Scrushy-Report.com

Name

Position

Notes

HealthSouth Executives

Richard M. Scrushy

(founder) CEO 1984-2002, 2003 Chairman of the Board

Indicted – 46 counts (Invoked 5th to Congress) Found not guilty of all charges. (Judge Karon Bowdre). SEC case against Scrushy was settled for $71 million. He was convicted of bribery in a separate case.

Aaron Beam

(founder) CFO 1984-1997

Pled guilty - Sentenced to 3 months in prison, 1 year parole and $10,000 fine. (Judge Robert Propst). Completed prison term 2/06

William Owens

Controller (1986-2000, 2003), CFO (2000-01), COO (2002-03), CEO (2002-03)

Pled guilty -  Sentenced to 5 years in prison (Judge Sharon Blackburn) He is currently serving his sentence at the federal prison camp at Maxwell Air Force Base. Current projected release date is: 1-17-2011

Weston Smith

Controller (2000-01), CFO (2001-02)

Pled guilty- Sentenced to 27 months in prison.  (Judge Robert Probst) Smith has begun his serving his sentence in Montgomery while awaiting appeal. He was released from prison on 8-10-07.

Malcolm “Tadd” McVay

Director of Investor Relations (1999-2000), Treasurer (2000-02) CFO (2002-03)

Pled guilty-  Sentenced to 60 months probation and $10.000 fine. (Judge UW Clemon). This sentence was vacated on appeal.

Michael Martin

Treasurer, CFO (1997 - 2000)

Pled guilty - Sentenced to 60 months probations and $50,000 fine (Judge UW Clemon) The sentence was overturned on appeal, and he was re-sentenced to serve one week in jail. The sentence was again overturned on appeal, and assigned to Judge Scott Coogler, who sentenced him to three years in prison. He is currently in the federal prison camp at Maxwell Air Force Base, at Montgomery. He was released from prison on 12-24-08.

Daniel Riviere

Pres & CEO of Ambulatory Services Division

 

Pat Foster

Pres & COO Inpatient Services

 

Eugene Smith

(founder)

Was CEO of Meadowbrook, with Mike Martin.

Anthony Tanner

(founder) Executive VP, Corporate Secretary & Compliance Officer

 

Richard Botts

VP for Tax

Pled guilty - Sentenced to 60 months probation and $10,000 fine. (Judge UW Clemon). This sentence was overturned on appeal, and he was resentenced to the same term of probation.

Emery Harris

Asst. Controller (1999-2003)

Pled guilty - Served 5 months in prison and fined $3,000 (Judge Inge Johnson) -- The original sentence was reaffirmed on appeal.

Ken Livesay

Asst. Controller (1989-99), CIO

Pled guilty - Sentenced to 60 months probation and $10,000 fine. (Judge UW Clemon). His sentence was appealed by the government and it was reaffirmed. The government has appealed his sentence three times, with each time leading to being resentenced to the same sentence of probation. His probationary period ended in 2008.

John Midkiff

(founder)

 

Jim Bennett

President & COO

Indicted - Indictment was dismissed without prejudice on 7-19-05

Cathy Edwards

VP

Pled guilty -Sentenced to 48 months probation and $2,000 fine (Judge Inge Johnson) Released from probation: 12/05

Rebecca Kay Morgan

Group Vice President for General Corporate Accounting

Pled guilty -Sentenced to 48 months probation and $2,000 fine (Judge Inge Johnson)

Angela Ayers

VP

Pled guilty - Sentenced to 48 months probation and $2,000 fine (Judge Inge Johnson) -- Released from probation: 12/05

Virginia Valentine

Asst. VP

Pled guilty - Sentenced to 48 months probation and $2,000 fine (Judge Inge Johnson) Released from probation: 12/05

Jason Brown

VP of Finance

Pled guilty - He was sentenced to one year + one day in jail (Judge Sharon Blackburn) He has finished serving his 1 year term.

Catherine Fowler

VP of Treasury & Cash Management

Pled guilty - Sentenced to 24 months probation and $5,000 fine. (Judge UW Clemon). Appeal of the sentence was dismissed with prejudice.

Sonny Crumpler

HealthSouth Division Controller and CFO of Source Medical

Indicted - Found guilty in jury trial. He was sentenced to 8 years and is currently serving his sentence at Talladega Federal Correction Institution. Current projected release date: 8-29-2013

Will Hicks

V P of Investments

Pled guilty - He was sentenced to 24 months probation, and forfeited $50,000. (Judge Robert Propst)

Teresa Sanders

Chief Auditor

Testified to the House of Representatives.

Vincent Nico

VP

Pled guilty - – charged in separate bribery scandal, involving Saudi Hospital. Sentenced to 36 months probation and $250,000 fine. (Judge Sharon Blackburn)

Thomas Carman

VP of mergers & acquisitions. Executive VP of Corporate Development.

Pled guilty -– charged in separate bribery scandal, involving Saudi Hospital. Sentenced to 36 months probation and $500 fine.(Judge L. Scott Coogler)

Marca Pearson

VP of Benefits

Testified for the prosecution, in Scrushy's tiral.

Sara Garvin

VP for Corporate Development

 

Suzanne Tortorigi Henniger

VP of Ambulatory Development

 

Kelly Coleman

Asst. VP of Finance

 

Dennis Wade

Group VP for Human relations

 

Bill Horton

 VP & Corporate Counsel

Testified for defense in Scrushy trial.

Larry House

VP of Operations, Division President

He was also CEO of Scrushy founded company MedPartners 1993-1998

Daryl Brown

Pres. & COO Outpatient services

 

Kelly Cullison

Director of compliance

Testified to Congress. Testified for prosecution.

Greg Smith

Chief Auditing officer

James Reilly

VP of Legal Services

Indicted – Charged with bribery in Saudi Hospital case. Found Not Guilty in jury trial. (Judge Inge Johnson)

Robert Thomson

CEO of Inpatient Division

Indicted – Charged with bribery in Saudi Hospital case. Found Not Guilty in jury trial. (Judge Inge Johnson). He is facing 16 lawsuits- 8 from the insurance industry and 8 from holders of HealthSouth stocks or bonds.

Diana Henze

Asst. VP for finance (1998 -2000) Transferred to IT and returned to Finance after the fraud

Testified to house- implicated Livesay & Owens. Testified for prosecution. Non-family member who independently uncovered the fraud.

Brad Hale

 VP of administration & HS Corporate Secretary, Director of Human Resources

 

Susan Jones-Smith

VP Financial Reimbursement

Invoked 5th to Congress - Wife of Weston Smith

Larry Taylor

Pres & CEO of Ambulatory Services

 

Russell Maddox

Pres. & COO of HealthSouth Diagnostics

Was director, with Scrushy, at HealthTronics. Michael Martin was CFO.

Jason Hervey

VP for media and communications

Former child actors who was companion to Scrushy during the fraud years. He later sued HealthSouth to enforce his Scrushy-era contract.

Martin Cohen

Senior Managing Director

 

Leif Murphy

HealthSouth Treasurer

Left company after reporting what looked like fraudulent income on the corporate books. Testified for the prosecution.

Jay Grinney

(Post Scrushy) CEO of HealthSouth

 

 

 

 

HealthSouth Board of Directors

Joel Gordon

1996-2005

He was interim chairman of the board - post Scrushy.

Charles Newhall

1985-2004

Venture capitalist. Testified for defense in Scrushy trial.

Dr. Allan R. Goldstein

As of 1991

 

Dr. Phillip C. Watkins

1994-2002

Cardiologist

George Strong

1984-2003

 

Richard Celeste

1991-1993, 1994-1997

Former governor of Ohio, Director of Peace Corps, and ambassador to India.

Sage Givens

1985-2003

Venture capitalist - Testified for defense in Scrushy trial.

John Chamberlin

1993-2004

 

Larry Striplin, Jr

1999-2004

 

Jan Jones

1999-2000

Former Mayor of Las Vegas

Robert May

2002-2005

Was acting CEO- post Scrushy. Chairman of the board from March 2003-October 2005

Betsy Atkins

2003-2003

She only served for two seeks.

Jon Hanson

2002-

Chairman of the board - October 2005

Edwin Crawford

1998-1999

Chairman, President and CEO of Caremark.

Raymond Dunn

1995-1998(?)

Came in with Advantage Health merger

Lee Hillman

2003-2005

Brought in the post-scandal turn-around era. He had been CEO of Bally's and resigned when Bally's accounting came under scrutiny.

Owens, Daryl Brown, Martin, Beam, Bennett & Scrushy

--at various times--

Inside board members- Scrushy was chairman.

 

 

 

Other HealthSouth Employees

Dr. James Andrews

Sports Medicine Clinic  - left in 2005

 

Michael Carney

Administrator & Physical Therapist

 

Ray Ledbetter

 HealthSouth’s chief pilot

 

Steven Schlatterer

Physical Therapist

Testified to Congress

Teresa Sanders

Chief Auditor (at HS 1990-99)

Testified to Congress

Brandi White

Accountant

Testified for prosecution, in Scrushy trial.

James Goodreau

Chief of Security

Testified to Congress. Testified for defense in Scrushy trial.

Neal Webster

Internal Auditor

 

Bill Massey

Accountant and Personal assistant to Scrushy

Committed suicide after being accused of embezzling money from Scrushy

Andy Brimmer

HealthSouth spokesman

 

Michael Vines

Asset Manager Supervisor for Midwest Region

Testified to Congress. After resigning his position, he sent emails to E&Y auditors, warning of fraud at Healthsouth.

 

 

 

Legal Case & Government Officials (and adjuncts)

Government

 

 

Judge Inge Johnson

US District Judge

Judge in Harris, Ayers, Valentine and Morgan cases. Also judge in the separate Reilly and Thomson case.

Judge U.W.Clemon

US District Judge

Judge in McVay, Martin, Livesay, Botts and Fowler cases.

Judge Karon O. Bowdre

US District Judge

Judge in the Scrushy case

Judge Sharon Lovelace Blackburn

US District Judge

Judge in Owens, Carman and Brown case. (Also judge in the Nico case)

Judge Robert Propst

US District Judge

Judge in Beam case & Smith case.

Michael Chertoff

Asst. Attorney General

 Supervised original indictment of Scrushy. He was later director of Homeland Security under the Bush administration.

Gerald Kelly

FBI Agent

Lead LE investigator

Alice Martin

US Attorney

US Attorney for Northern District of Alabama. Lead prosecutor for the government

Richard Wiedis

US Attorney

 From DOJ DC-based team. Has since left DOJ. He is the VP of Risk Management and Corporate Compliance for MicroStrategy, which makes corporate intelligence software.

Richard Smith

US Attorney

He was acting head of the DOJ's fraud division. He left the DOJ after the trial. Smith worked first for Akerman and Senterfitt, and is now at Fullbright & Jaworski, which incidentally was the same firm that investigated insider trading claims against HealthSouth and Scrushy, in 2002.

Colleen Ann Conry

US Attorney

 From DOJ DC-based team. After some post-Scrushy success with DOJ, Conry joined the firm of Ropes & Gray.

Jaimes Ingram

Asst. US Attorney

As of mid-2008, he was still with the DOJ in the Northern District of Alabama.

Tamarra Matthews-Johnson

Asst. US Attorney

US Assistant Attorney, as of 2008, she is still with the DOJ in the Northern District of Alabama.

Nathaniel Edmunds

US Attorney

From DOJ DC-based team. Since the trial, he has been involved in some of the Abramoff-reated investigations. He is still with DOJ as of 1-09.

Mary Dimke

US Attorney

From DOJ DC-based team. Since the trial, she was on the winning side of a fraud case involving Westar Energy.

Joyce White Vance

Asst. US Attorney

Handling US appeals of sentences to Weston Smith and Michael Martin.

Scrushy's team

 

 

Donald Watkins

Attorney for Scrushy

 

James Parkman

Attorney for Scrushy

 Lead attorney.

R. Martin Adams

Attorney for Scrushy

Works in Parkman's office. Scrushy's son-in-law

H. Lewis Gillis

Attorney for Scrushy

 

Art Leach

Attorney for Scrushy

former US attorney- forfeiture. Defenfded Scrushy in Montgomery.

Les Moore

Attorney for Scrushy

Former employee of HealthSouth. Defended Scrushy in Montgomery.

Mavanee Bear

Attorney for Scrushy

 

Charles Russell

PR guy. Image consultant and spokesperson

 Removed from Scrushy's team: July, 2006

Tom Sjoblom

Attorney for Scrushy's civil cases

These guys are from the NY based firm of Chadbourn & Park. The represented Scrushy in the early stages of this case, but were later replaced by Watkins, Parkman and Leach. They are apparently still retained by Scrushy, for his civil cases.

Scott Balber

Attorney for Scrushy's civil cases

David Lowell

Attorney for Scrushy's civil cases

Investors and Business People associated with HealthSouth

Mathew Mackowski

Citicorp-San Francisco

 

Geoffrey E. Harris

From Smith Barney

Gave early positive stock evaluations for HealthSouth. When he issued an unfavorable report on the company after Mike Martin spoke to him, believing he was unable to report, the stock dropped.

Bill McGahan

Banker with UBS Warburg

Friend and associate of Mike Martin. Worked at UBS Warburg.

Benjamin Lorello

Banker with UBS Warburg

Originally from Smith Barney. Helped Scrushy and HealthSouth make the deals to found subsidiary companies. Worked at UBS Warburg.

Albert Rice IV

Analyst with Merrill Lynch

Testified in the trial

Miscellaneous Associated people

Monzer Hourani

Architect, engineer and friend of Scrushy. Worked on design of digital hospital

 Mentioned in cross-examination of both Owens and Martin

Hope (Launius) Crumpton

Girlfriend of Bill Massey

was friend of Leslie Scrushy

Leslie Scrushy

Wife of Scrushy

former employee of HealthSouth

John McRoberts

CEO of Meadowbrook

Partner with Scrushy in Capstone Capital, and founded Meadowbrook with Michael Martin-which did a $45 million deal with HealthSouth

Michael Plaia

Scrushy son-in-law

Was COO of Source Medical, friend of convicted conspirator Sonny Crumpler; owner of TV stations in Birmingham (aired two Scrushy shows during the trial) and in Montgomery. Does various errands for his father-in-law and associates.

Eric Hanson

HealthSouth Lobbyist (US Strategies Corp)

Sometimes called Richard Scrushy's "personal lobbyist"

Politicians associated with HealthSouth or Richard Scrushy

Tom Harkin

US Senator - Iowa

democrat

Orin Hatch

US Senator - Utah

republican

Tom Daschle

ex US Senator- South Dakota

democrat

JT Waggoner

State Senator - Alabama

republican

Newt Gingrich

(former) Congressman - Georgia

republican

J.C. Watts

(former) Congressman - Oklahoma

republican - former football player

Don Siegelman

former governor of Alabama

Although politically opposed to him, Scrushy & Siegelman were indicted in a bribery case

W.J. "Billy" Tauzin

US Congressman - Louisiana

Chairman Energy & Commerce - Chaired congressional inquiry

Related Businesses

Source Medical Solutions

Daryl Brown was Pres. & CEO. Sonny Crumpler was CFO

Founded at HealthSouth, their primary customer, and heavily invested in by Scrushy

21st Century Health Ventures

Partnership with Michael Martin & Scrushy

Investment firm. Invested HealthSouth money.

Physicians Solutions

Scrushy was an investor

Received loan from 21st Century Health Ventures

GG Enterprises

Found by Scrushy's brother & mother

Did business with HealthSouth. Involved in scandal over Medicare and DoD billing.

MedPartners/Caremark

Scrushy was chairman of the board & (briefly) CEO, Larry House was CEO, Tadd McVay was a VP, Michael Martin was a board member and other directors included HS board members Striplin and Newhall.

MedCenterDirect

Scrushy partnership with Chuck Newhall

 

Integrated Health Services

Scrushy was on the board

 

Capstone Capital

Partnership with Scrushy, Martin and John McRoberts

 

Surgical Health

Scrushy was on the board

 

HealthTronics Surgical Services

Mike Martin was on the board

Did business with HealthSouth

Meadowbrook Healthcare Co.

   

Cannongate

Partnership with Martin and McRoberts

 
 
from Scrushy-report.com ©2005-2009 -- compiled by Philip Smith