The federal probe of HealthSouth Corp. has cost another person connected with the company his job. Howard Capek resigned as a healthcare stock analyst at UBS, New York, because evidence surfaced that Capek broke UBS rules, company spokesman Mark Arena said. Capek joined UBS in 1999. His resignation is effective immediately, Arena said. Like auditor Ernst & Young, UBS is being investigated by the House Energy and Commerce Committee and the Securities and Exchange Commission in connection with allegations that Birmingham, Ala.-based HealthSouth inflated profits by $2.5 billion to meet analysts' expectations. An e-mail from Capek that violated UBS policy toward investment-banking clients, which HealthSouth was at the time, was uncovered as UBS compiled documents in cooperation with the investigations, Arena said. UBS has not found evidence that Capek or other UBS employees knew of the alleged fraud, Arena said. The SEC charged HealthSouth and founder Richard Scrushy in a civil complaint in March, but neither the company nor Scrushy has been criminally charged. Eleven current and former HealthSouth accounting executives have agreed to plead guilty to criminal fraud charges. -- by Vince Galloro
UBS analyst resigns over HealthSouth e-mail
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