HealthSouth CEO found not guilty

The former chief executive officer and co-founder of HealthSouth Corporation, Richard Scrushy, has been found not guilty on all charges relating to fraud at the hospital chain.

Pleading that the $2.7 billion fraud had been committed without his knowledge, all 36 counts, including fraud, money laundering, and conspiracy charges were dropped.

HealthSouth is based in Birmingham, Alabama and owns a chain of rehabilitation hospitals and outpatient clinics. Even though Mr. Scrushy has been acquitted on all charges, HealthSouth have said that under no circumstances will he be offered his position at the company back.

"Our Board of Directors declared Mr. Scrushy's contract null and void in March 2003. The new board and new management team remain appalled by the multibillion-dollar fraud that took place under Mr. Scrushy's management and the environment under which such fraud could occur," said HealthSouth chairman Bob May.

HealthSouth is now trying to recover from the fraud and reports show that it made losses in 2000,2001 and 2002.

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