Congress Looking at HealthSouth BankersMay 9, 2003 | www/thestreet.com A House committee reportedly is seeking information about the relationship between HealthSouth and the investment bank UBS Warburg.
The request from the House Energy and Commerce Committee asks if UBS was "diligent in their review and assessment of HealthSouth's financial health and the interwoven financial relationships of many officers and directors of HealthSouth."
The letter seeks information about UBS' role in several side companies in which former CEO Richard Scrushy had an interest, and specifically asks about the company's relationship with UBS bankers Benjamin Lorello and William McGahan, The Wall Street Journal reported.
UBS said in a statement "like everyone else, UBS Warburg was shocked and dismayed to learn of the accounting fraud that took place at HealthSouth. Of course, the firm will cooperate fully with the request."
The inquiry came one day after a federal judge lifted a freeze on Scrushy's assets, saying Justice Department investigators hadn't established a "reasonable likelihood" that Scrushy had masterminded the $2 billion accounting fraud that has nearly brought down the rehabilitation care company.