Richard Scrushy HealthSouth Corporation Scandal
HealthSouth Corporation is based in Birmingham, Alabama, and is one of americas largest healthcare services providers.
The HealthSouth Corporation is perhaps Best known for its rehabilitation services. The HealthSouth Corporation has more than 1,900 facilities in the united states, Canada, Australia, and Puerto Rico including both in and outpatient rehabilitation facilities and surgery centers.
The HealthSouth Corporation owns more than 330 hospitals worldwide. In 2003,HealthSouth corporation's CEO Richard M. Scrushy, directed company employees to falsely report grossly exaggerated company earnings in order to meet stockholder expectations.
This Began what was latter to be termed the Richard Scrushy HealthSouth Corporation scandal.
In March, 2003 HealthSouth and its founder and CEO Richard M. Scrushy were investigated by the Securities Exchange Commission (SEC) of an accounting scandal in which the compnay's earnings were falsely inflated by $1.4 billion.
In 1986, the Richard Scrushy HealthSouth Corporation scandal began when Richard Scrushy instructed HealthSouth's senior officers and accountants to falsify company earning reports in order to meet investor expectations and control the price of the company's stock.
In some years the company's income was overstated by as much as 4700 percent. The inflated $1.4 billion represents more than 10 percent of the company's total assets.
In 2003 Richard Scrushy was accused of fraud by the Securities Exchange Commission (SEC) for directing HealthSouth's officers to falsify financial records. Scrushy is the first CEO to be charged under the 2002 Sarbanes-Oxley Act.
He was fired by HealthSouth's board in the wake of the Richard Scrushy HealthSouth Corporation scandal and many of his assets were seized by Federal investigators. He is currently standing trial on 36 counts of fraud and conspiracy.
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