HealthSouth Serious Accounting Problems. Congressional investigators yesterday released a 1998 letter from an anonymous writer that warned auditors at Ernst & Young of serious accounting problems at HealthSouth Corp., about 41/2 years before regulators swooped down on the Alabama company. "You people and I have been … [Read more...] about 1998 Letter Warned About HealthSouth

HealthSouth Probe Investigation. The governmental probe into HealthSouth is widening again. The U.S. House Energy and Commerce Committee has launched its own investigation into the alleged accounting scandal that has snared the health care provider, which operates 5 facilities in Jacksonville. Also on the committee's investigation … [Read more...] about HealthSouth Becomes Issue On Capitol Hill

HealthSouth Accounting Fraud Investigation. HealthSouth Corp.'s Birmingham employees will see job cuts soon as the company tries to avoid bankruptcy amid a widening accounting fraud investigation. "Some assets and corporate employees that don't impact patient care will have to be reduced or eliminated," company spokesman Ernie … [Read more...] about HealthSouth To Cut Jobs As Probe Widens

Probe of HealthSouth Corp. Expanded. Federal investigators are expanding their investigation of accounting fraud at HealthSouth Corp. , scrutinizing the company's operating units and asking questions about the work of the company's tax firm, KPMG LLP, people familiar with the matter told The Wall Street Journal. So far, 11 finance … [Read more...] about Probe of HealthSouth Expanding, to Include KPMG Tax Firm

HealthSouth Massive Criminal Accounting Fraud. Healthsouth Corp. dismissed its chairman and chief executive, Richard M. Scrushy, and moved to replace its outside auditor, Ernst & Young LLP, as federal prosecutors made deeper inroads into the group of executives they say are responsible for massive criminal accounting fraud at the … [Read more...] about HealthSouth Fires Scrushy

HealthSouth Executive Pleaded Guilty. HealthSouth Corp. fired Richard Scrushy as chairman and chief executive, severing ties with its founder as a third executive pleaded guilty Monday in a mushrooming accounting scandal. The company said Scrushy, who built HealthSouth into a leading health care chain and was previously suspended … [Read more...] about HealthSouth Fires Chief Executive

HealthSouth Massive Accounting Scandal. As it turns out, red flags flew all around HealthSouth but no one seemed to take notice till it was too late. Yes, a few people on Wall Street took shots at the company well before it collapsed completely. But even the most tepid reports tended to sound more indifferent than alarmed until … [Read more...] about HealthSouth Watchers Had Their Doubts

HealthSouth Officer Fraud Charges. Federal prosecutors, wielding a tougher law against corporate fraud and the prospect of stiff prison sentences, secured a guilty plea from a second HealthSouth Corp. finance chief, ratcheting up the pressure on the company's chairman and chief executive, Richard M. Scrushy. William T. Owens, … [Read more...] about HealthSouth Officer Enters Plea Accord