Title page: HealthSouth and the Scrushy Way p. 1 3. Table of Contents p. 2 4. Introduction p. 3 5. Government Subsidies p. 3 6. Signs of Corruption p. 4 7. Ethical issues of HealthSouth p. 5 8. Management of HealthSouth p. 5 9. Intimidation and Cooperation p. 6 10. Culture of Corruption p. 7 11. Lavish Lifestyle and Philanthropy p. 8 12. Impact on Stakeholders p
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scandal threatened to change his career, his wealth, and his freedom. The Securities and Exchange Commission (SEC) filed a civil law suit against HealthSouth Corporation and Richard M. Scrushy. The SEC charged that the company inflated their books by $1.9 billion since 1999 (SEC, 2003). The filing of these charges had a multiple impact on the stakeholders. The ethical dilemmas that caused the rise and fall of Richard M. Scrushy will be reviewed. Scrushy’s Beginnings Scrushy began his humble
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HealthSouth: The Scrushy Way Vonetta M. Henderson Northcentral University Introduction The Enron and Tyco scandals brought visibility to corporate scandals. The magnitude of these scandals resulted in the Sarbanes-Oxley (SOX) Act in 2002. Richard M. Scrushy and HealthSouth Corporation were the first CEO and company to be indicted under the SOX Act. HealthSouth was charged with filing false financial statements with the SEC to hid poor financial conditions
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The Scrushy Influence Table of Contents Table of Content…………………………………………………………………………………. 2 Abstract……………………………………………………………………………………………3 Introduction………………………………………………………………………………………..4 Richard Scrushy-Biography……………………………………………………………………….5 Health South History………………………………………………………………………………6 Health South Down Fall…………………………………………………………………………...7 Sentence…………………………………………………………………………………………...8 Sentence…………………………………………………………………………………………...9 Conclusion……………………………………………………………………………………….10
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------------------4 Introduction ------------------------------------------------------------------------------5 & 6 The role of Auditors at HealthSouth ---------------------------------------- 7 & 8 SEC Investigation ----------------------------------------------------------------------------9&10 Impact on Stakeholders ---------------------------------------11, 12, 13 & 14 Outcome and Fairness In Punishment ----------------------------------------
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OUR LADY OF FATIMA UNIVERSITY- ANTIPOLO CAMPUS RECENT ACCOUNTING SCANDAL: “The HealthSouth Scandal of 2003” SERRAON, ABIGAIL E. Accountancy 4Y2-1 ENGR. ANTHONIO CHAN March, 2016 INTRODUCTION Embezzlement, misappropriation, cheating or stealing is a form of fraudulent act done with an organization. There are television and newspaper stories nearly every day about all kinds of corporate schemes and scams. Behind every fraud is a person or a group of people who has taken what is not
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HealthSouth Corporation: Fraud, Greed and Corporate Governance Manmohan D. Chaubey, Ph.D. The Pennsylvania State University One College Place Du Bois, PA 15801 (USA) Tel: 814-375-4846 Fax: 814-375-4784 Email: mdc13@psu.edu Case for ICMC2006 International Conference on Management Cases 4-5 December 2006 IMT Ghaziabad, India HealthSouth Corporation: Fraud, Greed and Corporate Governance During the 1990s, Richard M. Scrushy, the former CEO of HealthSouth Corporation, engineered many acquisitions
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The Fraud Triangle 9/22/2012 Allison Walton | The Fraud Triangle The fraud triangle are conditions for fraud arising from fraudulent financial reporting and misappropriation of assets. These conditions are: a. Incentive/Pressure b. Opportunities c. Attitude/Rationalization The fraud triangle is depicted by the following image: Incentive/Pressure Management or other employees will have incentives or circumstances of pressure to commit fraud. If the decision is made by management
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CEO’s to commit financial fraud by altering the company’s books to drive the stock price up, which drives his pay up. In 2002 the CEO of HealthSouth sold $100 million dollars in stock just days before the company posted a huge loss. HealthSouth over the course of seven years beginning in 1996 overstated their income by 2.7 Billion dollars ("Sec charges healthsouth," 2003). The CEO was accused of having senior accountants inflate the earnings of its facilities in order to drive up the company’s value
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Main Campus HealthSouth Rehabilitation Hospital 2935 colonial Drive Columbia, SC 29203 (803) 401-1331 HealthSouth: Columbia - www.healthsouthcolumbia.com HealthSouth is one of the nation's largest healthcare services providers, operating Acute Rehab and Outpatient Rehab Centers nationwide. Our vast network of highly skilled professionals and the latest equipment and technology offers patients access to high-quality healthcare. HealthSouth Rehabilitation offers a low therapist to patient
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