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Ex-HealthSouth execs plead guilty

NEWS IN BRIEF — Posted May 17, 2004

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Two former HealthSouth vice presidents have pleaded guilty to criminal charges in a kickback scheme involving a hospital in Saudi Arabia.

Thomas Carman, 52, pleaded guilty to lying to law enforcement authorities, federal prosecutors announced April 27. He could receive up to five years in prison and $250,000 in fines when he is sentenced July 22.

Earlier that month, Vincent Nico, 47, pleaded guilty to two counts of wire fraud. He could face up to 20 years in prison and $500,000 in fines at his July sentencing.

The case stems from a bribery and kickback scheme related to HealthSouth's contract to provide a hospital in Saudi Arabia with staffing and management services. Carman, Nico and other HealthSouth executives allegedly paid a $500,000 bribe by way of a bogus consulting contract. After receiving the money, the Saudi national allegedly paid Nico a kickback of $125,000 per year for three years.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/05/17/bibf0517.htm.

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