Scrushy slapped with fine, jail time
Healthcare Auditing Weekly, July 3, 2007
Former HealthSouth Corp. chief executive Richard Scrushy -- cleared in a landmark corporate fraud trial but convicted on unrelated federal bribery charges -- was sentenced last week to nearly seven years in prison, the Associated Press reports.
The term was imposed two years after Scrushy beat federal charges in Birmingham that he presided over a $2.6 billion accounting fraud at HealthSouth, a sweeping acquittal in sharp contrast to high-profile corporate convictions won against Enron Corp., WorldCom Inc. and Tyco International Ltd. executives.
However, in June 2006, Scrushy, 54, had been accused of paying former Alabama Gov. Don Siegelman $500,000 to obtain a seat on the state certificate-of-need board for a HealthSouth representative.
After the judge announced his decision, Scrushy left with U.S. marshals and was sent to the U.S. Penitentiary in Atlanta, which serves as a designation facility to determine where his sentence would be served.
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