What were the consequences of the HealthSouth scandal?
What were the consequences of the HealthSouth scandal?
BIRMINGHAM, Ala., May 18 – The Justice Department announced Thursday that HealthSouth, the chain of outpatient rehabilitation hospitals, would pay $3 million and avoid prosecution over a giant accounting fraud discovered at the company three years ago.
Who was responsible for the HealthSouth scandal?
CEO Richard Scrushy
A Better Way to Do Ecommerce The infamous $2.8 billion accounting scandal at HealthSouth, which was perpetrated from 1996 through 2002, left a trail of misery in its wake. Included in the carnage was the imprisonment of CEO Richard Scrushy and several HealthSouth CFOs, among a number of other company officials.
How did the HealthSouth scandal happen?
Scrushy sold $75 million in stock several days before the company posted a large loss. HealthSouth was accused by the U.S. Securities and Exchange Commission (SEC) of an accounting scandal where the company’s earnings were falsely inflated by $1.4 billion.
What did Aaron Beam do that was not only unethical but illegal?
In 2003, after the Securities and Exchange Commission accused HealthSouth of falsely inflating earnings, Beam came forward. He pleaded guilty to bank fraud and gave evidence against his former boss, Richard Scrushy.
Who went to jail for HealthSouth?
Aaron Beam, the first chief financial officer of Birmingham, Ala. -based HealthSouth Corp., was sentenced to three months in jail today by a U.S. District judge in Birmingham. Beam was also fined $10,000 and ordered to forfeit $275,000.
What does Richard Scrushy do now?
After serving about five years of his sentence, Scrushy was released from prison. He now lives in Houston and works as a small-business consultant. In 2018, Watkins was indicted on federal fraud charges, for a multi-million dollar scheme that involved defrauding people such as former NBA star Charles Barkley.
Did Bill Owens go to jail?
Owens, who was among the first to blow the whistle and who testified against former chief executive Richard Scrushy, spent 43 months of a five-year sentence at the federal prison camp at Maxwell Air Force Base in Montgomery.
Who is Weston Smith HealthSouth?
As CFO at HealthSouth in 2003, Weston Smith was part of one of the country’s biggest fraud scandals. After becoming a whistleblower, Smith shares his story. Weston Smith says he lay awake late at night with his “entire life on rewind” one December night in 2005.