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HealthSouth

By: Associated Press
By: Associated Press

A third former HealthSouth executive has linked fired CEO Richard Scrushy to the fraud at the rehabilitation giant.

Former finance chief Mike Martin testified Tuesday that Scrushy was happy about a plan to illegally ditch millions in expenses.

Martin is one of 15 former executives to plead guilty in the fraud scheme. He says Scrushy approved a plan that Martin and another executive came up with to further the scheme to overstate earnings.

Martin says Scrushy seemed impressed at how good they were at doctoring numbers.

Federal prosecutors allege that Scrushy was behind a scheme to overstate HealthSouth earnings for a seven year period that started in 1996.

The defense maintains that another executive, not Scrushy, directed the fraud.


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