You are on page 1of 6

INDEPTH: HEALTH

SOUTH STORY

. the health services company he founded. who was the former CEO of HealthSouth. the first CEO to face charges under the Sarbanes- Oxley Act. Richard Scrushy. He could have been sentenced to life if he had been convicted. issuing a false Richard Scrushy corporate report and making false statements to regulators. had been facing 36 counts of conspiracy. Scrushy.7- billion US fraud at HealthSouth Corp. . fraud. money laundering. was acquitted Tuesday of all charges relating to the $2.

.The Sarbanes-Oxley Act requires CEOs to certify the accuracy of the financial statements of their companies.

His trial began in January. Scrushy blamed the accounting wrongdoings entirely on his subordinates at HealthSouth. Ala. The five had all testified against Scrushy at the trial. .The verdict came after a month of jury deliberations in Birmingham. including the company's five chief financial officers who worked with Scrushy over the years.

. The company's current management said he won't be offered his old job back. no fewer than 15 HealthSouth executives have pleaded guilty. Scrushy was fired as CEO in March 2003.Since the scandal broke in 2003.

. It lost its NYSE stock listing and its stock price now hovers at barely a fifth of its previous value.000 people still work at the company. Scrushy be offered any position within the company by this management team or by this board of directors."Under no circumstances will Mr. About 41." The scandal drove HealthSouth close to bankruptcy.