A former president and chief operating officer of HealthSouth Corp., Birmingham, Ala., became the first former employee of the company accused of insider trading and the 18th charged in connection with a $2.6 billion accounting fraud scandal.
Prosecutors filed 38 counts -- including 30 related to insider trading -- against James Bennett, 47, HealthSouth's president and COO from 1995 to 2000. If convicted, Bennett would face up to 350 years in prison, $33 million in fines and forfeiture of $28.1 million.
A lawyer for Bennett said his client would plead not guilty. Prosecutors said Bennett, while aware of the fraud, earned $17.4 million from sales of HealthSouth stock in 2000 and 2001.