Grassley on the Fraud Indictment of the Former HealthSouth Leader
M E M O R A N D U M
To: Reporters and Editors
Re: Indictment of Former HealthSouth CEO Richard M. Scrushy
Da: Tuesday, Nov. 4, 2003
Sen. Chuck Grassley, chairman of the Committee on Finance, today made the following comment regarding the announcement by the Department of Justice that Richard M. Scrushy, former chief executive officer and chairman of the board of HealthSouth Corp., has been charged with an 85-count indictment stemming from a wide-ranging scheme to defraud investors, the public and the U.S. government about HealthSouth’s financial condition. The government is seeking more than $278 million in forfeiture.
“Today, the Department of Justice, the U.S. Attorney’s Office, and the Internal Revenue Service sent a strong, important message. When a major corporate CEO is indicted on charges of large-scale fraud, involving hundreds of millions, if not billions of dollars, it’s clear that nobody should believe they are above the law. I hope investigators and prosecutors will aggressively scrutinize other companies that appear to be fraudulently and systematically ripping off shareholders and the federal government. America’s taxpayers and investors deserve a new era of corporate accountability.”
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