The Securities and Exchange Commission filed suit Monday against former Chief Financial Officers Bill Owens and Weston Smith for insider trading and fraud.
The agency said the two apparently sold almost $13 million in company stock during the time they admitted helping to inflate earnings. Sales records filed with the SEC show Owens sold $11.3 million in stock, while Smith is accused of selling $1.6 million.
An insider trading violation can result in forfeiture of some or all the sales price of shares sold with material considered nonpublic information. Owens and Smith pleaded guilty last month to securities fraud, admitting they had inflated the company's earnings.
They have agreed to assist federal prosecutors with their investigation of HealthSouth CEO Richard Scrushy. He has not been charged with a crime.
AP Video Reports
Most Popular
- Chicken Salad Chick Finds Home for Franchise in Dothan
- Enterprise City Schools Superintendent Has New Position
- Nintendo of America CEO Talks Big, Upcoming Wii U Games
- Late Spring Snowfall in Siberia After Heatwave
- School Safety App at Honeysuckle
- "Kung Fu Panda 3" To Begin Production Soon
- UPDATE: State Releases List of Failing Alabama Schools
Most Commented
powered by DisqusWTVY.com Features
 |
Get the ingredients you need to cook with Rach all week long. |
 | |
 |
Full length exclusive concerts from hot artists. |
| |
 |
Take a break! Classic Pacman, Frogger, Asteroids and more. |
| |
 |
FREE Listings Sell almost anything locally. |
| |
