HealthSouth exec facing prison time

Oh, I bet you all were missing the regular Richard Scrushy updates you once received from us. Back in 2007, FierceHealthcare's editors had their hands full with news of Scrushy's legal travails, as he fought to escape with some skin intact from his prosecution over the HealthSouth financial fraud and other questionable business activities. 

With Scrushy's fate settled--he was sentenced to almost seven years in prison--there was a lull in the HealthSouth perp walks, but matters are still shaking out. It seems a federal appeals court judge has ruled that another former HealthSouth executive should face prison for his role in the $2.7 billion-dollar financial skulduggery.

Ken Livesay, a former assistant controller and chief information officer for HealthSouth, was originally given three parole-only sentences for his role in the fraud. He received much lighter sentences than former colleagues like Scrushy since he cooperated with prosecutors, testifying for days in the trial of Scrushy and former vice president and division controller Hannibal "Sonny" Crumpler.

But after three appeals by prosecutors, the 11th U.S. Circuit Court of Appeals has ruled that probation doesn't cut it as a sentence for Livesay. The case now gets bumped back to the district court level.

To get more information on the case:
- read this item in The Tennessean

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