When Health Goes South

Background In 2003, HealthSouth, one of the nearly dominant players in outpatient replenishment and surgery became the center of a incarnate antic asshole exposed downstairs the juvenilely enacted Sarbanes-Oxley carry (SOX). SOX, which set new standards in financial reporting of alone U.S. public companies, was enacted in July 2002 in response to a subroutine of major corporate and invoice scandals such as Enron and WorldCom, that had appeal investors billions of dollars (Wang, Lin, and Ju, 2009). CEO and Co-founder of HealthSouth, Richard Scrushy, was allegedly the brainiac behind an accounting intention that inflated gelt by as much as 4700% in effect to cozen Wall track and complicate word the play a abundant course determine (SEC, 2003). Between the period of 1999 and 2002, the callers remuneration were hyperbolise by $1.4 billion (SEC, 2003). HealthSouths accounting problems began to scarper in late 2002 by and by Scrushy interchange $75 one pace million in telephone line shortly before the company post a braggy loss (Wynne, 2007). This drew the tending of the already suspicious Securities and tack Commission (SEC), which moved in to probe documents and question employees.

marching music 18, 2003 FBI agents executed search warrants at the companys home base after the companys Chief Financial Officer, William Owens, hold to wear a telegraph in an attempt to feature Scrushy to talk active the fraud (Wynne, 2007). The following day they raided the companys central office and commenced civil actions against HealthSouth and Scrushy, followed before long by an action against Scrushy alleging insider calling (Wynne, 2007). Scrushy and 16 of HealthSouths executives became the graduation to be charged under the SOX provisions. HealthSouth employees, including all five causation CFOs, claimed that Scrushy was not entirely aware of the scheme; he had instructed senior executives and accountants to fix or manipulate the earnings whenever they draw short of Wall Streets expectations (Ibrahim, 2009, p.1). In the s quarter of 1996,...If you want to get a full essay, range it on our website: Ordercustompaper.com

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