BusinessCompany NewsFormer chief executive takes on Sarbanes-Oxley

Former chief executive takes on Sarbanes-Oxley

A former high-profile chief executive, due to face trial for offences relating to the Sarbanes-Oxley Act, is taking the SEC to court claiming the law is 'unconstitutional' and 'overly vague'.

Link: Trace Sarbanes-Oxley to its origions

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.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

4w Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

8m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor