 |
BUSINESSMore charges against ex-HealthSouth chiefA revised indictment of Richard Scrushy comes as another court ruling allows longer sentences for those convicted in connection with the firm's accounting scandal.By Katherine Vogt, AMNews staff. Oct. 18, 2004. Ousted HealthSouth leader Richard M. Scrushy faces additional charges of perjury and obstruction of justice in the government's investigation of a major accounting scandal at the outpatient services giant. A federal grand jury in Birmingham, Ala., returned a 58-count revised indictment against Scrushy that consolidates some of the previous charges he faced while adding the new ones, prosecutors said. Scrushy's original indictment, returned in November 2003, listed 85 counts. Scrushy, fired last year as HealthSouth's CEO, was arraigned on the new indictment in U.S. District Court in Birmingham on Sept. 29. He told U.S. Magistrate Judge T. Michael Putnam that he was "absolutely not guilty" of the charges, according to a statement posted on his Web site (www.richardmscrushy.com). Prosecutors allege Scrushy was the mastermind of a $2.6 billion accounting fraud at HealthSouth aimed at boosting earnings to meet Wall Street expectations. Nineteen people, including several former top executives, have faced criminal charges in connection with the scandal since it surfaced in March 2003. Seventeen of them have entered guilty pleas. The new charges against Scrushy -- three counts of perjury and one of obstruction of justice -- stem from an investigation into HealthSouth's finances by the U.S. Securities and Exchange Commission. Prosecutors allege that Scrushy knowingly gave false answers when he testified about the truth and accuracy of a HealthSouth financial report in 2001. They also say he later met with other HealthSouth officials to talk about the SEC's investigation and attempted to "corruptly persuade" one to influence his testimony in the proceedings. [...]Full text of AMNews content is available to AMA members and paid subscribers.
Copyright 2004 American Medical Association. All rights reserved.
|
|
Feature articlesRunning out of patches Options for fixing the Medicare pay crisis Illness interrupts book excerpt: Life in the Balance Taking it to the bank A new strategy for health plans Allergic reaction Food allergies increasing, especially among children Comprehensive coverage
Most-viewedJan. 5 issuePressure builds for further slashes to Medicare Advantage spending Medical centers reveal doctors' industry pay Columns and series
From the vault: 5 years agoAMA vows united voice in battle for tort reform Jan. 5, 2004 |
