HEALTHSOUTH ACCOUNTING SCANDAL PDF
HealthSouth got involved in a corporate accounting scandal in which its founder, CEO, and chairman, Richard M. Scrushy was criminated of. Auditors have uncovered hundreds of millions of dollars in previously unreported accounting fraud at HealthSouth, the embattled chain of. Timeline of Accounting Scandal at HealthSouth. Compiled by washingtonpost. com staff. Thursday, September 30, ; PM. HealthSouth, the largest U.S.
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A downturn was happened in the market inlargely influenced by a Medicare crackdown on fraud. However, HealthSouth insisted that it would not impact on them.
Since selling large numbers of their own shares, senior staffs believed that their profits would not be met. The main trouble happened since Then, the scandal at HealthSouth started to become evident in mid As a result, the government began to pay attention to hea,thsouth huge difference between the number of actual and reported profit of Healthsouth.
At this time, the scandal was not a secret any more. After that, share prices of Healthsouth became extremely unstable. At the end ofEnron, one of the world’s major electricity, natural gas, communications, and pulp and paper companies, went bankrupt because of accounting fraud, known since as the Enron scandal.
Following the Enron scandal, criminal investigators started looking at accounting practices in other companies. HealthSouth became a target towards the end of However, Richard Scrushy still sold a large number of shares and announced that profits were expected to accounhing.
He claimed deceptively that this was due to a change in Medicare funding. However, it was an obvious deception acciunting Richard Scrushy can not gain trust by investor.
Share value of Healthsouth plummeted and Scrushy rode a wave of discontent. InHealthsouth was in trouble and faced bankruptcy. The next day civil scanal were commenced against Scrushy and HealthSouth.
The company was delisted from the stock exchange. While this executive unfortunately appears to have gotten away with the accounting scandal, he was ultimately found guilty of another.
Two CFOs tell a tale of fraud at HealthSouth.
Michael Wynne HealthSouth Overview [online]. Bhamwiki HealthSouth [online].
How they did it. How They Were Caught. Where are they now.