2.7-billion fraud at the company, sued HealthSouth for $70 million that he said he was owed in severance pay and bonuses. The lawsuit filed in Jefferson County, Ala., says that under a 2002 employment agreement, Scrushy is entitled to the pay after being acquitted in June of accounting fraud charges, Scrushy spokesman Charlie Russell said. Scrushy was fired from the company in March 2003 and quit the board Dec.
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BUSINESS
December 10, 2005 | From Reuters
The main witness in the fraud case against the founder and former chief executive of HealthSouth Corp. was sentenced Friday to five years in prison for his part in the $2.7-billion scheme. William Owens, onetime chief financial officer of the rehabilitation and health services chain, secretly recorded conversations for the FBI and testified for 11 days against his former boss, Richard Scrushy. A federal jury acquitted Scrushy of all charges in June.
BUSINESS
December 1, 2005 | From Associated Press
The judge in the government's civil lawsuit over the huge earnings overstatement at HealthSouth Corp. threw out fraud claims against fired Chief Executive Richard Scrushy, who was previously acquitted on criminal charges in the scheme. U.S. District Judge Inge P. Johnson said the two fraud counts contained in the suit -- the third version of the case filed by the Securities and Exchange Commission -- weren't specific enough.
BUSINESS
November 19, 2005 | From Associated Press
A former HealthSouth Corp. executive was convicted of conspiracy and lying to auditors for his role in a $2.7-billion fraud at the rehabilitation chain. Hannibal "Sonny" Crumpler was only the second person to stand trial in the fraud. The first, fired Chief Executive Richard Scrushy, was acquitted in June. Besides 15 years' imprisonment and more than $1 million in fines, prosecutors are asking a court to order Crumpler to turn over $2.
BUSINESS
November 7, 2005 | From Associated Press
A former HealthSouth Corp. executive goes to court this week in the second trial linked to a massive fraud at the medical services chain, and both sides want to keep jurors from hearing much about the first trial's defendant, fired Chief Executive Richard Scrushy.
BUSINESS
October 29, 2005 | From Associated Press
Fired HealthSouth Corp. Chief Executive Richard Scrushy pleaded not guilty to charges accusing him of participating in a government corruption scheme. Scrushy said he was offered immunity if he would testify against former Alabama Gov. Don Siegelman. A federal grand jury Wednesday indicted Scrushy, Siegelman and two former members of Siegelman's Cabinet on government corruption charges. Scrushy faces two counts of bribery and one count of mail fraud.
BUSINESS
September 23, 2005 | From Reuters
Former HealthSouth Corp. finance chief Weston Smith, who blew the whistle on the accounting scandal that rocked the company, on Thursday was given 27 months in prison -- the stiffest sentence for any executive involved in the fraud. Smith, one of five former HealthSouth chief financial officers who pleaded guilty to fraud charges, was also ordered to forfeit $1.5 million in ill-gotten gains and will spend one year on probation after his release.
BUSINESS
August 19, 2005 | From Bloomberg News
A federal judge on Thursday rejected a request by HealthSouth Corp. founder Richard Scrushy to throw out a Securities and Exchange Commission lawsuit and instead told the agency to refile by Sept. 7. U.S. District Judge Inge Johnson issued the order after a closed-door conference in Birmingham, Ala. The SEC sued Scrushy in March 2003 after the discovery of a $2.7-billion accounting fraud at HealthSouth Corp., a major operator of rehabilitation hospitals.
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