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Sarbanes-Oxley News & Developments
Ex-HealthSouth CFOs Plead Guilty to Fraud - Implicate FounderMichael Martin and Tadd McVay told U.S.District Judge Clemon that founder Richard M.Scrushy was involved in the scheme to inflate earnings.
> > Michael Martin and Tadd McVay admitted to charges of conspiracy to commit fraud and filing false financial reports for HealthSouth. In civil charges against the company and Richard M.Scushy, they allege he orchestrated the fraud to ensure earnings met Wall Street expectations.
Scrushy has not be charged criminally has denied knowledge of the fraud. But 11 former HealthSouth executives, including all five CFOs the company had, have agreed to plead guilty in the fraud case.
Martin and McVay face possible maximum penalties of $1.25 million in fines and 15 years in prison.
Source: The Nando Time article dated May 1, 2003
Published:2003-05-02
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