PracticeAccounting FirmsSarbanes-Oxley steps in against health care group

Sarbanes-Oxley steps in against health care group

The Sarbanes-Oxley Act is being used for the first time to lay federal charges against the founder of hospital operator HealthSouth, as well as a number of its former executives.

Link: Sarbanes-Oxley report

Richard Scrushy, the charismatic founder of the company, has been accused of a $1.4bn (£900m) accounting fraud, after coming in for criticism last year for alleged corporate governance failures, according to reports.

Charges have also been laid against nine other former employees, under the Sarbanes-Oxley Act, for alleged accounting fraud costing billions of dollars and dating back 15 years.

To date, nine former employees have already pled guilt to fraud charges including three former chief financial officers

Scrushy, chairman and chief executive officer, denies any wrongdoing.

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