HealthSouth Accounting Fraud Trial Begins

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On day one of the accounting fraud trial of Richard Scrushy, former HealthSouth CEO, attorneys questioned the alleged conspiracy.

“We are challenging the foundation of the conspiracy, when it occurred, who is involved and when it started,” said defense attorney Arthur Leach.

Former HealthSouth CFO, Aaron Beam testified that the $2.7 billion fraud began in 1996 when Scrushy ordered him to “fix” a revenue shortfall.

“There should be no information pre-(dating)1996 for challenging when it started and who was in it,” said Leach.

According to Birmingham Business Journal,

“The defense’s case is predicated on Scrushy’s lack of knowledge of the $2.7 billion scheme to inflate the company’s stock between 1996 and 2003.

Leach and lead defense attorney Jim Parkman say the fraud was a conspiracy among “the family,” or an elite group of high- and mid-level HealthSouth executives who lied to Scrush – their superior – about the company’s financial health and their role in the inflated figures.”

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HealthSouth Accounting Fraud Trial Begins
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