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HealthSouth Accounting Probe Could Widen

Apr 14, 2003 | The Wall Street Journal

An investigation of alleged accounting fraud at HealthSouth Corp. (HRC) could widen beyond the nine former executives who have reached plea agreements with the government, people familiar with the situation and court documents told The Wall Street Journal.

According to these individuals, additional plea agreements with current or former HealthSouth employees could be reached by the middle of the week. In court filings last week, the Justice Department, which is investigating the suspected $2.5 billion accounting fraud, said other individuals familiar with the alleged scheme will be called as witnesses before a grand jury or in a potential criminal trial.

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