A treasury official at HealthSouth Corp., Birmingham, Ala., agreed to plead guilty to falsifying financial records, as federal prosecutors continued investigating alleged accounting fraud at the rehabilitation company. Jason Brown, 34, also agreed to cooperate with all investigations of the company, including one by the Securities and Exchange Commission, court records show. Prosecutors allege that Brown manipulated records to improve same-facility outpatient volume figures reported for HealthSouth's 2002 third quarter and that he falsified records regarding a $27 million stock sale to make it appear as if the sale took place in 2002, instead of 2001. Brown is the 12th HealthSouth executive to agree to plead guilty to criminal charges in the ongoing investigation. HealthSouth founder Richard Scrushy has not been charged in connection with the allegations, although court documents related to Brown and other defendants have alleged that "the then-CEO" of HealthSouth was a participant in the accounting fraud. -- by Vince Galloro
12th guilty plea in HealthSouth fraud probe
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.