Judge orders Scrushy to pay $2.8B to shareholders

Source: AP/Yahoo.com

BIRMINGHAM, Ala. – A state judge on Thursday ordered former HealthSouth CEO Richard Scrushy to pay about $2.8 billion to shareholders who sued over accounting fraud at the rehabilitation chain.

Circuit Judge Allwin E. Horn, who heard the case without a jury, ruled in favor of HealthSouth shareholders who filed a civil suit claiming Scrushy was involved in a massive fraud that nearly sent the company into bankruptcy.

Scrushy was acquitted in a federal criminal case over related charges and testified in the state civil suit that he knew nothing about any fraud. He is serving a nearly seven-year sentence for a 2006 conviction in a separate state government bribery case.

The Alabama suit accused Scrushy of unethical dealings with the company while it was going broke and complicity in $2.6 billion in fraudulent earnings and asset reports it filed with regulators from 1996 to 2002. The amount shareholders sought included money they claimed he pocketed through sweetheart deals.


Read more: http://news.yahoo.com/s/ap/20090618/ap_on_bi_ge/us_healthsouth_scrushy

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Sweet! This, along with the news of the AIG former CEO selling stock worth billions and other AIG stock heading to Bermuda is blowing the lid off the scheming on Wall Street. Sort of anyway.

Meanwhile, what is happening to all the Health Care fraud investigations?

Deja DU: 30 U.S. attorneys investigate BILKING BILLIONS, Medicare, Medicaid, Military’s Healthcare
May-13-07 - http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x877011

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USA So NY & SEC:
Former Sen. Frist cleared in stock probes
RICHARD POWELSON - April 27, 2007 - http://www.scrippsnews.com/node/21982

Former Senate Republican leader Bill Frist of Tennessee, is keeping low key about his vindication in two federal probes over the timing of his 2005 sales of all his family's stock in HCA Inc.

When the 19-month-long probes ended with no charges, Frist simply issued a brief written statement to the news media Friday saying he was "pleased" that the findings echoed what "I've said throughout this matter ... (that) I acted properly."

Frist disclosed that he had been notified by both the Securities and Exchange Commission and the U.S. attorney for the southern district of New York that they concluded their inquiries and are taking no action. ....

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$$1.66 BILLION paid to settle Medicare and Medicaid fraud cases = 7 drug companies

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Bush's $800 Billion Lobbyist-Induced Giveaway On Medicare

Bush's $800 Billion Lobbyist-Induced Giveaway On Medicare Creates Democratic Opportunities
by Steve Soto
http://www.theleftcoaster.com/archives/006912.php

It’s time for Democrats to come out this fall for universal coverage, and to fix the donut hole and eliminate the corporate welfare behind the Medicare Part D benefit. And as more and more is learned about the role that GOP lobbyists played in foisting the Medicare Part D fraud upon seniors and all taxpayers with the Bush Administration's full support, Democrats can tie the culture of corruption and Medicare Part D into a powerful narrative in support of health care reform and public financing of congressional campaigns this fall. Hell, even GOP senators are thinking about hooking up with their Democratic counterparts to push public financing this year, so the time is right for the party to get ambitious on both health care and restoring the public's control over its government.

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DoJ intervenes in three qui tam suits accusing HealthEssentials, PLUS ...

Largest Hospital Chain in US Settles with Government over Allegations of Health Care Fraud'

Justice Dept. Delays Big Medicare Settlement

New DOJ Guidelines Tone Down Corporate Fraud Prosecutions = McNulty Memo
McNULTY: Federal prosecutors required to seek approval from senior DoJ officials

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Get the picture?