Richard Scrushy, former CEO and founder of healthcare provider HealthSouth, filed a motion with the US District Court of Birmingham, Alabama after the SEC brought a civil complaint against him accusing him of conducting financial fraud dating back 18 years.
Scrushy has pleaded not guilty to all the charges and a trial date was set for the 23 August, but has now been postponed to September.
Lawyers for Scrushy will argue that Sarbanes-Oxley, introduced in the wake of the Enron and WorldCom scandals, is unconstitutional because it makes certification of an erroneous SEC filing a possible criminal offence for a corporate officer, but does not fault other employees involved in the filing of these documents.
But experts predict Scrushy will fail because the act was enacted under Congress’ power.
The effectiveness of Sarbanes-Oxley is due to be reviewed this summer.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements