HealthSouth CFO to pay $2.4 million for accounting scandal
Compliance Monitor, June 23, 2004
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A federal judge on June 19 sentenced a former HealthSouth Corp. chief financial officer to six months of house arrest and ordered him to pay more than $2.4 million for his part in the clinic chain's multibillion-dollar accounting scandal, according to an Associated Press report.
Michael Martin pleaded guilty to conspiracy to commit wire fraud and securities fraud, and falsifying financial information. He was ordered to forfeit $2.375 million and fined $50,000.
Martin, of Birmingham, AL, is one of more than a dozen HealthSouth executives to plead guilty and cooperate with the government. Federal officials say the company overstated earnings to meet Wall Street expectations.
Richard Scrushy, HealthSouth's founder and fired chief executive, is awaiting trial on charges that he made millions off a complex scheme to inflate HealthSouth earnings for years, AP reported. The company has said profits were overstated by as much as $4.6 billion.
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