Ex-Exec Gives Details on Alleged Fraud
A former executive who admitted to helping run a massive fraud at rehabilitation giant HealthSouth Corp. said then-Chief Executive Richard Scrushy had told him to “hang in there” during the scheme and promised: “We’re not going to have to do this forever.”
The testimony by Ken Livesay in federal court in Birmingham, Ala., came as the former assistant controller, who has pleaded guilty, spent a second day on the stand at Scrushy’s trial on corporate fraud charges.
During cross-examination, defense lawyer Art Leach asked why Livesay failed to report his concerns about the scheme to HealthSouth’s corporate compliance staff or to Scrushy himself after the fraud swelled beyond $600 million in 1998.
“I ask myself that question a lot,” Livesay said.
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