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Copy of Richard Scrushy HealthSouth Corporation Scandal
Transcript of Copy of Richard Scrushy HealthSouth Corporation Scandal
HealthSouth Corporation Scandal
In March, 2003, FBI raided HealthSouth's office and took away document. A huge fraud scandal was raveled after that. Leading to investigation and lawsuits.
How Did Scrushy Get Caught?
On February 22,1984 in Birmingham, Alabama Amcare, Inc was found which would later become Health South
One of the largest providers of inpatient rehabilitative health care .
serves as an inpatient rehabilitative hospital,long-term acute care hospital output rehabilitation satellite clinic, and a home health agency.
Aids patients that are recovering from neurological disorders, orthopaedic,cardiac and pulmonary codition , spinal cord injuries, and amputations.
How They did it?
Since 1999 HealthSouth has been overstating earnings by $ 2.5 billion
In2003 CEO Richard Scrushy ordered employees to exaggerate and falsy report company earnings in order to meet stock holders expectations.
The dishonesty about the income was so immense they inflated it up to 4700 percent.
As a result between 1996 and 2002 the goverment estimated that HealthSouth collected $2.74 billion in phony profits.
Richard Scrushy alone colleted more than $265 million from his salary,bonus and stock sales.
Richard 25 years in prison and had to pay $ 2.9 billion.
Aaron Beam 3 month in prison and had to pay $ 3.5 in legal fees and fines.
Weston Smith serve 27 month in federal prison and had to pay 1.5 million dollars with 2 year of probation.
CEO and Chairman of Board Of Directors
Chif financial officer