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Sarbanes-Oxley News & Developments
Scrushy To Challenge SarboxFormer HealthSouth executive challenges punishment for those who sign phony financial reports..
> > Detailed as the Sarbanes-Oxley Act is, its framers could have been more specific in spelling out the punishments for chief executives and CFOs who sign phony financial reports. That is at least the argument that could be pressed in court by lawyers for former HealthSouth CEO Richard Scrushy, reportedly the first corporate executive to face charges under Sarbox. Attorneys say they are planning to challenge the act, according to Reuters.
Under Sarbox, CEOs and finance chiefs are criminally liable for knowingly certifying false financial reports. The act specifies a maximum fine of $1 million and/or a maximum prison term of 10 years for false certification.
Scrushy faces 85 charges, including conspiracy to commit fraud, filing false financial statements, money laundering, and securities and wire fraud. He is accused of defrauding the government and investors in his former company by spearheading a conspiracy to inflate earnings by $2.7 billion since 1996.
Click link below for full article from CFO.
Source: CFO
Published:2003-12-11
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