HealthSouth Corp. founder and former Chief Executive Officer Richard Scrushy will be the first person tried under the Sarbanes-Oxley Act for his actions as CEO when his criminal trial begins next year. A U.S. District Court judge in Birmingham, Ala., refused to dismiss three charges based on the Sarbanes-Oxley Act in the federal government's 58-count indictment accusing Scrushy of directing multibillion-dollar accounting fraud at HealthSouth. At least one former chief financial officer of the Birmingham-based company was charged under the 2002 act; Scrushy is the first CEO. Sarbanes-Oxley was crafted in the wake of devastating financial scandals at Enron Corp. and WorldCom in an attempt to hold executives accountable for the accuracy of financial reports. -- by Joseph Mantone
Ruling sticks Scrushy with Sarbanes-Oxley charges
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