Wednesday, June 29, 2005

Scrushy Crushes Fraud Charges

Richard Scrushy, former CEO of Birmingham, AL healthcare giant HealthSouth, was found not guilty on criminal charges of fraud brought based on Sarbanes-Oxley legislation. Jurors complained that prosecution witnesses were not credible and found FBI tapes less convincing than expected. Scrushy's tribulations are not yet over; he still faces SEC civil trial and new HealthSouth head Bob May indicated that Scrushy would not be welcomed back anytime soon.

Update: Dan Ackman of Forbes (
asks whether market incentives might be more effective at unearthing fraud more quickly.


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