Two executives of HealthSouth Corp., Birmingham, Ala., testified that they had never been advised to falsify financial information and had not seen evidence of accounting fraud at the company. The executives -- surgery center division President Larry Taylor and inpatient division President Patrick Foster -- testified as part of an ongoing hearing over whether HealthSouth founder and former CEO Richard Scrushy will be permitted access to his personal assets during a federal probe of allegedly $2.5 billion in accounting fraud at the company. Scrushy, who has not been criminally charged and maintains his innocence in the matter, has been given access to $17 million for taxes. He has asked for access to $70 million for taxes, living expenses and litigation costs. Former HealthSouth CFO Weston Smith did not respond yesterday to a subpoena to testify in the hearing in U.S. District Court, Birmingham. He was scheduled to testify today. -- by Julie Piotrowski
HealthSouth division chiefs say they saw no fraud
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