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Corporate Event

HealthSouth Scandal

Corporate Fraud and Financial Scandals

In 2003 the hospital and rehabilitation company HealthSouth was found to have inflated its earnings by billions of dollars over several years in order to meet Wall Street expectations, in one of the largest accounting frauds uncovered in that era. Founder and chief executive Richard Scrushy was tried on related charges, and several other senior executives pleaded guilty to their roles in the scheme.

Facts
Event Type
Accounting scandal 1
Event Year
2003 1
Connections

Associated With

Accounting, Practice Disciplines

HealthSouth's founder and senior executives were found by the SEC in 2003 to have fraudulently inflated the company's reported earnings over several years, one of the largest accounting frauds prosecuted in United States corporate history.

Source Wikipedia, Encompass Health

Companies Involved

Sources
1. Wikipedia, Encompass Health
Wikipedia
  • Accounting scandal section
    On March 19, 2003, the SEC took action against the company regarding fraudulent accounting.
  • Associated With: Accounting
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