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HealthSouth

By: Associated Press
By: Associated Press

An accountant testified today he never saw documents directly linking fired chief executive Richard Scrushy to a massive fraud at rehabilitation giant HealthSouth.

Harvey Kelly, who testified last week for the prosecution, made the comments under cross examination by a defense lawyer.

Kelly, who also investigated fraud at Worldcom and Adelphia, said he had not seen any e-mails, faxes of memos linking Scrushy to the fraud.

He also testified that any corporate CEO must rely on people below him for accounting work.

The defense contends subordinates in HealthSouth's accounting offices lied to Scrushy for years, and he was unaware of what Kelly previously said was a $2.7 billion overstatement of earnings over a seven year period.


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