The U.S. Supreme Court has refused to hear an appeal from former HealthSouth Chief Financial Officer Malcolm Tadd McVay, who pleaded guilty in 2003 to his involvement in the rehabilitation providers earlier accounting fraud.
The decision puts back in play the 11th Circuit Court of Appeals ruling that remands the case for resentencing, according to court documents. As a result, the case will return to the U.S. District Court for the Northern District of Alabama, according to Tommy Spina, McVays attorney in Birmingham. Earlier, that court had sentenced McVaywho signed a late-2002 quarterly report even though he knew it contained false informationto six months home detention with electronic monitoring, a fine of $10,000, a forfeiture of $50,000 and probation for five years.
Spina said he was disappointed but not particularly surprised in as much as the Supreme Court of the U.S. elects to hear very few cases.
Since its multibillion-dollar accounting fraud, HealthSouth Corp., Birmingham, Ala., has agreed to some considerable settlements and worked to sever ties with the companys former leadership. The company said it had no comment on the Supreme Courts decision to deny McVays petition.